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Before Distribution Comes Standardization.
Travel & Tourism Technology Trends
Thursday, 30th July 2009
 
Before you can run, you must first learn to walk - you've all heard this many times in your lifetime - although the saying is overused, it is used because it is true. 

Although the saying can be applied to travel product distribution, in many cases the players are not even crawling yet.  The challenge with any travel product distribution is that it is, unlike tangible goods, an information exchange rather than a physical product exchange. 

It is also a global market involving multiple currencies, multiple languages, and various tax and legislative jurisdictions.  I consider myself a standards evangelist because I believe that in order to communicate effectively you must first create a shared language.  The language doesn't necessarily have to be yours or the person's with whom you are communicating.  The language could be some third language that you both share. 

For some, that language is mathematics, for others dance, art, or a programming language.  The point being that there must exist a standard by which the parties communicate in order to effectively share information.

The Multi-Channel Universe

There was a time when distribution meant selling airline tickets through travel agents through a closed distribution network.  In this environment standards don't really matter because the closed network can dictate connectivity and enforce proprietary communication. 

That time, however, is in the past and the reality of the future (thanks in part to the ubiquitous nature of the Web) is resulting in a universe comprised of multiple channels of distribution.  Airlines and hotels, especially, have been dealing with the issues of distribution, price parity, and single source inventory for years and in many cases have yet to find an adequate solution to the problems of product sharing. 

The issues are even greater when you look at some of the emerging markets for distribution such as tour and activities and vacation rentals.  These areas are predominately comprised of small businesses with fragmented systems and a serious lack of standardized processes or best practices.  Like the airline and hotel segments, these emerging areas are being lead by larger suppliers or even aggregators who have access to a large amount of product and are in a position to benefit from mass distribution. 

The opportunity with these emerging markets however, unlike the airline and hotel space, is that there are no monopolies within the space so the importance of standardization is greater, as are the potential benefits to the industry.  By establishing standards early on, we stand a better chance of ensuring that new tour operator systems or property management systems being developed have a framework for compatibility. 

For example, when we began development of Rezgo.com we looked around for standards in order to ensure maximum compatibility.  What we found is that there ARE no standards in the tour and activity space.  Even the OpenTravel Alliance standard request and response messages, which are a very basic message set for Destination Activities, are very rudamentary and don't really address the transactional needs of real-time destination product availability and pricing.

Standards Need Industry Support

It is not enough to evangelize the needs for standards and then to actually develop them.  Developing standards requires input from industry players, academics, and (in some cases) government.  Standards bodies, like OpenTravel, don't develop their standards in a vacuum and then force them on industry. 

The process involves recommendations from both suppliers and vendors and involves a review process by a committee that determines the viability of the standards.  If a particular segment of the market determines that standards are important, they can engage with organizations like OpenTravel to help develop and promote the standards.  The bottom line, though, is that standards don't build themselves, they have to be created and developed by a dedicated group of people.

Get Involved

No matter what kind of travel organization you are, chances are you live somewhere in the distribution cycle.  If you are a supplier, distributor, retailer, dmo, or even a trip planning site, you will probably encounter product data.  Whether you know it or not, you have an opportunity to shape how that product data is delivered.  I encourage you to visit the OpenTravel site and take a look at the messages that exist now. 

Find the ones that are pertinent to your sector and review them, or have someone who understands XML review them.  Compare how your current product structure compares to the standard and give your feedback.  At the very least, you will have a better idea of how compatible your structure is with others.  If you feel really passionate about standardizing your sector, then join one of the committees and get involved.

I don't doubt that in the end we will have standardization, it is only a question of when and by whom.  If we as a community participate willingly in the creation of the standards then we are less likely to end up with standards that are dictated by the largest company in the marketplace (think IE 6).

Stephen A. Joyce has been working as a travel & tourism technology consultant since 1995. In 2005 Stephen and his company, Sentias Software Corp., began development on Rezgo.com, a next generation Web 2.0 tour and activity booking engine for SME travel suppliers and tour operators. In June of 2007, Rezgo.com was officially released and now boasts a user base of 650+ companies. 

www.tourismtechnology.rezgo.com
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