Product. Contrary to popular belief, travel products are actually perishable. For instance, an unsold seat on a plane is lost revenue once the plane takes off; a vacant room in a hotel is also lost revenue once the clock turns 12 noon the following day. With critical "expiration dates," suppliers have come up with innovative ways to add value to the basic products. Additional perks are being packaged with the basic products (e.g. hotel stay with tour, airline with hotel stay, etc.) to fill up capacity. Although these new products also allow for increased product differentiation, they also cause confusion to the traveler. The Internet gives travelers the capability to make decisions among the wealth of options available.
Price. Personalized service equates to high premium – this concept is now a myth. Effective use of information allows travel providers to better profile and segment markets, which results in tailor-fit travel packages as opposed to generic travel products. These tailor-fit packages, when offered to business and leisure travelers, create the necessary volume. Coupled with the use of technology to automate mundane tasks, travel agency costs are reduced, eventually passed on as price savings to the end-traveler.
Promotion. Packaging is always a big factor in attracting buyers, and travel products are not an exception. Along with its natural wonders, a country’s "marketability" is heavily associated with its economic and political situation. These components give it character and personality, thus, its ultimate "packaging." Majority of travelers research for a travel destination online before making their decision. Therefore, the country’s "packaging" is critical. With the on-demand information at the travelers’ fingertips, it is possible for a traveler to just change his mind with the new knowledge. It is no wonder that the Philippines’ recent negative publicity has dampened the travel industry. The government’s increased efforts in promoting tourism are a step in the right direction. We see increased media coverage and more roadshows – all showcasing the best of the Philippines through the campaign of WOW (Wealth of Wonders) Philippines. However, the support of other governments will further complement these efforts for significant results.
Distribution. In the old days, transactions related to travel are highly paper-based. However, in the hype of technology, the travel industry is one of the pioneering sectors to transition onto a true "e-industry." The ease of transition is owed to the basic fundamentals of traveling – the value of a "travel package" is in the traveler’s experience, not in the actual receipt of the ticket or the reservation voucher. It is the culture of another country, the ambience of a hotel, or the experience of a zoo tour that makes or breaks the travel experience. Therefore, the mode of fulfillment, whether it be through e-mail, online reservations or e-ticketing, is immaterial. The more important element is the actual experience. Technology allows information to be transparent to the customer, the agent and the provider. This actually increases the independence of the traveler and allows him to ultimately determine his travel fate.
All this is not to say there is no more value in human interaction. Some still look for some form of interaction with a representative, especially with our accustomed Filipino culture. Travelers need to know that they can reach someone if needed. What we need to realize is that in the evolution of technology in the travel industry, the human contact points now have more value to the end-customer. We assist and support the traveler when he cries help; we recommend and personalize our services when he cannot decide; we consult and advice on how he can get the best value for his money.
Travelers are more sophisticated now, owing to increased information that is available for free. No doubt the Internet has spurred a new generation of travelers who are more knowledgeable, who demand better service, and who expect increased convenience. The travel industry continues to evolve, and this evolution continues to provide additional value for travelers. What’s next for the travel industry? Maybe, we can visit a country in virtual reality someday. And maybe, virtual reality is not so far away. We certainly never dreamed that man could walk on the moon, and now it is written in the pages of history. Who knows? We might even be able to travel through time.