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Operators ‘winning’ dynamic packaging war
Agents are losing share of the dynamic packaging sector as operators raise their game, according to a leading industry consultant.
“Whilst the industry is hailing dynamic packaging as the travel agents’ saviour, it is the tour operators who may be the big winners”, says Paul Richer, senior partner of travel technology consultants, Genesys.
According to Mr Richer, advances in technology available to operators, increasing take up of that technology and the ability of operators to package their own product with that of third parties such as no-frills airlines, means operators are well positioned to “contract the best product at the best prices”.
“This means they [operators] should be able to make a better margin than agents even when dynamically packaging their inventory with zero commission products.
He added: “Those agents that are succeeding are those that are adopting a tour operator business model.”
According to Mr Richer, the 2005/2006 Tour Operator Technology Review, released this week by Genesys shows that technology companies have done much to improve tour operator dynamic packaging products. The review features 14 new suppliers, taking the total to 57. The review costs £49.50 and is available at www.genesys.net.
Report by Ginny McGrath
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