NEWS IN BRIEF Vibe Software forecasts Hugo Burge (right), Momondo
‘Metasearch spurs change but packages hard to crack’
Price-comparison sites are driving change in travel but are not expected to become the dominant driver of leads as they grapple with the complexity of packages.
Just a handful companies
globally are grasping the opportunity of price comparison, or metasearch, according to Hugo Burge, chief executive of Cheapflights parent Momondo. Asked if metasearch could become the next dominant lead generator for travel firms, following channels such as Teletext Holidays and latterly Google, Burge said: “It’s a mixture. Nobody wants to be overly reliant on one channel. “Most of our partners are multi-channel players and work across meta, Google and social media. Metasearch offers an advantage as it’s more transparent and simple for consumers.” Burge said Cheapflights, which
adopted metasearch functionality in the UK last year to complement its deals-publishing operation, would love to do more in the holiday package sector. But he said it was more
complex than single-component price comparison and had to be
“My focus is on building a kick-ass business that is in control of its destiny”
approached “market by market”. “That isn’t to say there isn’t
an opportunity for packages,” added Burge. “Cruises and packages do very well through our deals‑publishing business.” Burge revealed Momondo
would consider a stock market
flotation in the coming years. The group was valued at £132 million after attracting an £80 million investment from Boston-based Great Hill Partners in October 2014. “When they invested in us they had a clear goal of trebling the value in three years,” Burge said. “We’re on track to do that and I believe we can do much better. “I’d like to have the opportunity
to stand on our own two feet and potentially float the business. But first my focus is on building a kick‑ ass business in control of its destiny.”
Virtual card tech helps agents’ cashflow
Virtual card payment technology is helping leisure and corporate agents offer the best service and prices while protecting their cashflow, according to virtual payments specialist Wex. Wex provides single-use card numbers, meaning agents can move
away from corporate credit cards that are susceptible to fraud and extra costs. Lee Jackson, Wex head of travel Europe, said virtual cards allowed online agents to offer low-deposit deals to secure early bookings like traditional tour operators. Agents packaging holidays including low-cost carriers have to pay the carrier upfront and must also protect all client cash in a trust. “The customer wants to secure their holiday at low cost,” said Jackson. “Therefore the agent has to take on risk in funding that air fare. Using virtual cards means you cover the exposure in terms of cashflow.”
£500m in transactions Vibe Software expects to see a record £500 million worth of transactions on its travel technology systems this financial year, having taken on new clients. The technology firm has recently launched sites for The Guardian and Qatar Airways. However, Vibe’s longstanding partnership with supermarket giant Asda has ended after eight years.
Open Destinations
launches Travel Builder Tour operator software provider Open Destinations has unveiled a simplified version of its core Travel Studio system, called Travel Builder. Phil Napleton, senior vice-president of products and professional services, said Travel Builder, a Software as a Service system, will benefit small firms which don’t have big in-house IT teams.
Bd4travel scoops disrupt
award at TTE exhibition Bd4travel followed up winning the Travolution Start-up of the Year 2015 accolade by winning the TTE 2016 Disrupt Award. A specialist in technology to aid personalisation, the firm was co-founded in Germany by former Traveltainment chief Andy Owen Jones. Bd4travel has started collecting consumer data in the UK and said it was in talks with “two or three” potential clients here.
Traveltek attracts new
business from overseas Glasgow-based travel systems developer Traveltek is seeing the greater proportion of new business coming from overseas as it looks to open more offices outside the UK. The firm, which is hoping to secure new private equity funding to drive further expansion, says 60% of new business growth is non-UK, meaning about half of its business is now in the UK and half overseas.
3 March 2016
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