Provider connectivity
Travel providers have the most perishable items for sale. In the Travel Inventory Distribution System, timely and standardized access often defines a profitable business. As vendors stopped making their inventory available on a single platform like GDS and new vendors emerged using non-GDS channels, we now have a multitude of mechanisms for vendor connectivity. This white paper discusses the challenges of staying well connected with travel providers and the business and technology landscape for solutions in the travel domain.
Supplier Connectivity Challenges:
Getting products to consumers in the most effective and cost-effective way has been a key goal in any vertical, and travel is no exception. The emergence of multiple supplier options is a phenomenon facing the travel distribution business today. A key challenge that needs to be addressed is having the right ingredients to take advantage of the various sources of vendor inventory and the connectivity challenges they present.
From the traditional model that had ticket agents at its center, the travel industry has seen the evolution of a number of channels in both the physical space and the Internet space. This phenomenon has taken place alongside the rise of other developments in the travel industry, such as the rise of low-cost airlines and budget hotels, increased spending on corporate travel, and growing demand for tourism in developing nations. of the world. The evolution of travel provider connectivity and subsequent distribution around the world has been dictated by past trends.
Traditionally, GDS systems have played the role of supply sources for travel inventory availability. The GDS role over the years progressed rapidly from checking seat/room availability to checking fares/rates and then booking. Electronic data interchange (EDI) within a supply chain was the first real-time business application. As supply sources proliferated, the distribution channel sought to access them through alternate routes; on the other hand, these alternative suppliers wanted to go through the GDS Systems to reach the distribution network. Either way, the challenges of supplier connectivity for the distribution channel have multiplied rapidly.
Provider Universe:
The Provider Universe tends to be very large and diverse. Starting with airlines and hotel chains, there are a variety of package inventory and content providers in business today, offering everything from simple business/leisure travel to luxury vacations and adventure sports and special events. . With the ever-expanding demand for travel and related services, providers continually innovate to meet the growing needs of customers. In addition to GDSs (Amadeus, Galileo, Saber, and Worldspan) and alternative GDSs (ITA, G2), there are many other providers, such as Tourico, TravelGuard, Viator, etc.
changed scenario
The distribution channel has changed from linear to highly non-linear. With inventory available from multiple sources, it is critical that the various players in the distribution channel, such as travel agents and online travel booking systems, have an up-to-date list of the cheapest available inventory for each travel product to offer. to his clients. Travel providers built web applications powered by e-commerce transactions, implemented partner links to market their inventory along with distribution to wholesalers and travel agents. Suppliers have the challenge of achieving the distribution of 100% of their inventory at the lowest cost. While travel inventory sellers are challenged to reach all possible sources of inventory to consolidate, compare and offer the best price to the customer.
Provider connectivity situation today:
XML message-based connectivity with vendor inventory sources has proliferated widely. Reservation technology providers have access to a wide variety of messaging standards to access availability and pricing data and integrate it into the business applications they build. The main benefits of using XML-based provider connectivity are as follows:
• Automation of time-consuming tasks to increase productivity.
• Addition of custom features in transactions.
• Added display flexibility with personalized marketing.
Over the years, a wide variety of XML message formats proliferated, causing interconnectivity problems. The Open Travel Alliance (OTA) provided a community where companies in the electronic distribution supply chain work together to create an accepted framework for electronic messages, allowing suppliers and distributors to speak the same language of interoperability, trading partner to trading partner. business partner. This resulted in the introduction of reusable standard messages so that system architects and software developers do not have to start all over again when a new distribution partner comes on board.
Possibilities with vendor connectivity enhancements:
XML/web service based provider connectivity links can be added very quickly to allow travel distribution companies to stay focused on serving their customers rather than getting bogged down with systems development.
Travel providers often aggregate the most competitive fares and rates and make them available to the distribution channel using standardized connectivity tools. This is done using a mechanism called net rates. Net rates (also called private rates) are so named because they are not published in the GDS/CRS systems. They are typically 25% lower than published rates. These rates will allow Suppliers and intermediaries to effectively compete against reputable online travel agencies such as Expedia and Travelocity. These connectivity options are very useful for providing business-specific features such as individual markup capabilities (by percentage, by a fixed amount, by provider, by booking class, etc.)
Universal Adapters for Provider Connectivity:
In the universe of diverse connectors between Suppliers and the Distribution space, the concept of universal adapters responds to the need to simplify the landscape. Application interfaces can be written on standard adapters, and bringing in additional partners is just a matter of adding a few more pieces to the software architecture. This reduces the costly and time consuming cycle times involved in creating connectivity software for each specific situation.
These adapters mirror the functionality of provider systems through Internet connectivity, allowing customers the flexibility to create fully customized applications that better support and integrate their business with providers.
These universal adapters act as a library of bundled commands designed to reduce development and maintenance costs.
technological advantage
What was once the tedious and complex process of accessing supplier inventory through database integration has moved from EDI to API to web services, XML and SOA. While all of these mechanisms are in place to consistently manage travel inventory across the provider ecosystem, the seller may choose the provider’s connectivity option to take best advantage of the business situation and based on their business growth plan. The variety of vendor inventory exposure has helped the vendor take advantage of the best technology tools and framework; thus implementing travel applications to provide better service and optimize options for their customers.
Conclution
Opportunities exist today to build a variety of vendor connectivity to their operating systems to promote and sell their offerings in the most flexible way. With open standards and a unified approach to unite the universe of providers, there are options today for how provider connectivity can be improved in the travel distribution business rather than being tied to one product/licensing scheme or another. .