I need software for my travel agency: should I create my own?

This is the question that most travel agents have asked themselves over the past year. The digitalization of the tourism sector is a fact, and new technologies are already another element with a very wide integration both in travelers and in agencies. As an example, since 2014, sales and reservations of flights, hotels and other tourist services through the internet have almost doubled.

Recently, a company in the sector conducted a survey on users of online tourism platforms, and 85% of respondents said that it is very likely (43%) or quite likely (42%) that they would make their reservations with a company whose website has a good user experience.

In this scenario, it is very likely that you have already realized the need to optimize your resources thanks to the automation of numerous functions, while taking a qualitative leap in the service you offer to the clients of your travel agency: you need tailor-made software.

‍So let's return to the question with which we opened this post: should I create my own software? What will it bring me? What are the costs involved? What deadlines should I consider? We'll tell you the pros and cons of this decision.

Tailor-made software advantages

Personalization

‍Developing customized software is undoubtedly the solution to most of your needs: no one like you knows the structure of your agency, knows what its weaknesses are and where it needs to improve. You also know your team, so you know how to distribute the tasks that will arise linked to the new tool.

Control of your business

By managing the entire process yourself, you can control the entire flow, predict costs, etc. Perhaps you have other customized developments that could only be compatible, such as customized software that connects to them, etc. By designing your own tool, you can structure the customer experience 100%, as well as the steps they must take in it.

Reinforce corporate image

Do you want to call the software with the name of your company? Will your logo be present on every page? Would you like to enter photos of each member of your team? Go ahead! This is your golden opportunity to reinforce your company's image by customizing the interface. In addition to ensuring that the corporate brand will not go unnoticed, you can customize the look according to your own design manual.

However, it's not all advantages. Here are some of the main drawbacks that you should definitely consider if you are considering taking this leap towards the digital company:

Disadvantages: custom software

High costs

To purchase your own program, you will need to make an initial investment to hire a developer to structure and create the software according to the parameters you indicate. But ordering software isn't like ordering furniture: features aren't drawers that you can open and close the first time. Software requires complex technical development followed by a test phase during which errors are identified and all product features are tested.

Some of the developments that entail a greater cost for agencies are these (and surely more than one sounds familiar to you): first of all, connect your Backoffice with that of that new wholesaler with whom you are going to collaborate; secondly, integrate the software with the accounting program you are using. In this sense, it is normal for your provider to work with a lot of volume and cannot be involved in the connection process, which will further complicate the process in terms of time and costs. Finally, other developments that tend to be costly have to do with introducing the new functionalities that the market is in demand: digital signatures in combined contracts, for example. As a reference, we can easily estimate these costs between €50,000 and €80,000. Add and follow.

Deadlines

How long are we talking about? On average, a team of own developers needs between one and two years of work for a software to be ready for use by customers. To this deadline, we must add the necessary adaptation period for your staff to learn to master the program. But this is far from the end of your contract with the technical team: software requires constant maintenance, either to correct errors or to implement necessary updates. A program of these characteristics is not a closed element (a drawer in a piece of furniture), but a flexible and growing space that is at the mercy of numerous technical variables. This forces us not to lose sight of the technological base that supports it, since a minimum error in the configuration of the software or an uncontemplated downupdate can ruin numerous sales. The digital customer is very demanding and does not usually give second chances if the technical base fails.

Need for technical knowledge

Creating your own software from scratch requires certain technical knowledge. Although it will be a developer who designs, launches and tests it, it is always absolutely necessary that internal staff be able to react to any technical incident. And your business is selling trips and contacting customers and suppliers, not programming apps. You don't need to be an expert, but you will undoubtedly find that you need certain knowledge in storage systems, cloud native applications or counteracting hacking attempts, for example. Don't forget that technologies change rapidly.

Other solutions

‍Without a doubt, proprietary software is desirable, but difficult to hire, develop and maintain for agencies of all sizes. Fortunately, in recent years, the online market has offered us numerous SaaS (software as a service) options that adapt to the needs of most travel agencies. If the services offered by our agency are standard, we can implement some of the software available in the market in a simple and coordinated way.

This way, instead of allocating part of your budget to creating and maintaining internal software, you can use those funds to improve your value proposition. For example, improving the category of hotels you usually list, innovating in new destinations, hiring more support staff to take care of customers, investing in marketing campaigns that attract new prospects, etc.

‍What should I consider when choosing software?

‍ - The first thing is to look for one that is specific to travel agencies. Ideally, it should have a team that knows the tourism sector very well, in addition to having a powerful technological base. After all, it is necessary to be part of the market in order to digitize it.

- Do a prior and detailed analysis of your needs, and look for software that answers all of them. A striking interface is of no use to you if the app doesn't include the management of direct payments, for example.

- Think about your customers. This software is not only a tool for your team, but also an investment in building the loyalty of your travelers. What added value does it bring to them? Look for a system that allows you to establish a link with them and provide them with solutions also during and after the trip.

We recommend that before making a decision about which software to choose, you take a look at all of them the features offered by MOGU, they will not leave you indifferent! Request your free trial today and let us know what you think.

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