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in London to discuss an exclusive analysis of tech spending in 2017. Ben Ireland reports
‘Travel innovation held back by lack of collaboration’
A lack of collaboration between travel firms hampers innovation in the sector, Travolution’s expert panel concluded.
Jon Pickles, of The Travel
Corporation, said lessons could be learned from other industries, citing the example of transport app Citymapper, which offers details of bus, train and taxi firms on one platform. He said: “I never travelled by bus
in London until I used Citymapper. We are all time-poor, and we need quick ways of doing things. There is little collaboration like that in travel. Firms want to sell their own product first.” Pickles praised innovation labs, such as BA parent IAG’s Hangar 51 accelerator programme, that link
“There is little collaboration in travel. Firms want to sell their own product first”
start-ups to large companies, as a driver of innovation. “Innovation labs are a good
idea,” he said. “But they cost a lot of money. We looked at it but we wouldn’t see an immediate return on investment, and have so many other things to focus on.” But IBM’s Thierry Gnych said
travel firms were collaborating without necessarily intending to in the wider “ecosystem”. He said: “When we [consumers]
PANEL DISCUSSION: About 80 people attended the Travolution event
plan a trip, we look at TripAdvisor, and when we book, we look at Google or
Booking.com. We switch between travel service providers to get the support we need. “All these companies influence a
customer’s decision.” Gnych also said collaborative
workshops with developers, typically lasting four to eight weeks, were important to make sure tech products were designed to meet a company’s specific needs. He said it was important to “define the human centre of
the outcome”, adding: “Once you’ve defined that, you can implement it.” Travel Counsellors’ Steve Byrne
said: “Within the industry, we can be a little insular. Therefore, we don’t externalise our problems or learn from others in the same game in different sectors. “Individually and collectively, we can do more. We are a reasonably happy and outgoing lot and I think we’d be welcomed by any sector that wants to share its problems and opportunities with us.”
Technology-based companies struggle to recruit
Companies driven by technology are limited by a lack of skills unless they move to a big city, according to some leading travel firms. Steve Byrne, chief executive of Travel
Counsellors, which moved from Bolton to Manchester in 2015, said it was important to create a culture of innovation at tech-focused businesses. “There is a generational shift now about
expectations of a working environment,” he said. “There is no homogenous group of millennials –
everyone is different – but the rules of work have completely changed. We need to think about how we make sure the happiness of the people who work for us and the people who pay our wages – the customers – are met. The two go hand in hand.” Gareth Healy, of private-equity firm Inflexion,
which invested in Manchester suburbs-based On the Beach, added: “[Recruitment] is a real
“You can have a fantastic office but have an appalling culture”
challenge and has changed dramatically in the past 10 years. There’s so much good technology out there, but it’s an arms race." Jon Pickles, of The Travel Corporation, which
recently renovated its offices in Grosvenor Place, London, said: “People want to enjoy their environment”. But he added that the cost of top talent in London had led the firm to outsource technology to Madrid. Byrne said buy-in from management and staff is
more important, adding: “It’s not just the physical environment, it’s the culture. You can have a fantastic office but have an appalling culture.”
STEVE BYRNE: ‘The rules of work have completely changed’
5 April 2018
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