The turn of the millennium brought with it several technologies that completely transformed the global business environment. Technologies such as the internet and social media provided a lot of advantages to many businesses that were aware of the potential of these new media. As a result, the companies that were able to incorporate these newer technologies into their existing mixes enjoyed a certain competitive edge over the companies that relied heavily on traditional technologies. The travel management companies is no stranger to such changes having constantly transformed itself through the ages depending on the needs and requirements of society.
The advent of the internet and social media platforms enabled Travel Management Companies with a much-needed platform to showcase their listings. The 2000s saw the rise of several online travel management companies that aggressively expanded their markets in new and emerging markets due to the rapid boom of the travel industry. There were several reasons behind the shift in the industry:
- Shorter travel time between locations
- Better communication between long distances
- Easier access to information
- New and emerging markets in Asia, Latin America and Africa
- New opportunities through strategic business ventures
- Rise of the niche industries
- A shift in the mentality and psyche of people
People are much more open towards alternate business opportunities today when compared to the general population before the internet revolution. This is because the internet provides people with a direct channel to market their products and services thus leading to better relationships between the provider and the consumer. Therefore, niche industries found their footing leading to a lot of more people travelling regularly for their business needs. It was essential that the travel management companies understood the shift in the market and orient their ways to better meet the needs and wants of their target market.
Several technology companies started operations to meet these growing needs of the business when it came to optimizing their business practices. If businesses were to evolve into the digital era, they needed to do away with their archaic technologies and incorporate these newer ones to reach more audiences and provide better services. The shift towards an online business model by travel management companies was a step in the right direction but since the market was new, these companies struggled to find the most optimal ways to sell their products.
According to certain studies, during the mid-2000s, companies started pricing their products competitively due to the increase in competition in the market. This led to a loss in revenue and the hospitality industry was struggling to provide its services at the stipulated prices. The market collapse of 2008 further worsened the situation and companies were scrambling to find their footing in an extremely saturated market. The disruptive business model introduced by Airbnb was considered a threat to the hotel industry but played a critical role in paving the way for travel agencies to modernize their services.
Most travel agencies realized the need for major changes in their business model and pricing strategies to attract larger audiences – a factor that enabled Airbnb to grow rapidly and expand its services to global markets. Content management and distribution were determined as two key factors that affected the overall credibility of any online business and companies that were able to adopt technologies that automated their content management was able to provide better services to their end-users.
Reliability on online service providers was still on the rise though as the internet provided an ease of access that could not be matched by any other platform. During the early-2010s, the smartphone became a staple and people had constant access to the internet through their smartphones further increasing the dependency on online platforms. Since the number of bookings was constantly on the rise, there was a need for companies to update their listings as frequently as possible to reflect the latest changes in listings and provide the best possible choices to customers. Therefore, it can be seen that there are several factors that determine the viability of an accommodation provider in a modern context:
- Accessibility: A modern accommodation platform needs to be accessible to all potential customers. This means adopting a business model that focuses on both online and offline selling.
- Visibility: A platform needs to be visible to attract a large number of audiences organically. It does not make much sense to have a presence on different mediums without optimizing one’s visibility to end-users.
- Affordability: It goes without saying that customers will buy from platforms that provide the best value for their money. Therefore, a modern accommodation provider needs to be affordable and provide packages for all types of tourists and travelers.
- Technology: The technology adopted by any given company determines its overall quality of service and effectiveness. Therefore, a modern accommodation provider must incorporate the latest technologies into their existing systems.
- Quality: Quality has always been one of the drivers of businesses since ancient times. Any company operating in the service sector needs to provide the best quality of service to remain competitive in the market.
- Sustainable: Sustainability practices are quickly becoming one of the most important factors that determine the viability of any modern business. Customers of the new age prefer companies that are sustainable since it positively impacts their psyche. In addition, sustainable practices also cut down on losses for the company through the incorporation of progressive models.
- Environment-friendly: The impacts on the environment and climate change are two of the most important challenges faced by humans at present. The travel and hospitality industry has long been associated with environmental degradation and there is a dire need for the industry to change their practices. However, most companies are now focusing their resources on sustainable practices and that has somewhat restored faith in the industry.
- Support: Support is a key aspect of any business operating in the service sector. Companies must provide multiple channels of support to their consumers to maintain good relations and maintain their brand image and value in the market.
These are some of the key factors that determine the viability of any modern accommodation provider. The industry is constantly evolving and businesses must keep up with these changing trends and scenarios to remain relevant. We, at Vervotech, are constantly coming up with new ways to help travel businesses and suppliers optimize their systems with progressive new technologies. Click here to learn more about the ways Vervotech is helping travel businesses worldwide grow!
About Vervotech Mappings:
Vervotech Mappings is a leading Hotel Mapping and Room Mapping API that leverages the power of AI and ML to quickly and accurately identify each property listing through the verification of multiple parameters. With an industry-best coverage of 98% and an accuracy of 99.999%, Vervotech Mappings is quickly becoming the mapping software of choice for all leading global companies operating in the travel and hospitality industry. To learn more about Vervotech Mappings and the ways it can enhance your business in the long run contact us: firstname.lastname@example.org