I recently gave a presentation at a travel trade conference in Germany.
There, the market is like that of the UK five years ago. Agents still wield a great deal of power, there isn’t the same proliferation of credit cards, low-cost airlines seats are sold via global distribution systems and the market hasn’t fragmented to anything like the same extent as over here.
In Germany, distribution channels remain largely unchanged with operators still replicating the two distinct business models we saw in the UK five years ago. The two types of holiday means two reservation and management systems, and never the twain shall meet.
Or will they? Even the German market is changing. The pressures of the Internet, low-cost airlines, bed banks and shorter duration holidays are slowly but surely altering the travel landscape.
In addition, the recent mergers – Thomas Cook tying up with MyTravel, and TUI with First Choice – will bring a different perspective on their future strategy.
German travel industry players could learn lessons and avoid some of the pain the UK trade has endured.
Resistance to investment in technology is staggering and the tendancy to bolt products on to ageing systems still prevails.
German operators could do themselves a favour and look at their systems now. The move to a hybrid tour-operating model will be a lot less painful now than in the future.
UK operators began the process of complete system replacement 18 months ago. Will other markets react any quicker or will history repeat itself?