Buy or Build: The Travel Management and Reservation Software Dilemma.
In today’s rapidly evolving travel industry, the choice between building your own travel management and reservation software or purchasing an existing solution is a critical decision. As the market becomes increasingly competitive, the right technology can be the key to providing superior service, enhancing customer experiences, increasing productivity and maintaining a competitive edge. But how do tour operators, villa operators and travel agencies decide whether to build or buy? Let’s explore the pros and cons of each approach to help you make an informed decision.
The Case for Building Your Own Software
1- Tailored to Your Specific Needs
One of the most compelling reasons to build your own travel management and reservation software is the ability to tailor it precisely to your business’s unique requirements. Off-the-shelf solutions often come with features you may never use or lack the specific functionalities you need. By building your own software, you can design it to fit seamlessly with your processes, ensuring that every aspect of the system is aligned with your business goals. Always ensure you have thoroughly defined your requirements and understand all the functionality and complexity that you will have to cover within your business and the scope of what you are building is well defined.
2- Competitive Advantage
Custom-built software can provide a competitive edge by offering features and functionalities that your competitors may not have. It allows you to innovate and offer features that your competitors may not have. Whether it’s a unique booking process or your business offering is particularly innovative, a bespoke system can help you stand out in the crowded travel market.
3- Scalability and Flexibility
When you build your own software, you have full control over its scalability and future development. You can prioritise the features you need now and add more complex functionalities as your business expands. Pre-built solutions sometimes may not offer the same level of customisation or scalability. However, you will need to factor in the ongoing maintenance, security upgrades and future market developments into your business planning and budgeting.
4- Ownership and Control
Building your own software means you own it outright. You have complete control over its development, updates and integration with other systems. There’s no need to worry about vendor lock-in, licensing fees or the risk of your software provider going out of business or discontinuing support for the product.
The Case for Buying Software
1- Speed to Market
One of the most significant advantages of buying an existing software solution is the speed at which you can implement it. Building software from scratch is a time-consuming process, often taking months or even years to develop, test and deploy. In contrast, purchasing an off-the-shelf solution allows you to get up and running quickly, which can be crucial in a fast-paced industry like travel.
2- Breadth of Functionality
Existing systems often serve multiple customers with businesses similar to yours, meaning they come equipped with a wide range of functionality to support various use cases. This can enable your business to grow more quickly or diversify your products or markets and respond to changing market conditions.
More modern systems like Erin can be highly customised to meet your specific requirements, allowing you to leverage existing technology while incorporating unique features that set you apart from the competition and help you maintain a competitive edge.
3- Cost-Effectiveness
Developing custom software requires a substantial upfront investment. You need to factor in the cost of hiring developers, project managers and testers, as well as ongoing maintenance and support. Buying software, on the other hand, usually involves a lower initial cost, with predictable licensing or subscription fees. For many this can be a more cost-effective solution. The savings over the lifetime of the system can be substantial when you factor in ongoing maintenance and development, security upgrades and functionality enhancements which can be included in the licensing fees of a system such as Erin.
4- Proven and Reliable
Commercial travel management and reservation software solutions are often well-established and thoroughly tested. They come with a track record of reliability and performance, giving you confidence that the software will function as expected. Additionally, these solutions are usually backed by dedicated support teams and regular updates, ensuring that your system remains up to date with the latest industry standards and security protocols.
5- Focus on Core Business
By purchasing software, you free up your internal resources to focus on your core business activities. Developing software in-house can be a significant distraction, especially if you don’t have a dedicated technology team. By outsourcing this aspect to a trusted provider, you can concentrate on what you do best- providing exceptional travel experiences and growing your business.
Key Considerations
When deciding whether to build or buy your travel management and reservation software, there are several key factors to consider:
- Budget: What is your budget for software development or purchase? Can you afford the initial investment and ongoing costs associated with building custom software?
- Timeframe: How quickly do you need the software in place? Do you have the luxury of time to build a solution from scratch or do you need something operational as soon as possible?
- Resources: Do you have the in-house expertise to develop and maintain software or would you need to hire additional staff or consultants?
- Long-Term Goals: Consider your long-term business goals. Will the software need to evolve significantly over time? How important is it for the software to be a differentiator in your market?
Conclusion: Making the Right Choice for Your Travel Business
The decision to build or buy travel management and reservation software is not one-size-fits-all. It depends on your specific business needs, resources and strategic goals. If your business requires a highly customised solution and you have the time and resources to invest, building your own software might be the right choice. On the other hand, if you need a reliable, cost-effective solution that you can implement quickly, buying an existing software platform like Erin could be the smarter option. It may be a hybrid approach utilising some of the key existing functionality of Erin and combining it with bespoke elements is the best way to deliver the perfect solution for your business!
Ultimately, the best decision is one that aligns with your business objectives, ensuring that you have the right tools to manage and scale your operations effectively. Whatever path you choose, the right software solution will be instrumental in driving your success in the dynamic and competitive travel industry.
At Travel Technology Systems Ltd., we’re here to support you no matter which path you choose. Whether you opt to buy or build, our team can provide the expertise and solutions you need to succeed in the competitive travel industry. If you’re leaning towards buying, we invite you to explore Erin, our software platform that’s been crafted with the needs of travel businesses like yours in mind. Erin consolidates inventory from multiple suppliers, affording you complete autonomy to craft bespoke travel packages encompassing quotes, bookings and itineraries. Seamlessly manage pricing and availability across a wide range of online and offline channels. Erin also interfaces directly with payment gateways and third-party APIs, such as GDSs.
Interested in knowing more? Contact us today to see how Erin can help simplify your travel management and reservations or to discuss your custom development needs.
Frequently Asked Questions
1- How much would it cost to build custom software versus purchasing Erin?
Building Custom Software:
- Upfront Costs: Developing custom software requires a substantial investment in development, including costs for hiring developers, designers, project managers and testers. Depending on the complexity, this could be significant.
- Ongoing Costs: After the initial build, you’ll need to budget for maintenance, updates, bug fixes and potential upgrades. Additionally, if you don’t have an in-house IT team, you’ll need to pay externally for ongoing support and hosting services.
Purchasing Erin:
- Upfront Costs: Erin offers a more predictable cost structure with a lower initial investment compared to custom development. The cost typically includes an initial set up fee and monthly licensing fee, which covers the software, support and updates.
- Ongoing Costs: With Erin, you pay regular licence fees that are transparent and predictable, the price tier you’ll fall into is based on the size of your business and the features you need. This includes regular updates and customer support, reducing the risk of unexpected expenses.
2- What are the specific features of Erin that could benefit my business?
Erin is designed to meet the diverse needs of travel businesses, with features that can streamline operations and enhance customer experiences. Some of the key features include:
- Centralised Booking Management: Manage all bookings, cancellations and modifications from a single platform, improving efficiency. You can manage your own stock and contracts within the platform or integrate with 3rd parties.
- Customisable Itineraries: Create tailored travel itineraries that can be easily shared with clients.
- Real-Time Availability: Check availability and make bookings in real-time, ensuring up-to-date information.
- Integrated Payment Processing: Secure payment gateways integrated into the platform to streamline transactions.
- Reporting and Analytics: Access to detailed reports and analytics to track performance, sales and customer trends.
- Customer Relationship Management (CRM): Manage customer data, preferences and communications within Erin or integrate Erin with your existing CRM.
- Multi-Language and Multi-Currency: Ideal for international operations, Erin can operate multiple languages and currencies.
3- How long would it take to implement Erin compared to building a custom system?
Implementing Erin:
- Timeline: Erin can be implemented quickly depending on the complexity of your setup and the level of customisation required. The process includes configuration, data migration and training but it is generally far faster than building a system from scratch.
Building Custom Software:
- Timeline: Developing custom software can take several months to years, depending on the scope and complexity. This timeline includes phases like planning, development, testing and deployment. Delays are common, particularly if new features or changes are introduced during development.
4- Can Erin be customised to meet specific needs or integrated with existing tools?
Yes, Erin is designed to be flexible and customisable:
- Customisation: While Erin is an off-the-shelf solution, it has the advantage of being highly customisable giving a wide range of options for your business needs. You can tailor specific workflows, branding and even some features to better fit your business processes.
- Integration: Erin supports integration with many third-party tools and systems, such as accounting software, customer relationship management (CRM) systems and payment gateways. This ensures that Erin can fit seamlessly into your existing tech stack.
5- What kind of support and updates does Erin offer?
- Customer Support: Erin comes with dedicated customer support, including onboarding assistance, knowledge portal and help desk services. Support is typically available via multiple channels.
- Regular Updates: The platform is regularly updated to improve performance, introduce new features and ensure compliance with the latest industry standards. Updates are rolled out automatically, minimising disruption to your operations.
6- How does Erin handle scalability as my business grows?
With its API-first architecture and hosting on Amazon Web Services, Erin is built with scalability in mind:
- Scalable Infrastructure: As your business grows, Erin can scale to accommodate more users, higher transaction volumes and additional features. Whether you’re expanding your team or increasing your customer base, Erin’s infrastructure is designed to grow with you.
- Modular Features: You can start with the essential features and add more advanced modules as your business needs evolve, ensuring that the system adapts to your growth.
7- What are the risks of vendor lock-in with Erin?
Vendor lock-in refers to the difficulty of switching from one software provider to another due to the integration, data and processes tied to that vendor. With Erin:
- Data Portability: Erin offers data export capabilities, making it easier to move your data if you decide to switch providers.
- Transparent Contracts: Our licensing agreements are transparent, with clear terms on renewals and termination, giving you control over your long-term commitment.
- Flexibility: Erin is designed to integrate with other systems, reducing the risks associated with being locked into a single vendor for all your needs.
8- What are the security features and industry compliance standards of Erin?
Erin prioritises security and compliance:
- Data Security: Erin employs advanced encryption protocols, secure user authentication and regular security audits to protect your data from unauthorised access.
- Compliance: The platform is designed to comply with industry regulations, such as GDPR for data protection, PCI DSS for payment security and other relevant standards depending on your region and business type.
9- How does Erin compare with other off-the-shelf travel reservation systems?
Erin is competitively positioned against other travel reservation systems:
- Flexibility: With an API-first approach, Erin scales effortlessly to your evolving needs, unlocking limitless possibilities and retaining performance.
- Comprehensive Feature Set: Erin offers a broad range of features from stock control to 3rd party content.
- Customisation: Unlike some other platforms, Erin offers a higher degree of customisation, which can be critical for travel businesses to differentiate themselves.
- Power: Erin’s robust features optimise operations and elevate user experience.
- Speed– 99% of Erin’s pages load <500mS
- Extensive Functionality: Seamlessly integrating with bed banks, flights, ground logistics, customer relationship management (CRM), accounting systems and payment gateways, Erin eliminates the hassle of switching between platforms.
10- What are the long-term benefits of buying Erin over building custom software?
- Cost Efficiency: In the long run, Erin provides a predictable cost structure, avoiding the high and often unpredictable costs associated with custom software development.
- Reliability: Erin is a proven solution, reducing the risks associated with software bugs, development delays and maintenance challenges.
- Focus on Business Growth: By opting for Erin, you can focus on scaling your business rather than managing a complex software development project.
- Continuous Improvement: Erin evolves with industry trends and customer needs, ensuring that your software stays up to date without requiring additional development effort on your part.