The future for dynamic packaging

Friday, 09 Feb, 2004 0

Travel Technology Show Special: Online agents are going to demand closer links with suppliers if they are going to successfully keep up with consumer demand for dynamically-packaged product, says chief executive of HyperTech solutions, Rakesh Mishra. Mr Mishra told TravelMole: “Typically contracts with suppliers were either through lengthy paper contracts or through middlemen, but that is going to change.” He told TravelMole that buying up suppliers, as Lastminute.com has done, is one way of getting total control of inventory, but he said it wasn’t necessary to go that far. “They are trying to control suppliers but they can still get the flexibility they need by going straight to them”, said Mr Mishra. He said that the time it takes to start working with suppliers can vary: “It depends on their technology, and how close you can get, but we have done it in four weeks”. Getting close contact with suppliers will allow online players to keep up with the advances in dynamic packaging. In his presentation to a packed seminar at the Travel Technology Show, Mr Mishra outlined these as; just-in-time packaging – offering more last minute deals, and specialist dynamic packaging – whereby a destination can be sold in a number of different ways by directing the consumer towards specialist interests such as golf, diving or spa. Another advance he outlined was real-time dynamic packaging, that requires an XML data feed to link different distribution channels, and advanced dynamic packaging, which will see companies adding more complicated extras like transfers and meals. Also speaking at the event was OTC group sales director, Vic Darvey, who said that his company was looking into advanced dynamic packaging. At the moment consumers can package flights, hotels, car hire and insurance with OTC. But Mr Darvey says the company is looking to work with suppliers to add attractions, transfers and airport parking. He told TravelMole: “There is ceiling to how complex a dynamically-packaged booking can get, but we haven’t reached it yet.” Mr Mishra also outlined a sort of technology check-list during his presentation that would be of interest to online agents thinking of launching into dynamic packaging. He said there is always a way to make it less painful and expensive. His points were:

You must be able to integrate technology to anything. There is no point in making new technology that is an island. No single software will do everything so it must be able to integrate.

Technology must fit with your business flow. Technology should not dictate a change in your business flow.

You must be able to layer the customised functionality on top of regular functionality, rather than re-writing it, because that keeps costs low.

If you want to make something less expensive you have to be able to integrate it in phases. If someone says to you that it is all or nothing, I would not consider it.

Report by Ginny McGrath