Travolution

TTI: Co-op boss says tech companies are 'unrealistic'

Travel technology suppliers need to be more realistic about what travel agencies can afford to pay, according to The Co-operative Travel Group managing director Mike Greenacre.

The travel agency boss said, in his previous experience, technology companies "overpromise, overprice and underdeliver" and "to some extent, that is still true today".

Speaking at a panel discussion at the Travel Technology Initiative spring conference, he said there was a gap between what suppliers want to deliver and what most agencies can afford. "Most agencies work on thin margins and can't afford to keep investing in technology every 12 months," he said.

"Agents want good service, a sustainable system and for it to be delivered on time. There should be more communication between the two sides to make (the technology) more relevant."

Responding to Greenacre, Dolphin Dynamics chief executive Roberto Da Re said there was work to be done on both sides.

He said:  "Travel technology doesn't have a good reputation and some of us have worked hard to change that. Travel companies have got to take the time to make the right decision. They need to do more research to make sure they don't end up with the wrong system.

"The market price of employees in our sector is very high. Some clients come to us with very small budgets - there needs to be balance on both (sides)."

 

Readers' Comments

  Rob Wortham says...

There is a responsibility on both sides to make sure that there is a good match between travel technology systems being purchased and the business requirements of the customer. It's true that some technology companies over-sell and under-deliver. It's also true that some travel companies do not properly find out about what they are buying before they buy it, and assume that the supplier will just bend over and deliver whatever they need within a pre-agreed contract price, once they finally work out what it is that they do want. As I said, both parties have a responsibility to work together to make sure that requirements, deliverables, schedules, budgets and change control procedures are clearly agreed to both parties satisfaction prior to contracts being finalised.

Posted: 04 May 2010 |   Report Abuse

  Laura Rudd says...

It is true that some travel tech firms charge unprecedented amounts because they ‘re-invent the wheel’ each time; this just isn’t necessary if you have a ‘best practice’ approach. We utilise tried and tested functionality and package it up so technology can be slotted together seamlessly (as if it were Lego) and websites launched sometimes within days, not months. Some agencies are making promises that they can’t deliver, but from my experience, the keystone to successful delivery of any website is project management. We implement a fully managed project lifecycle that defines each stage of the project and provides real objectives - clear project objectives eliminates all of the hidden costs. With our fixed price Travel Packages, long gone are unrealistic timescales, un-tested functionality and extortionate pricing – it’s just functional travel websites that are custom designed, that work from day one and are delivered when promised. Digital Trip is one agency that Mr Greenacre’s remarks do not apply to!

Posted: 04 May 2010 |   Report Abuse

  Phil Nuttall says...

I have always stated that technology companies should work much closer with travel agent partners to assist with developments that add a real value to the booking journey pre and post. But agents have to be pro-active in this area to make it work.

Posted: 04 May 2010 |   Report Abuse

  LJ says...

Given their profit margins, travel companies' instinctively under value up front analysis and design effort, and claim they just want "a proven out of the box solution". Of course, this requirement changes when the product arrives, and an iterative process of changing requirements, poorly documented and governed design and non-existent testing creates universal frustration. Complacent, established, "market leading" travel technology providers, having convinced their customers that they are irreplaceable, cleverly allow this vicious circle to continue and overcommit on delivery, before releasing bad time and budget news gradually enough not to arouse too much ire. Overall, an unimpressive industry when it comes to best practice innovation in IT.

Posted: 30 April 2010 |   Report Abuse

  Richard Bristow says...

Newer technology is often lower cost than legacy based systems it is the human overheads that keep the costs higher. Many companies now offer their software applications on either a rental or a bureau basis which at least allows payments to be made from revenue rather than capital expenditure. I would always select first on functionality and the business benefits a product offers and then make a final decision my factoring in cost and payment options.

Posted: 30 April 2010 |   Report Abuse

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