Time for industry truce on dynamic packaging

It’s time for the industry to stop throwing mud into the dynamic packaging debate and agree best practices – guest comment by Simon Andrews, sales director Top Dog Travel Systems

The debate around dynamic packaging has raged since ABTA’s conference brought the trade’s dissent into the spotlight, with the flames fanned all over again at TTA’s event.

Despite the explosion in dynamic packaging and the opportunities for agents to earn bigger profit margins from independent holiday sales to replace shrinking commissions elsewhere, there is still considerable uncertainty over the who, what, where and when of selling separate travel components.

Agents are lambasted as ‘technophobes’ while technology providers are criticised for shallowness in the dynamic packaging debate.

The truth, as ever, lies somewhere between the two.

The power of the internet, coupled with the prodigious growth of low-cost carriers, has seen changes sweeping our industry that are enabling companies to sell entirely new types of product in entirely new ways.

Because the internet is powering this revolution, the technology we use to build, sell or manage product has had to change.

Agents and operators are being asked to invest money in new systems and better technology at a time when competition from online agents and direct sell companies is booming.  They’re right to ask tough questions on exactly when and where they need to spend their hard-earned money.

The debate does need to focus on customer service in resort, bonding, insurance, and of course technology, so that the travel industry can move forward fully aware of opportunities, threats and best practices, and so grow their markets and satisfy their customers.

Dynamic packaging won’t be right or indeed necessary for all companies, and to invest in change without understanding the impact on existing business models will prove a costly mistake.

Most companies, however, must recognise that if they keep doing the same things, they’ll drop behind. The influx of technology providers with exciting new systems is helping travel agents and operators create their own point of difference in a crowded market, enabling them to offer products and services that are not the same as competitors.

As an industry we must identify the gaps, agree the answers and enjoy open and honest debate, or watch the established online brands forge ever further ahead.