The principle of having all travel sectors; including flights, accommodation, car rental, rail, transfer, sightseeing, entertainment, and others in one platform and booking anything that a modern traveler needs in one window sounds very attractive to many.
Demand for seamless travel (connected trips) is rising and many thoughts and conversations have/are being taken on the one-stop-shop concept/travel solutions and how best it can be implemented.
The concept is not new as it has been tried before but it did not last. The first time tried by UAL Inc. was during the '80s when in addition to their core business, the company, driven by a dynamic CEO, created/invested in a travel conglomerate branded under Allegis Corporation. This large conglomerate was comprised of United and United Express airlines, Hilton Int. and Westin hotels, Hertz Car rental, a reservation network, a leasing company, and an insurance group.
The objective of Allegis was to enable a traveler to reserve a seat on a plane, a hotel room, a rental car, and full travel insurance for the whole journey through one source, all owned and controlled by the conglomerate.
At the time, it was a visionary and novel concept researched and well-received by the whole travel and tourism industry at large. Unfortunately, also well-received by the greediness of Wall Street and of the Shareholders who felt that the companies/brands involved would be worth much more on their own and forced the CEO/Board to split and sell (1987) each component of the conglomerate at a profit. Again, the short-term 'profit greed' prevailed over practicality and benefits to customers. It was a brief-lived great concept.
Over the past couple of decades, several 'tech Gurus', investors, and OTAs have been chasing the idea of developing and implementing a one-stop-shop for travelers, but with lukewarm results. Can the progress made by technology and e-commerce help the process? Most probably yes, but what would be the cost/investment of a secure/reliable process and, most importantly, the consumer response?
Each sector of the travel-tourism-hospitality industry has its own operational, financial model, networks, and customer journey that don't easily blend with the others. Each sector/segment is fundamentally different, requiring specialized expertise that may not be generalized in most cases.
Product and service providers (airlines, hotels, car rentals, cruises, trains, attractions, and others) are all promoting direct bookings with interesting promotions, packages, and recognition and providing material rewards to their clients. How can a one-stop-shop platform handle or compete with this traditional way of operating?
Will consumers opt for the convenience of the one-stop shop or recognition and savings by booking directly with trustworthy product and service providers in separate categories? This is a contentious point as different travelers respond to different offers. Ultimately travelers want the best prices, recognition, memorable experiences, and human interaction, across all parts of the journey.
For the one-stop travel solution to be successful, all parties involved (customers, product/service providers, and respective solution/s) have to benefit from it. To develop a commercially viable solution for all, a combination of new/advanced technology systems and people's expertise is needed. Is this feasible and who can successfully do it without commodifying the whole travel-tourism-hospitality industry?
By Giovanni Angelini - Exclusive for 4Hoteliers.com
Giovanni Angelini
A 50 year veteran of the Hotel-Hospitality-travel industry with a wealth of experience acquired in 4 Continents, Asia in particular. A long term resident of Hong Kong and Retired Chief Executive Officer of Shangri-La International.
A board member of several large corporations and member of many industry related and quality management organisations. Founder of Angelini Hospitality, providing consultancy and advisory work to developers and hotels-travel-tourism organisations.
Recipient of two Honoris Causa (Doctorate) in Business Administration and in Global Business Leadership, four Lifetime Achievement Awards, the 2006 Corporate Hotelier of the World, Maestro del Lavoro (2014) and of several other recognitions and awards.
