Is your travel business resilient enough to handle the next pandemic?
25 JUL 2023

Is your travel business resilient enough to handle the next pandemic?

The COVID-19 pandemic has profoundly impacted the global tourism industry, challenging its foundations and forcing businesses to navigate uncharted waters. The crisis has presented unprecedented challenges for travel companies worldwide, from travel restrictions and lockdowns to plummeting demand and heightened health and safety concerns. However, amidst the turmoil, a concept has emerged as crucial for the industry's survival and future prosperity: resilience.

Having resilience means having the ability to endure and overcome tough situations, adapt to changes, and emerge even stronger. For our travel industry, resilience is not merely about bouncing back from the current crisis but also about building a foundation that can withstand future challenges.

In addition to operational adaption, such as new safety procedures, optimisation through digitalisation is crucial for travel businesses during times of falling demand. While numerous safety procedures were developed during the COVID-19 pandemic, using digitalisation to optimise costs and increase margins remains an area of untapped potential.

By embracing digital transformation, travel industry players can not only withstand the challenges of the present but also position themselves for a brighter future. Through this article, we will delve into the specific ways in which digital transformations available today enable companies to thrive in the face of adversity, offering examples and insights into how digital technology can become a powerful ally in the journey toward travel industry resilience.

Automation and Efficient Operations play a significant role in building resilience within the travel industry. By leveraging digital solutions, businesses can optimise their processes, reduce costs, and position themselves to weather future storms.

Automation of booking management is a key driver of efficiency and resilience. With advanced booking engines and automated sourcing systems, travel retailers can automate the end-to-end booking process. This automation not only saves time and improves customer satisfaction but also strengthens the ability to respond swiftly during periods of disruption. In the face of future pandemics or rapidly changing circumstances, the ability to efficiently manage bookings becomes essential for business continuity and maintaining seamless customer experiences.

Moreover, tools like ANIXE’s Resfinity API provide additional customisable options for the automation of hotel sourcing and booking management, which increase the resilience of the customers who employ it. This innovative solution enables businesses to easily switch suppliers based on country, city, and even hotel, in normal times providing unparalleled business logic options. However, in times of market disruption due to pandemics or other unforeseen events, users can simply switch off destinations with the strictest travel restrictions to proactively avoid future cancellations and mitigate customer dissatisfaction.

By incorporating ANIXE's Resfinity API into their operations, travel businesses gain the agility to swiftly adapt their supplier network and reduce risks associated with market uncertainties. With a remarkable degree of automation and adaptability on the market, travel businesses have the power to overcome challenging times, enhance their revenue streams, and guarantee the satisfaction of their customers.

Load management empowers online travel businesses to adapt swiftly to fluctuating demands and optimise their resources. By accurately predicting traffic patterns and estimating infrastructure requirements, companies can avoid overpaying for unused resources and align their infrastructure to match the specific demands they face. This fine-tuning capability enables businesses to enhance their cost optimisation strategies and improve overall operational efficiency.

Load management is not only a powerful tool for optimising resources and adapting to fluctuating demands but also a crucial element in building resilience, particularly during unprecedented times such as pandemics. With the ability to accurately predict traffic patterns and estimate infrastructure requirements, load management empowers travel businesses with the flexibility to quickly adjust their operations and resources in response to rapidly changing circumstances. During a pandemic, when travel restrictions and market uncertainties disrupt the industry, load management becomes even more essential. It allows companies to scale down their operations efficiently, reducing costs and avoiding overpayment for unused resources. This flexibility not only helps businesses weather the storm but also positions them to effectively manage future disruption and rebound of demand.

ANIXE's load management service provides the necessary tools and capabilities to enhance resilience in the face of the unpredictable. By enabling travel businesses to fine-tune their web traffic load and allocate resources effectively, the service empowers companies to navigate through market uncertainties, such as future pandemics or other unforeseen events. This proactive approach to resource management strengthens the industry's ability to withstand and recover from black swan events, ultimately ensuring continued success and customer satisfaction.

Yield Optimisation is a concept that empowers travel retailers to maximise their profitability by continuously seeking better and better deals. When a travel product is sold, the yield optimiser diligently searches for the exact same offer from all connected suppliers. If a better offer is found, the system automatically cancels the original booking and rebooks at the lower price. This innovative approach allows travel retailers to gain bigger margins as they keep the difference in price.

Yield Optimisation builds resilience within the travel industry by providing a crucial financial advantage, especially during periods of restricted demand. In times when every penny counts to keep travel businesses afloat, the ability to secure better deals and increase profit margins can make a significant difference. By leveraging Yield Optimisation, travel companies can optimise their revenue streams, improve financial resilience, and stay competitive even in challenging market conditions.

ANIXE's Yield Optimisation solution not only maximises profitability but also prioritises customer satisfaction and reliability. The intelligent algorithm incorporated within the system ensures a fail-safe mechanism, guaranteeing that the old booking will never be cancelled until the new booking is confirmed by the supplier. This means that customers will never lose their bookings or experience any disruptions during the rebooking process. This commitment to providing a seamless and secure experience for both travel businesses and their customers further enhances the resilience of the industry. With ANIXE's Yield Optimisation, travel businesses can confidently optimise their profitability while maintaining the highest level of customer satisfaction and loyalty.

Diversification of suppliers and distributors is a crucial digitalisation strategy that enhances the resilience of travel companies. Through digital connectivity, seamless connections can be established between travel product suppliers and retailers worldwide. This digital ecosystem allows travel businesses to expand their network of suppliers and retailers, reducing the risk of overreliance on a few partners.

Therefore, diversification plays a pivotal role in building resilience by providing a lower risk of losing all suppliers or retailers in events such as the COVID-19 pandemic. By diversifying distribution and supply channels, travel businesses can effectively spread the risk and ensure continuity of operations. If one supplier or retailer is unable to operate, having a diversified network allows other partners to step in and fill the gaps, mitigating disruptions and minimising revenue loss.

ANIXE's Resfinity API empowers travel retailers with the capability to achieve supplier diversification. By leveraging Resfinity API, retailers gain seamless access to a world of wholesalers, bedbanks, and DMCs. This diverse network of suppliers enables businesses to broaden their reach and establish robust partnerships with a global presence. Likewise, for suppliers, ANIXE offers a gateway to connect with the largest travel retailers worldwide. This digital connectivity ensures wider distribution and increases resilience by expanding the opportunities for collaboration and business growth. With ANIXE's Resfinity API, travel businesses can embrace supplier diversification as a strategic advantage, fostering resilience and adaptability in the face of market uncertainties.

In conclusion, digital transformations are essential for travel businesses to build resilience in the face of future uncertainties. Automation, efficient operations, load management, yield optimisation, and supplier diversification are some of the key strategies that enable travel businesses to adapt swiftly to any changing circumstances.

If COVID-19 taught us anything, it is that we must always be prepared for the unexpected. Being resilient to the next black swan event is crucial for the survival of not only individual companies but the whole travel industry at large.

Contact ANIXE today to see how we are championing resilience in our industry and how we can help you prepare and prosper in the face of the next global challenge.

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Tags:supplier managementhotelstraveltechbooking enginetravel apiload managementtravel industryyield optimisationtravel technologysoftware developmenttechnology for travel and tourismpandemicsupplierssuppliers per destinationstay strongcoronaviruscovid19