Comments on: Why the Long Tail of travel is wagging the head of the dog http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/ Fri, 12 Mar 2010 11:40:11 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Commoditization Does Not Spell Death For Adventure Products « Stephen Joyce http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-4291 Commoditization Does Not Spell Death For Adventure Products « Stephen Joyce Tue, 05 Jan 2010 22:12:45 +0000 http://www.tnooz.com/?p=3127#comment-4291 [...] need to be adopt electronic systems for managing their product data and their inventory.  As Valyn Perini, from Open Travel recently noted, for many tour operator software vendors, their biggest competitor is Microsoft Excel, not other [...] [...] need to be adopt electronic systems for managing their product data and their inventory.  As Valyn Perini, from Open Travel recently noted, for many tour operator software vendors, their biggest competitor is Microsoft Excel, not other [...]

]]> By: Best Tnooz articles of 2009 | Tnooz http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-3660 Best Tnooz articles of 2009 | Tnooz Wed, 23 Dec 2009 16:55:38 +0000 http://www.tnooz.com/?p=3127#comment-3660 [...] 11) Why the Long Tail of travel is wagging the head of the dog [...] [...] 11) Why the Long Tail of travel is wagging the head of the dog [...]

]]> By: The Week in Travel Tech - November 1 to 7 2009 | Tnooz http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-1744 The Week in Travel Tech - November 1 to 7 2009 | Tnooz Fri, 13 Nov 2009 23:01:04 +0000 http://www.tnooz.com/?p=3127#comment-1744 [...] Why the Long Tail of travel is wagging the head of the dog [...] [...] Why the Long Tail of travel is wagging the head of the dog [...]

]]> By: Ben Colclough http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-1568 Ben Colclough Thu, 05 Nov 2009 09:30:43 +0000 http://www.tnooz.com/?p=3127#comment-1568 I think we are currently at the tipping point with complex travel products moving to online distribution. Many specialist operators are starting to tackle online sales and some are beginning to see success. The requirements are however, fundamentally different to hotels and flights. For instance, the depth and breadth of content required for any particular adventure travel product (for online sale) is vastly greater than for a hotel / flight. And whilst many customers do want to transact these products online (contrary to a lot of perceived wisdom) there is a big servicing requirement too, so as an OTA you need to have some very skilled & knowledgeable telephone servicing capabilities. The next piece in the jigsaw for OTAs is the requirement for merchandising. There is so much product overlap, with small local operators, DMCs and outbound operators all touting the same product. For example on some adventure travel consolidator web sights you could be offered essentially the same cycling tour in Vietnam from a UK outbound operator, a US outbound operator, the Vietnamese DMC and the actual local Vietnamese operator who runs the thing. The final piece in the jigsaw is the tailormade issue. Much of the large adventure operators are moving increasingly towards tailormade itineraries. I suspect the ability for an OTA to package individual tours, accommodation, flights and transfers together succesfully is still a long way off. I personally am delighted by the emergence of technology companies such as TourCMS, rezgo et al. as they will do a lot to facilitate the change. I'm particularly excited about TourCMS's forthcoming distribution system, and hope others follow suit. Final thought: Valyn's comment about being more "research oriented and less transaction-oriented, at least in the short term." is spot on. It is something we have found out the hard way at Tourdust (http://www.tourdust.com), we're trying to tackle all the above issues and have solutions in the pipeline, but it is going to be a long hard slog. I think we are currently at the tipping point with complex travel products moving to online distribution. Many specialist operators are starting to tackle online sales and some are beginning to see success.

The requirements are however, fundamentally different to hotels and flights. For instance, the depth and breadth of content required for any particular adventure travel product (for online sale) is vastly greater than for a hotel / flight. And whilst many customers do want to transact these products online (contrary to a lot of perceived wisdom) there is a big servicing requirement too, so as an OTA you need to have some very skilled & knowledgeable telephone servicing capabilities.

The next piece in the jigsaw for OTAs is the requirement for merchandising. There is so much product overlap, with small local operators, DMCs and outbound operators all touting the same product. For example on some adventure travel consolidator web sights you could be offered essentially the same cycling tour in Vietnam from a UK outbound operator, a US outbound operator, the Vietnamese DMC and the actual local Vietnamese operator who runs the thing.

The final piece in the jigsaw is the tailormade issue. Much of the large adventure operators are moving increasingly towards tailormade itineraries. I suspect the ability for an OTA to package individual tours, accommodation, flights and transfers together succesfully is still a long way off.

I personally am delighted by the emergence of technology companies such as TourCMS, rezgo et al. as they will do a lot to facilitate the change. I’m particularly excited about TourCMS’s forthcoming distribution system, and hope others follow suit.

Final thought: Valyn’s comment about being more “research oriented and less transaction-oriented, at least in the short term.” is spot on. It is something we have found out the hard way at Tourdust (http://www.tourdust.com), we’re trying to tackle all the above issues and have solutions in the pipeline, but it is going to be a long hard slog.

]]> By: Carl Jackson http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-1563 Carl Jackson Thu, 05 Nov 2009 06:31:35 +0000 http://www.tnooz.com/?p=3127#comment-1563 Excellent post. Your definition and analysis as well as the comments here give me a sense of Deja Vu as they go to many of the core concepts we've been addressing with an innovation we'll demo onstage at PhoCusWright. By contextually engaging travellers with experience and insight operators / DMO's can add to the research, validate and plan stages which helps these providers demonstrate expertise and build social equity. A recent study (I found via Jeb thoughts posterous -http://jebthoughts.posterous.com/under-the-influencers-the-relationship-betwee-0) indicate this influences behaviour lower in the funnel and I would add also helps reduce the effect of commoditisation. As you say Valyn very interesting times. Excellent post.
Your definition and analysis as well as the comments here give me a sense of Deja Vu as they go to many of the core concepts we’ve been addressing with an innovation we’ll demo onstage at PhoCusWright.

By contextually engaging travellers with experience and insight operators / DMO’s can add to the research, validate and plan stages which helps these providers demonstrate expertise and build social equity.

A recent study (I found via Jeb thoughts posterous -http://jebthoughts.posterous.com/under-the-influencers-the-relationship-betwee-0) indicate this influences behaviour lower in the funnel and I would add also helps reduce the effect of commoditisation.

As you say Valyn very interesting times.

]]> By: Tweets that mention Why the Long Tail of travel is wagging the head of the dog | Tnooz -- Topsy.com http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-1552 Tweets that mention Why the Long Tail of travel is wagging the head of the dog | Tnooz -- Topsy.com Wed, 04 Nov 2009 22:31:03 +0000 http://www.tnooz.com/?p=3127#comment-1552 [...] This post was mentioned on Twitter by Dennis Schaal, Stephen A. Joyce, Joe Buhler, Melissa Colella, Robert Cole and others. Robert Cole said: Tnooz debut 4 @OpenTravel Exec Director @ValynP: Long Tail of Travel Wagging Head of the Dog http://j.mp/1PyIVz | Good Read [...] [...] This post was mentioned on Twitter by Dennis Schaal, Stephen A. Joyce, Joe Buhler, Melissa Colella, Robert Cole and others. Robert Cole said: Tnooz debut 4 @OpenTravel Exec Director @ValynP: Long Tail of Travel Wagging Head of the Dog http://j.mp/1PyIVz | Good Read [...]

]]> By: Valyn Perini http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-1548 Valyn Perini Wed, 04 Nov 2009 21:09:21 +0000 http://www.tnooz.com/?p=3127#comment-1548 I think we're all in violent agreement here. Electronic distribution is a continuum - from filling out a web form to request a catalog via the post to buying the product online - and products hit that continuum at whatever spot is right for the product, the product's audience and the distribution channel. OTAs (and GDS' for that matter) have historically hit on the transaction end of the continuum, while complicated products have historically not event been on the continuum. That's what is starting to change and will continue to change. Whether or not the OTAs and GDS' move back along the continuum remains to be seen, along with where start-up companies hit that continuum. Interesting times! I think we’re all in violent agreement here. Electronic distribution is a continuum – from filling out a web form to request a catalog via the post to buying the product online – and products hit that continuum at whatever spot is right for the product, the product’s audience and the distribution channel.

OTAs (and GDS’ for that matter) have historically hit on the transaction end of the continuum, while complicated products have historically not event been on the continuum. That’s what is starting to change and will continue to change. Whether or not the OTAs and GDS’ move back along the continuum remains to be seen, along with where start-up companies hit that continuum. Interesting times!

]]> By: RobertKCole http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-1546 RobertKCole Wed, 04 Nov 2009 18:50:12 +0000 http://www.tnooz.com/?p=3127#comment-1546 Great first post Valyn. First, I would like to echo the comments of those above. Most importantly, you highlight the importance of embracing an expanded definition of electronic distribution to encompass all forms of content. This is essential for travel sellers to communicate value. Gone are the days when a traveler admits that they might not know much about a product, but the price was so cheap, they perceived value. The travel industry has been commoditizing itself for years by focusing only on the price and transaction. As the planning of more complete and complex end-to-end travel arrangements begin to migrate onto the web, traveler-seller relationships become more engaged and personal, the efficient and accurate syndication of content will be expected - just like real-time rate & inventory access. Web 2.0 technologies have helped democratize the travel space and have enabled the The Long Tail of travel. You are absolutely right. Those organizations that truly understand their customer - and WHY they travel (not just their mode of transport and where they stay) - will deploy technologies that will cleverly align the best product to address traveler needs. Establishing & leveraging industry standards is the fastest way to achieve that goal. Great first post Valyn. First, I would like to echo the comments of those above.

Most importantly, you highlight the importance of embracing an expanded definition of electronic distribution to encompass all forms of content. This is essential for travel sellers to communicate value.

Gone are the days when a traveler admits that they might not know much about a product, but the price was so cheap, they perceived value. The travel industry has been commoditizing itself for years by focusing only on the price and transaction.

As the planning of more complete and complex end-to-end travel arrangements begin to migrate onto the web, traveler-seller relationships become more engaged and personal, the efficient and accurate syndication of content will be expected – just like real-time rate & inventory access.

Web 2.0 technologies have helped democratize the travel space and have enabled the The Long Tail of travel.

You are absolutely right. Those organizations that truly understand their customer – and WHY they travel (not just their mode of transport and where they stay) – will deploy technologies that will cleverly align the best product to address traveler needs.

Establishing & leveraging industry standards is the fastest way to achieve that goal.

]]> By: Alex Bainbridge http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-1544 Alex Bainbridge Wed, 04 Nov 2009 18:45:28 +0000 http://www.tnooz.com/?p=3127#comment-1544 @James I *hope* we are right as we have a new distribution system about to launch that works on the principle of distributed marketing, centralised transactions. [Although doesn't technically/commercially exclude companies from using it for distributed transaction scenarios] More about this when we launch it :) Alex TourCMS @James

I *hope* we are right as we have a new distribution system about to launch that works on the principle of distributed marketing, centralised transactions. [Although doesn't technically/commercially exclude companies from using it for distributed transaction scenarios]

More about this when we launch it :)

Alex
TourCMS

]]> By: james dunford wood http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-1543 james dunford wood Wed, 04 Nov 2009 18:36:29 +0000 http://www.tnooz.com/?p=3127#comment-1543 Very interesting post. The challenge, as Valyn rightly points out, is alot of research/looking, and not alot of booking - at least not at the initial point of contact. I think Alex is right - what will develop will be marketing platforms, hosting travel companies that understand the long lead times and research-heavy aspect of these types of complex travel products. Very interesting post. The challenge, as Valyn rightly points out, is alot of research/looking, and not alot of booking – at least not at the initial point of contact. I think Alex is right – what will develop will be marketing platforms, hosting travel companies that understand the long lead times and research-heavy aspect of these types of complex travel products.

]]> By: Commoditization Does Not Spell Death For Adventure Products | Travel & Tourism Technology Trends http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-1542 Commoditization Does Not Spell Death For Adventure Products | Travel & Tourism Technology Trends Wed, 04 Nov 2009 18:22:15 +0000 http://www.tnooz.com/?p=3127#comment-1542 [...] need to be adopt electronic systems for managing their product data and their inventory.  As Valyn Perini, from Open Travel recently noted, for many tour operator software vendors, their biggest competitor is Microsoft Excel, not other [...] [...] need to be adopt electronic systems for managing their product data and their inventory.  As Valyn Perini, from Open Travel recently noted, for many tour operator software vendors, their biggest competitor is Microsoft Excel, not other [...]

]]> By: Joe Buhler http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-1541 Joe Buhler Wed, 04 Nov 2009 18:11:43 +0000 http://www.tnooz.com/?p=3127#comment-1541 Excellent description of the present situation. Reading this, I am not surprised that research shows increasing travel consumer disappointment with the travel research, shop, buy process. They are not aware of all the technical issues we insiders in the industry know are hindering progress. They just realize that the experience is not what they expect and can best be described a "click-o-rama" as I've called in a recent post. The challenge to the industry - and it's key players - is clear, tackle the issue of complex trip to drive future growth and increase customer satisfaction that will result in profits. A side benefit of offering an improved overall experience will also be less of a focus on the absolute lowest component price a value will be added. As we know from other industries, only value add can prevent a product or service from becoming a commodity where only price is the differentiator. Excellent description of the present situation. Reading this, I am not surprised that research shows increasing travel consumer disappointment with the travel research, shop, buy process. They are not aware of all the technical issues we insiders in the industry know are hindering progress. They just realize that the experience is not what they expect and can best be described a “click-o-rama” as I’ve called in a recent post.

The challenge to the industry – and it’s key players – is clear, tackle the issue of complex trip to drive future growth and increase customer satisfaction that will result in profits.

A side benefit of offering an improved overall experience will also be less of a focus on the absolute lowest component price a value will be added. As we know from other industries, only value add can prevent a product or service from becoming a commodity where only price is the differentiator.

]]> By: Stephen Joyce http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-1539 Stephen Joyce Wed, 04 Nov 2009 17:51:30 +0000 http://www.tnooz.com/?p=3127#comment-1539 I couldn't have written that any better Valyn. After spending a week with Adventure operators at the recent Adventure Travel World Summit, I found that many operators are interested in distribution and want to expand but fear that their products will become commoditized. What I had to explain is that an electronic distribution standard is like a can and what differentiates one can from the next is not the can itself but rather the contents of the can. The can could hold beans, pasta, soup, or tuna. All of these things are fundamentally different products but packaged in a way that makes them easy to ship to retail stores for sale to consumers. It will take time, but once we have operators using electronic systems it will become easier for them to distribute, because they won't have to think about it. I couldn’t have written that any better Valyn. After spending a week with Adventure operators at the recent Adventure Travel World Summit, I found that many operators are interested in distribution and want to expand but fear that their products will become commoditized. What I had to explain is that an electronic distribution standard is like a can and what differentiates one can from the next is not the can itself but rather the contents of the can. The can could hold beans, pasta, soup, or tuna. All of these things are fundamentally different products but packaged in a way that makes them easy to ship to retail stores for sale to consumers. It will take time, but once we have operators using electronic systems it will become easier for them to distribute, because they won’t have to think about it.

]]> By: Alex Bainbridge http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-1538 Alex Bainbridge Wed, 04 Nov 2009 17:48:18 +0000 http://www.tnooz.com/?p=3127#comment-1538 Hi Valyn Great post! Its a very interesting sector and one that is under reported over the trade press. Personally I don't believe distributed transactions will be the end point in this sector - but distributed marketing (to support product research) with centralised transactions will be the norm (e.g. sending traffic onto individual tour operator websites or sales leads into a CRM system) You mention this but mention it as a point on the path. I think we will get there and no further. Traffic will go from Google -> Vertical search (could be part of Google) -> Individual tour operator website / system [Incidentally, when I use the term tour operator I mean mainly companies that supply guides / tour leaders - not those who package hotels / flights] Alex TourCMS Hi Valyn

Great post!

Its a very interesting sector and one that is under reported over the trade press.

Personally I don’t believe distributed transactions will be the end point in this sector – but distributed marketing (to support product research) with centralised transactions will be the norm (e.g. sending traffic onto individual tour operator websites or sales leads into a CRM system)

You mention this but mention it as a point on the path. I think we will get there and no further.

Traffic will go from Google -> Vertical search (could be part of Google) -> Individual tour operator website / system

[Incidentally, when I use the term tour operator I mean mainly companies that supply guides / tour leaders - not those who package hotels / flights]

Alex
TourCMS

]]> By: uberVU - social comments http://www.tnooz.com/2009/11/04/news/why-the-long-tail-of-travel-is-wagging-the-head-of-the-dog/comment-page-1/#comment-1536 uberVU - social comments Wed, 04 Nov 2009 17:37:03 +0000 http://www.tnooz.com/?p=3127#comment-1536 <strong>Social comments and analytics for this post...</strong> This post was mentioned on Twitter by denschaal: Should emerging travel segments Excel or excel? Why travel's Long Tail wagging head of the dog (Tnooz) http://ping.fm/RbtQ8... Social comments and analytics for this post…

This post was mentioned on Twitter by denschaal: Should emerging travel segments Excel or excel? Why travel’s Long Tail wagging head of the dog (Tnooz) http://ping.fm/RbtQ8…

]]>