AI and Travel Advisors - A Must Read

 


From Satellite Communications to Artificial Intelligence

Written By: Tom Ogg, Co-Founder and Co-Owner - FindaHostTravelAgency.com

The History of Travel Industry Disrupters

During my almost 60 years in the travel industry, there have been several events that changed the travel industry in ways where some travel agents grew their business while other agencies closed their doors. AI is just another opportunity in disguise of a disrupter. Following are some of the major disrupters that have happened in the travel industry over the last 50 years.

 Satellite Communications: When satellite communications enabled hotels in Hawaii to get toll-free reservation numbers it devastated companies like Hawaii Hotel Marketing over night. It also spawned Hawaii FIT operators like Classic Hawaii, Runaway Tours and so on.

Satellite Communications When the CRS was made available to agencies it enabled those that were able to acquire them to succeed. Agencies that were still handwriting airline tickets failed over time. The availability of personal computers allowed some agencies to automate much of their operation and gain efficiencies.

E-tickets and Direct Settlement: E-ticketing and direct settlement changed the very nature of the airline ticketing business. In essence the travel agency business provided documentation and settlement services for the airlines. When e-tickets and direct settlement eliminated the need for the services to be provided by independent travel agencies evaporated.

Elimination of Airline Commissions: As e-ticketing and direct settlement evolved, airline commissions were reduced and then completely eliminated. This caused many retail storefront travel agencies to go out of business. It also founded the evolution of home-based travel agencies. It was truly an incredible time.

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