By: David J. Wardell

© 1993 By: David J. Wardell.  Reproduction or redistribution in any form without written permission is strictly prohibited.

The latest and greatest computer-based devices amply demonstrate that you're ahead of the game and can be relied on to deliver consistently lower prices, quality service and lots of fringe benefits to your most demanding customers.

If CW is correct, why doesn't that translate into far more business for those that are "ahead" in the technology wars?

Why do smaller agencies always seem to be at a competitive disadvantage regardless of the computer-based tools they use?

If technology is irrelevant to competition, however, how can any agency justify the ongoing (and ever-increasing) investments that striving for technological advantage (or even parity) requires?

In the end, both views are wrong. Technology is essential to successful travel operations, but it usually does not translate into competitive advantage. Here's why:

1. Much of what passes for "leading edge" development in the travel industry isn't that good.

Travel technology has more than its share of products built upon little more than slick presentations. Striving for competitive advantage with such tools is a little like trying to drive a car without a motor in it.

2. Your customers don't value technology tools the same way you do.

When the corporate account bidding is over, will the world's best MIS really prevail over bigger rebates? How does the average corporate travel manager justify that to the boss? Would your vacation customers even notice new technology? These are rhetorical questions for which there are rarely "good" answers -- as far as technology-based competition is concerned.

3. Frequently the "latest" products don't address real problems travelers or travel buyers want to solve.

Most of the time, travel technology developers are solving their own problems or inventing problems to be solved because they need a reason to be in business. The last point is important for a rational approach to travel technology competition: It's all right to solve your own problems as long as you're clear that that's what you're doing and you can relate the steps to something corporate travel buyers (and their constituency, travelers) values. This can be quality, extended service benefits or financial incentives, but remember: These must be the focus, not technology itself.

A good example is travel MIS and reporting systems. MIS without sound "actionable" analysis is but a pile of papers -- no matter how superior the tool is that produces the paper. Adding visually appealing graphics to the equation makes a prettier pile of papers, but lacking effective analysis the pile remains competitively ineffective.

The key to gaining competitive advantage through MIS is how effectively an agency can relate MIS to specifics that match the customer's priorities.

Recently it has become trendy in a few quarters for people with economic self-interest at stake to position travel agent as adversaries to their customers. It is said that only through some intermediary (whether a technology product or a service) can the agent's financial goals (typically in the form of that supposed ultimate evil -- bigger overrides) be reconciled with those of its customers.

The client's goals are assumed to be lower prices, which, in case you missed it, are inconsistent with the agency's goals, according to the people making these claims.

This usually equates to a corporate travel purchaser taking "control" of an agency relationship through the intermediary, often in the form of a new tool that permits better MIS or closer monitoring of how the agent manages travel purchasing on behalf of the customer.

A moment's thought shows that technology is not at issue here -- understanding the MIS technology supports is. If a corporate travel manager is satisfied with the analysis based on the MIS you produce (to the effect that you are an efficient travel purchaser), what need is there for a third party?

Practical, analytical customer reporting is a component sorely lacking in most travel agencies, despite the multitude of technology products designed to produce these reports.

Competitive advantage, therefore, is available by being the most effective user of the tools, not simply by owning or building them. Perhaps a more direct example is the advanced workstations that are gaining increased attention in the industry.

There are few direct benefits available to your customers based on the "platform" you use to get your work done. Why would your customers even care?

On the other hand, if workstation technology lets you deliver demonstrably better or more consistent customer service, there is a story to be told.

If the technology appreciably lowers your costs, this financial benefit will doubtless find its way into greater competitiveness. In either case, the real competitive message is found in customer benefits; technology is almost incidental.

It would be unfortunate, in these difficult financial times, to discard technology as a competitive asset. Technology can play that role only where there is sufficient management skill and resolve to get beyond the superficial appeal of computers and new gadgets to the issue of basic customer benefit.

Therein lies a significant competitive opportunity.