Expedia, the first online service provider, was founded in the U.S. in 1996; and started to offer flight, hotel and transfer service over internet. However, the sales boom was reached upon the introduction of dynamic packaging technology. The company, today, continue its operations over 30 countries.
Dynamic packaging helps online tour operators, travel management companies and other traditional travel companies to sell online. Airlines, hotels and tour operators benefit greatly from dynamic packaging technology.
In our contemporary world, internet has been an essential part of our daily life. Internet has also proven itself within the tourism industry recently. The latest development of the internet application in the tourism industry is dynamic packaging applications. The dynamic packaging application which presents opportunity to travel agencies to supply various holiday packages to the consumers in real time provides a competitive advantage. Today, consumers’ demand have changed.
They prefer preparing their own holiday packages to purchasing predetermined holiday packages because they want more personal holidays and think that current pre-determined packages are not flexible enough .More consumers require more individualized, flexible and selectable holiday programs and discover travel products of the online world. One of the arms of the semantic web can be found in the tourism industry as dynamic packaging applications.
Dynamic packaging is one of the most important innovations of online travel agencies. The application was first started by the Expedia; and today it is adopted and applied by many online travel agencies. Dynamic packaging provides consumers to reach multiple services with a single search. Thus, consumers can get lower price than they purchase each independent component individually. At the same time dynamic packaging provides suppliers to hide their discount rates. When we look at the customization feature, there are some customization options in three web sites.
Customers can determine destination or multiple destinations, departure and return dates, departure and return times, non-stop or refundable flights, round trip or one way trip in Expedia. In Travelocity, customers can determine destination, round trip or one way trip, departure and return dates, departure and return times, class of flight and airline alternatives. Customers can also determine destination, departure and return dates, departure and return times, non-stop flights and hotel name in Orbitz.com In today’s world where consumers are far more educated than they were several years ago, the travel industry’s future lies in a customer-driven mix of packages, individual products and self-organized travel. In the last few years, the travel industry has been buzzing with a sizzling new phrase “Dynamic Packaging”. Dynamic packaging helps provide a single, fully priced travel package that hides the price of the individual travel components.
It helps airlines, online travel agencies and tour operators to tap into different supplier systems in real time and bundle travel components (air, hotel, car, entertainment) into a single reservation. This is a seamless process which allows the user to choose from a huge range of travel and associated products from multiple vendors. A rules engine is used to configure and manage the different travel products that can be bundled and priced. These technological developments and changing consumer demands have brought several innovations in the travel industry.
One of these innovations is dynamic packaging application. By means of dynamic packaging application, travel agencies can offer real-time, customized, flexible and secure travel alternatives. On the other side, consumers are able to plan their travels and to make reservation through dynamic packaging applications. Heterogonous data regarding holiday can be gathered through dynamic packaging application so the consumers’ private needs can be meet. Worldwide, it is possible to talk about existence of travel agencies which apply dynamic packaging system. In this Article, Expedia.com, Travelocity.com and Orbitz.com travel agencies’ dynamic packaging applications were investigated. In dynamic packaging applications, choice, customization, flexibility, security and real time features must be found. These characteristics are the main specifications of the dynamic packaging applications distinct from traditional travel packages. As tour operators and vacation packagers continue to understand the value of implementing dynamic packaging technology, travel consumers are reaping the benefits. Travel consumers can now opt to customize vacations rather than accepting pre-packaged alternatives. Empowered travel consumers are exercising more control over their vacations. Dynamic packaging is thus, the most cost effective way for travel distributors to package, distribute and sell vacation products today.