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Travel agents could lose out in dynamic packaging battle

January 20, 2005 |

Paul Richer, Senior Partner of travel technology consultancy, Genesys, claims that travel agents may lose out in the dynamic packaging battle if tour operators assert their traditional role as the industry`s travel product packagers.

Paul Richer, Senior Partner of travel technology consultancy, Genesys, claims that travel agents may lose out in the dynamic packaging battle if tour operators assert their traditional role as the industry`s travel product packagers.

Genesys has just published its 2005/2006 Tour Operator Technology Review. Richer stated, “Since we published the last edition 18 months ago, technology suppliers have been busy updating their systems to allow tour operators to dynamically package with ease. The majority of tour operator reservation systems now offer comprehensive functionality to allow operators to put together packages that bundle their own contracted inventory with attractive third party products such as no-frills flights.”

“Whilst the industry is hailing dynamic packaging as the travel agents` saviour, it is tour operators who may be the big winners. They are the people who get out there and contract the best product at the best prices. This means they should be able to make a better margin than agents even when dynamically packaging their inventory with zero commission products. Those agents that are succeeding are those that are adopting a tour operator business model.”

The review gives the lowdown on what technology companies can offer operators in terms of products, training and support. Where possible, it provides information on who their clients are.

The review features 14 new suppliers this year including several that are suitable for hybrid agency/operator businesses. The 57 suppliers in all are divided into six categories: full reservation and administration systems, travel e-commerce developers, third party systems integrators, net fares and rates databases, GDSs and viewdata system connectivity.

Paul Richer stated, “As the life of a tour operator becomes increasingly complex, a review such as ours becomes more important as a starting point in an operator`s search for the right technology. “

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