Operators warned over multimedia investment

New technology

Operators warned over multimedia investment

FIRST Choice has warned operators that they face risking millions of pounds on new technology which has yet to make any impact on the marketplace and can reach only a fraction of the public.

Speaking at a meeting of the Chartered Institute of Marketing Travel Industry Group, distribution director Peter Shanks said the industry is caught between throwing money at multimedia booking channels and not knowing how fast it will catch on with consumers.

“There is a huge opportunity but unless we are careful it could end up being very expensive for a relatively small return,” said Shanks. “Unlike start-up companies, we can’t burn money and have to put forward real business plans.

“We need to be confident that a significant number of homes have the technology and will book in considerable numbers. It’s no use delivering it for three people in Birmingham.” Shanks said working to tight margins has also hindered investment, while loyalty to viewdata has been a “barrier” to change.

Shanks also criticised agents for their inconsistent level of service.

“The Internet is fantastic for information gathering and can be better than going to a travel agent,” he said.

Travel Deals Direct commercial director Gary Wardrope also doubted the ability of agents to satisfy customers’ increasing demands.

“Kids in agencies cannot provide the level of service required,” he said.