| You may not have noticed, but
ETDNs (Electronic Ticket Distribution Networks) died earlier this year.
Surely you remember them: ETDNs were supposed to be everywhere, lower
agency distribution costs, give small agencies the chance to use
technologies and compete against larger agencies, and somehow improve
customer service.
Several large companies were actively involved in
prompting them, including SABRE and Mail Boxes, Etc., with numerous
other large and small companies on the fringes. According to Travel
Weekly of July 14, 1997 there are only six ETDN sites earlier this year
and only one company still talking as though they have a future.
My, but we've come a long way from the time I was
among a very few who said the ETDN phenomena didn't make sense. Not many
years ago the ETDN sessions were SRO at industry conferences, while
panels of experts predicted their bright future, and committees with
dozens of members met to discuss what standards should be set for their
operation.
This ETDN obituary is written in the "what can we
learn" spirit. Not only were ETDNs a distraction from more
meaningful projects but the same claims are now made for Internet-based
commerce—and many of the same problems still exist.
The big ETDN problem from the start was that there
were no hoards of customers clamoring for them. Its hard to rationalize
that any business traveler, for instance, would view hunting down an
ETDN and managing to make it work as a service improvement, when the
alternative is a ticket delivered to their desk.
Comparisons were frequently made between ETDNs and
ATMs used by banks, but these never held-up. People forget that only in
the last few years did ATMs become "universal" and
enthusiastically embraced.
ATMs teach us that there is a convenience factor the
public wants, but the transactions must be simple and the networks fully
developed. ETDNs never came close on either account.
Electronic ticketing certainly didn't help ETDNs. A
few moments thought reveals that the fundamental airline ticket hasn't
changed in 60 years and tickets could be considerably simplified or
eliminated. Even so, ticketless is not the same as paperless and there
might have been an ETDN role if the public has wanted one.
Similar criticisms can be made against electronic
self-booking tools. There is a hard-core of "do-it-yourself"
enthusiasts that are motivated to handle their own travel online (these
are the same people who stand in line at the ATM when the bank lobby is
empty), but the large, long-term customer markets proponents talk about
are pretty vague and poorly understood.
How easily we forget that people have been able to
reserve travel online for around 13 years if they really wanted to; most
have not.
Whether ETDNs, self-booking systems, or Internet
commerce, the allure of technology and vast untapped markets is very
compelling. There will always be start-up companies, experts, and
wishful-thinkers available to get behind new tools promising big
payoffs.
Enthusiasm cannot displace commercial realities,
however. Technology enables powerful tools but nether travel technology
nor tools are the great equalizers that make effective competitors.
Clearly electronic commerce has great potential, but that is not the
same as saying that many current concepts, proposals, and products have
a future.
Very few products or new businesses are built upon
strategic plans or opportunities. Much more often people see a need and
fill it.
Technological challenges aside, ETDNs went nowhere
because that "need" wasn't well understood. Hopefully the
current generation of travel technology companies will learn from the
mistaken enthusiasm of the past and produce more practical products. |