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.
In today’s competitive market scenario, organizations increasingly understand the importance of building and effectively managing the relationship with its passengers. For building and maintaining a healthy relationship with the passenger, organizations need to understand and meet the expectations of its passenger. The organizations today should aim not only at delivery of the service to the passengers, but should also focus on satisfying the passengers with the service. Thus it has become imperative for organizations to identify factors that cause passenger satisfaction or dissatisfaction and consciously measure them so as to try and bring about the necessary changes on the basis of passenger perceptions. The 21st century is considered as the service industry century. Service industry is growing at a rapid pace across developed and developing countries. There are many definitions of what constitutes service. During the last two decades, the commercial aviation industry in India has seen more growth due to the increase in number of people traveling by air and thus has given rise to the need of more aircraft maintenance. The corporate or business flying has also seen phenomenal growth, as the business houses have grown and first generation entrepreneurs have created wealth with the growth in economy. An airline is a company that provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit. Generally, airline companies are recognized with an air operating certificate or license issued by a governmental aviation body. Airlines vary from those with a single aircraft carrying mail or cargo, through full-service international airlines operating hundreds of aircraft. Airline services can be categorized as being intercontinental, intercontinental, domestic, regional, or international, and may be operated as scheduled services or charters. Airlines vary from those with a single airplane carrying mail or cargo, through full-service international airlines operating many hundreds of airplanes. Airline services can be categorized as being intercontinental, intercontinental, regional or domestic and may be operated as scheduled services or charters. Though India became popular as a destination for holidays, Indians started to travel outside the country more often; the primary source and destination countries continued to remain the same. This is attributed to the fact that these countries are mainly where many Indians’ relatives live, or are relatively more affordable for consumers to travel comfortably. All the leading companies, whether in air transportation, lodging or travel retail, introduced their own mobile applications for both Android and iOS, the two most popular operating systems in the country. The apps became very popular as they allowed consumers to make bookings on the go, even when internet connectivity was weak. Leading Travel agencies have become quite popular among the young urban consumer base who are more willing to try new concepts and are looking for cheaper accommodation options, so that they are able to travel on a budget. Smartphone penetration has registered strong growth since 2009 in India. This is expected to continue over the forecast period. The penetration of internet-enabled smartphones is higher than any other mobile device in India. This combined with the convenience that mobile travel booking offers and the number of discounts available, will drive the growth of travel sales over the forecast period 2015-2019. India’s civil aviation industry is on a high-growth trajectory. India aims to become the third-largest aviation market by 2020 and the largest by 2030. The Civil Aviation industry has ushered in a new era of expansion, driven by factors such as low-cost carriers (LCCs), modern airports, Foreign Direct Investment (FDI) in domestic airlines, advanced information technology (IT) interventions and growing emphasis on regional connectivity. India is the ninth-largest civil aviation market in the world. “The world is focused on Indian aviation – from manufacturers, tourism boards, airlines and global businesses to individual travelers, shippers and businessmen. The first commercial flight in India took-off in , 1911, when a French pilot Monseigneur Piguet flew airmails from Allahabad to Naini, covering a distance of about 10 km in as many minutes. Tata Services became Tata Airlines and then Air-India and spread its wings as Air-India International. The domestic aviation scene, however, was chaotic. When the American Tenth Air Force in India disposed of its planes at throwaway prices, 11 domestic airlines sprang up, scrambling for traffic that could sustain only two or three. In 1953, the government nationalized the airlines, merged them, and created Indian Airlines. For the next 25 years JRD Tata remained the chairman of Air-India and a director on the board of Indian Airlines. After JRD left, voracious unions mushroomed, spawned on the pork barrel jobs created by politicians. In 1999, A-I had 700 employees per plane; today it has 474 whereas other airlines have 350. The aviation sector is one of the major economic drivers for prosperity, development and employment in any country, we know it. The rapidly expanding aviation sector in India handles near about 2.5 billion passengers across the world in a year and moves 44 million tons (MT) of cargo through 920 airlines, using 4,200 airports and deploying 27,000 aircraft’s in the world. Today, 87 foreign airlines fly to India and from India five Indian carriers fly to foreign countries and from 40 countries. Conclusion is The online medium – the Internet, represented by online travel agencies and Websites in the airline business, is today a powerful revenue generator for airlines. As indicated by market research data, almost 75 percent of air tickets today are bought online. e-Commerce and automation of business processes such as web check-in have largely enhanced the convenience of air travel. Added to that is the increasing popularity of the smart phone, which is expected to play an active role in customer relationship management and revenue generation in the time to come.