Travel companies react differently to a crisis. in the ATPIIn this case, one response to the pandemic is to join the other mega-agencies that sell technology to other travel agents. What ATPI Might Find: Licensing can be a complex matter.
Working on behalf of ATPI is its track record with technology startups. It recently invested $ 1.4 million in TapTrip for example and nearly $ 350,000 in Singapore Gray wings Platform. Now, according to its CEO, it wants to “unlock” its own platform and make money licensing it to other companies that may not have the resources to build their own.
“Our own technology stacks that we have built are actually going to move into a separate department, so we have our own technology branch in addition to a branch of a travel management company,” said Ian Sinderson.
Visit us on July 21 at the Skift Destination and Sustainability Summit
ATPI weathered the storm relatively well compared to many of its competitors, thanks to strong ties to it the resilient maritime and cargo shipping sectors. We managed to make one Profit of $ 15 million last year, but that number was down 50 percent from 2019. Selling software could make up for the loss of revenue.
Ian Sinderson, CEO at ATPI. Image: ATPI
The new technology branch TripStax will be a semi-autonomous company after its official launch in the coming months. TripStax was actually launched last August, but ATPI played by other names and registered Travelstax and Lemonstack en route in the UK Company house.
TripStax will offer a full suite of platforms including a booking tool, profile manager, analytics, due diligence, and traveler tracking platforms – core aspects of the technology the agency has been building a long time internally, Sinderson said.
“We believe now is the time to actually release it to be a stand-alone company,” he added.
Get the right deal
ATPI isn’t the first agency to license a software-as-a-service travel platform to third parties, as some of the bigger players do too. With their deep pockets, they have more options to build, or even buy, specialized platforms.
American Express global business trip, for example, has more than 200 agencies registered in the GBT Partnership Solutions division. As an example, they can use their booking tool Neo, which helps the agency fill in gaps in their footprint. On that basis, it works with people like Kanoo in the Middle East and Tourvest in South Africa.
But what is ATPI’s entry into the software licensing game?
“The timing for all of this is interesting,” said Rajiv Ahluwalia, Amex GBT senior vice president for Partner Solutions & Supply MarketPlace. “Firstly, Covid has challenged a number of players. Second, it’s interesting because of the changes being made to the New Distribution Capability example that require a certain amount of technology investment. When you’re a little gamer, it’s hard to understand the strategies of what has to happen. “
For itself, Amex GBT could grow that part of its business if it did Acquisition of Egencia is progressing. “Egencia’s collaboration with GBT’s Supply MarketPlace, one of the most comprehensive sources of content and experiences for the business traveler, would give customers more choice and providers more access to business travelers.” it says in a statement. Now is recruiting for a vice president for the GBT Partnership Solutions division.
However, one consultant has warned that any agency selling their technology needs to make sure that it is mature and flexible. “There is usually a leap between using a system within an organization and then making it available to a wider audience,” said Guy Sneglar, senior vice president, Global Travel Technology Integration at Travel advice for partnerships.
“Does it have to adapt to different markets, currencies, local requirements or business models? Possibly also other global sales systems? The investment required to keep a solution competitive while building a wider customer base can sometimes be substantial, ”he added.
Amex GBT’s Ahluwalia added that many legal, compliance, privacy and regulatory issues would need to be resolved to make internal products independent of third parties. Then there are questions about the content that comes with the technology product and various commercial structures.
“But the chance is there,” he said.
Over the years, the ramification has proven fruitful, with some spin-offs taking on a life of their own. Managed travel technology platform dishes, for example, was founded in 2013 as a joint venture by Amsalem travel, in Israel, and Portman Travel (acquired by Travel clarity) In the United Kingdom.
HRG was also successful with Development of his expense tool Fraedom, while further back the British rail booking platform Evolvi was originally built by Harry Weeks Travel – an agency founded in 1954.
“When you have a good solution and adequate financial support to develop and advance it, there is no reason why it shouldn’t be successful as an independent company,” added Sneglar.
Register now for the Skift Destination and Sustainability Summit on July 21st
Show full article
