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06/07/2010 | author: Yves
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The Next Wave

In most industries, each new wave of technological capability spawns a new wave of business solutions. Travel and Expense is no exception.

Between the 1960s and 1980s, large transactional mainframe-based systems led to the appearance of Airline Computerized Reservation Systems like American Airlines’ Sabre network and other Global Distribution Systems. This completely changed the nature of travel distribution.

Interestingly, I can’t think of a major breakthrough triggered by the advent of micro-computers and Local Area Networks (LANs), the client-server architecture that prevailed in the ‘80s and ‘90s. There were some Expense Management systems and other applications, but it seems that the fundamentally widespread nature of travel may have been incompatible with the more silo-like capabilities of LANs.

On the other hand, the same period saw the web make a huge difference by enabling new categories of services:

 

  • Travel websites, like Expedia and Orbitz which enabled individuals to buy trips online
  • Information websites, such as fare comparator Kayak, and destination guide TripAdvisor which leveraged social networks to create “user generated content”.
  • Software Booking Tools like KDS, which transformed how corporate travelers arrange their business trips. 

 

Although the Cloud has already brought radical change to the travel landscape, this is not the end of the story. Three further developments are going to impact our industry in a major way:

 

  1. Mobile devices that truly put the power of the web in your hand. The iPhone was the game-changing device in this regard, and other smartphones, such as Android-powered handsets, are swiftly moving to occupy the same space. Thanks to usable browser capabilities and a proliferation of apps, this new mobile era is of huge importance to all businesses.
  2. Mapping and location-based services. Although these can’t be considered disruptive technologies to the same extent as the latest handsets, location is a core capability for enhanced travel services. After all, travel is always about going somewhere.
  3. A number of more subtle developments that I call “The Open World”, which will undo many established business models that depend on ‘locking’ software and hardware functionality. This is a theme I will return to, but, in the meantime, it is well worth reading an article by Tim O’Reilly on The State of the Internet Operating System.

 

These disruptions are significant for established market leaders and also create opportunities for new organizations. At KDS, our mission is to stay on top of such technologies, leveraging them to continually improve our solutions. 

I believe that location and profile will be the next wave. In a short while, when I pick-up my iPhone to book a trip somewhere, my users location and profile are used to create perfect trip experience. For example, every time I go to New York I stay at the W Hotels and eat in Mr Chow’s. I will almost schedule my entire trip around it. So what if my iphone knew as soon as I said New York that my schedule was free on Wednesday and made a preliminary reservation at Mr Chows and also reserved for me three nights at the W Hotels and also arranged for my normal airport transfers.

This is what I would expect my PA to do without even asking me, why can’t my iPhone, powered by KDS do the same – think for me? 

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