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The Weakest Link Is A State Of Mind

0 Comments | This entry was posted on Feb 20 2012

Technology is encroaching on every aspect of our lives and aviation is no exception.  But, technology is only as strong as the weakest link in the value chain.  In aviation, however, the weakest link also happens to be the smartest and most numerous link.

Technological advances in commercial aviation increase airline margins, but technological advances in public information technology decrease airline margins. 

The airlines use data technologies to pack routes tighter in order to maximize their profitability.  On the other hand, the Online Travel Agent (OTA) use data technologies to drive prices downward. Lower prices minimize airline profitability – this forces more packing of airplanes.

This leaves the traveler holding the red tape with the elimination of routes, erosion of service, crowded flights, and the emergence of added fees, etc.  What happens when the traveler “link” snaps?

When the weakest link breaks, new ones form. From Seth Godin

The magic of our new form of communication is that it’s no longer one-way. If you consume an app, you can write one. If you can read a blog, you can publish one. If you can grab an ebook, you can produce one.

The center has nothing to do with geography any longer. The center is a state of mind.

Aikido Air Service 

Aikido is a martial art which uses the principle of non-resistance, moving with the direction of the opponent’s force and redirecting the attack until it is no longer a threat.  Likewise, markets flow in the direction of information.  Wherever there is an “information conflict”, the opening of new information channels can redirect the market to new innovation instead of continued conflict.

The same NextGen technology also makes it easier for smaller airports to have efficient air traffic control, this will reduce the cost of point-to-point travel. The same OTA technology can effectively list smaller aircraft flying point to point as well as ground transportation and hospitality.

The weakest link also happens to a “state of mind”

The next generation online travel agent may publish all aircraft data and ground transportation in a comparable pricing structure so that information can flow in new directions.    The technology of the weakest link simply turns them into strengths by using the opposing forces against themselves.

Social media technology is becoming the dominant marketing tool for on ground events and services and Social Flights is leading that charge. These technologies will change the calculus that the airlines and operators use to optimize aircraft.  That is how the circle will be reversed.

Why Travel Agents Still Matter

0 Comments | This entry was posted on Jan 03 2012

Things are moving very fast in the era of social media. As soon as an airline makes a move, everyone downstream needs to adjust. New applications are built a new competitors form responses.  There is no “book” to read about how to do business in this rapidly changing environment.  So when a customer has a new question for a new situation, they go directly to the Internet to find the answer. And what do they find? Enter the online travel agent (OTA).

From Travel Matter:  Why Blogging Makes Sense for Travel Agents:

Then sites like TripAdvisor entered the industry, allowing travelers to access (and create) user generated reviews of hotels and booking travel became even more of a DIY process, that didn’t require expert guidance. Other sites even let travelers find out which seat on an airplane has the most leg room or which wing of a hotel has better views. Even guidebooks began to show this DIY attitude, as Lonely Planet outsold other publishers.

DYI-mania

As more and more layers of DYI independence are offered up to customer, so too is disinformation, incomplete information, conditional information and thousands of “options” that mask the true value of the travel experience.  It is largely in the best interest of OTA to consume the “time” of the traveler seduced by the promise of low prices.  First, this allows OTAs to impress more ads; and second, the DYI’er eventually get frustrated and click through to the more expensive (profitable) option for lack of time to deep dive through the details, restrictions, and caveats.

The Indispensable Knowledge Resource

All along, the traditional travel agent; once an indispensable resource has fallen by the wayside.  Some argue that the travel agent is to blame for not reinventing their profession from “broker” to “helper”.  Perhaps being technology savvy never entered the profession as it had for so many other professions.  Increasingly, the travel agent skill set is needed.

The Experience Traveler

Travel Agents have the ability to organize people around a set of events, opportunities, locations, and modes of transportation.  The experience of travel is finding it’s way into the value proposition of the decisions that the travelers make.

Everything from social media to Google to Groupon has re-focused consumers’ attention on small businesses, and given local businesses the tools they need to compete in non-local markets.

Few can aggregate local information better than travel agents

If given the right assets, they can put together offerings in anticipation of travelers.  Social Flights is constantly looking for that perfect skill set of location knowledge, transportation knowledge, and concierge service to whom we can entrust an available aircraft asset.

Travel agents can help redefine the door-to-door value proposition and Social Flights is here to help with a full array of private jets and corporate jets for private and public charter for scheduled service between any city pair that one can envision.  We are not the only ones; hotels, experience tourism, conference and events all search for the elusive traveler who has so many options but so little time. Travel agents can now manage a scarce and protected inventory once again where their knowledge, creativity, and social skill matter.