In the travel industry, tour operators play a critical role by masterminding, arranging, and marketing travel packages, which they either sell directly to travelers or offer to agents for resale. The behind-the-scene work of a tour operator is extremely diverse and complex and involves versatile parties for the ecosystem to deliver the best experience to end customers, i.e., travelers.
In the coming years, we expect to witness a significant increase in revenue in the global travel and tourism market. By 2025, revenue is estimated to reach US$955bn and is projected to grow annually at a rate of 3.90%, resulting in a market volume of US$1,114bn by 2029. This is further supported by a growing revival of international travel compared to domestic travel which led the rebirth in the post-pandemic initial period, with airlines surpassing the pre-pandemic capacity. The growth reflects the rising demand for unique travel experiences, particularly post-COVID-19.
That is exactly why, as competition intensifies, tour operators must adopt advanced travel software solutions to modernize their operations and, simply put, earn more money. You may have the best offers and most attractive prices but as long as you use bulky legacy software with a horde of additional subsystems, integrations, and duplications, your efforts have all the chances to bring the bear minimum only.
Here are key components and milestones you should take profound consideration when the time comes to take your tour operator software to the next level.
1. Establish a Reliable Back-Office System
A fully functional back-office system manages your bookings, user roles, sales rules, and customer service processes. It serves as the central hub for all travel-related inventory, from accommodation and flights to excursions and car rentals. For example, the back-office module in GP Travel Enterprise is designed to centralize booking storage and optimize availability tracking, which simplifies the management of resources like room or seat allocations.
When selecting back-office software, focus on:
- Modern Technology Stack: Choose technology like Java, Python, or C#, which are widely used for designing scalable applications.
- Flexible Architecture: Consider layered, microservices, or event-driven architectures for agile performance under heavy loads.
- Scalability and Customizability: Opt for modular solutions to easily add functionalities, and ensure it can integrate with external applications or APIs.
2. Implement a Booking Engine and a Payment Processing System
Travel booking software is fundamental for converting inquiries into reservations, integrating with inventory databases to provide real-time product availability. To suit your business model (B2B, B2C, or both), the booking engine should support customizations and API integrations, whether for individual bookings or agency sales.
A high-functioning booking engine should include:
- Flexible Search and Booking Options: Allows customers to filter and choose travel components.
- Seamless Payment Processing: Integrates payment gateways like Stripe, PayPal, and region-specific options, supporting varied payment methods, including mobile payments and cryptocurrencies.
3. Efficient Inventory and Supplier Management
A well-organized supplier management system is essential for tour operators that rely on external vendors for inventory. This includes hotels, airlines, transfer providers, and activity organizers. API integration with suppliers ensures smooth booking processes, real-time inventory updates, and status confirmations. Alternatively, some operators may use a centralized API aggregator like GP Travel Hub to connect with multiple suppliers through a single interface.
GP Travel Hub is a unified API aggregator of diverse travel product suppliers
4. Develop Tools for Building Travel Itineraries
Travel itineraries are a critical component of a tour operator’s service, combining diverse elements such as accommodation, flights, and activities into a single package. To streamline this process, many operators use dedicated itinerary management tools, either as part of an ERP system or standalone. These solutions provide real-time access to travel components, intuitive interfaces for arranging trip elements, and optional destination content for an enriched experience.
5. Prioritize Customer Management
Efficient travel CRM is increasingly vital for personalized service and retention. A well-integrated CRM module automatically creates customer profiles, tracks interaction history, and manages communications. Some tour operator platforms include built-in CRM, while others integrate with standalone CRM systems for enhanced features. In both cases, API connectivity ensures smooth data flow between systems.
Travel CRM Functionality
6. Maintain an Optimized Website and Content
A user-friendly website that supports intuitive booking flows is absolutely necessary for direct sales. Integrate your website with the booking engine to allow real-time reservations and consider using a content management system (CMS) to create and distribute digital content. Collaborate with content providers (such as GIATA or ArrivalGuides) for up-to-date travel information, or use a CMS like WordPress or Joomla for streamlined content creation.
7. Enable Accounting and Analytics
Effective accounting and analytics tools are critical for managing finances and tracking performance. Tour operators can choose between using a built-in accounting module within their software or integrating with standalone platforms for specialized functionalities. Analytics modules should offer customizable dashboards and reports for insight into revenue, expenses, and customer preferences.
8. Additional Integrations for Enhanced Functionality
To maximize functionality, consider integrating your tour operator software with third-party solutions like review platforms, POS systems, or customer support tools. Localization, security compliance, and a free trial period to test compatibility can further refine the software’s effectiveness.
Off-the-Shelf Software vs. Custom Solutions
Tour operator software is a complex system by default, and as a tour operator, you may face the dilemma of buying a ready-to-go software solution or signing up for custom software perfectly aligned with your needs.
For larger operators with specific workflows, custom software development may offer the flexibility needed to meet unique business requirements. Conversely, off-the-shelf solutions can often meet the needs of small to medium-sized operators with modular setups and integration options. A balanced approach is to combine ready-made software with custom-built elements, such as a custom booking engine paired with standard accounting and CRM tools.
