Choosing a Travel System by Mike Cogan

Mike Cogan, Partner, Equinus

For much of my career there were just a handful of travel systems.  Airlines had powerful reservation computers and distributed seats through the GDS.  Tour operators had reservation systems, some developed from the airlines.  And travel agents (in the UK) had viewdata and maybe an agency management system to record bookings and pay suppliers.  All fairly straightforward and choosing a system was usually a matter of price. 

Then along came the Internet and soon everyone needed a website.  Any old site would do as long as it didn't cost too much and didn't need much attention.  Oh how things have changed!

Tour operators are now offering components alongside pre-packaged holidays and agents are becoming tour operators.  The business model is converging and so too is the technology.  Attracting online consumers has become a business in itself and having any old website isn't good enough.  Choosing a travel system now requires careful research and planning.  There are lots of suppliers with good systems, some offering flexible payment plans that link charges to usage.  Price is no longer the key issue.  Today it's more about choosing a system that will help increase conversion rates and reduce the cost of sale and fulfilment. 

So what should one be looking for in a business system and how should one go about it? 

The first thing is to write down what will be important for your business, today and for the next 3 to 5 years.  Do you have a website and do you want it to offer online booking?  This applies as much to travel agents as tour operators.  What about brochures?  Do you want website visitors to download all or part of your brochure?  Do you need a shared content management system that can be used to create printed brochures and support your website, displaying text and images alongside an availability search? 

Will you need GDS integration?  Do you sell through travel agents and do you need viewdata or a secure travel agent area on to your website?  Do you want to offer some form of dynamic packaging?  If so, which component suppliers will you be using?  Will you be taking allocations or connecting directly to the suppliers selling system?  Do you need a flight engine that will search for seats from no frills airlines and other airline websites?  Do you have net airline net fares and where will these be loaded?  I could go on and on and the list can be exhaustive.  But this is why it's so important to get these requirements down on paper. 

Once you have documented your key requirements, start compiling a list of suppliers.  The Internet is a good source of information and there are online and printed guides.  Ask around and invest some time at specialist events, such as the Travel Technology Show and WTM. 

Next write to the suppliers, either by email or post.  Introduce your business and describe what you are looking for in a system.  List the functionality that must be available, such as GDS integration, postcode lookup, card processing, viewdata etc.  Then list any optional or later items, such as a content management system or website booking.  Finally ask for a written response including an indicative price and a client list, all to be provided within a reasonable timescale. 

When you get the supplier responses, translate them into a comparative table.  You may have to dig around in the response, read it a few times or even go back and ask for more information.  Make sure you have everything you asked for and look out for any hidden costs. 

Next stand back and see which suppliers offer most of what you need and invite them to make a presentation.  Even propose the Agenda for the presentation.  A presentation could take most of the day and you don't want to waste the opportunity or be sidetracked by a sales pitch.  The supplier agenda won't necessarily match yours! During the presentation, try and get a good feel for the product.  If you're a tour operator, send the supplier your brochure beforehand and ask them to demonstrate your product being handled by their system.  If you're an agent, send them some typical and extreme booking scenarios and ask to see these being processed.

After the initial presentation, score each supplier and try to get down to a short-list of two or three, preferably no more.    If in doubt, don't shortlist.  Then obtain a precise, written quote from each short listed supplier and ask for a copy of their Service Level Agreements.  If they don't have such a thing, ask yourself why not! This is an important document, which should describe what you can expect by way of support and future system upgrades.

Now for the hardest bit - choosing the supplier.  There may be little differentiation and it may boil down to price.  Or it may be chemistry and feeling comfortable with one rather than another.  But remember, it's not the salesperson that will be your everyday contact.  So maybe call the Help Line or Support Desk and introduce yourself.  Ask how they log support calls, how long they typically take to fix and how many are outstanding when you call! Listen to how they respond.  Do they sound as if they care?  Can you understand them? 

Finally, discuss and agree an implementation plan with the supplier.  This should cover hardware as well as software, training and acceptance testing.  All quite simple, but you would be surprised how often this gets overlooked.  And a word of caution, no matter how well you plan, something will go wrong.  Anticipate this and discuss it with your supplier.  Remember, the supplier has lots of experience of implementing systems and has probably seen it all before. 

One more thing, often overlooked.  How about your staff?  Have you briefed them on your plans?  Did they help with the supplier selection?  Can you identify internal stakeholders who will help with the implementation and, possibly, migration from an existing system?  And how might your internal procedures have to change with the introduction of a new system?  Don't forget training, not just on the new system, but also on new business processes and customer support. 

Hopefully the implementation will not be a disaster and you will soon be reaping the benefits of your investment.  But remember, the relationship between you and the supplier is no different than any other and the honeymoon period is soon over.  No matter what, try to cooperate with your supplier at all times and avoid a costly divorce in the future.  Because after the divorce you'll have to start all over again!

Finally, if you think you need outside help, don't skimp and try to cut corners.  The more you plan and prepare the better chance of a successful implementation.