Buy, Then Build: A Progressive Approach to Tech Adoption

Tour operators and cruise lines face a critical decision to remain competitive today: Do they build their own technology solutions in-house or buy and integrate third-party platforms?

Known as the “build vs buy” debate, this one decision is crucial in delivering unforgettable experiences for travelers.

At Kaptio, we propose a paradigm shift: Let operators concentrate on their strengths while leveraging our state-of-the-art technology to progressively improve their tech stack and optimize operations across all business areas.

We call this: Buy, then build.

What Does It Mean to “Buy vs Build”?

The “build vs buy” decision centers on whether a company should develop software in-house (build) or partner with an external vendor (buy). Each option has its benefits and challenges, with considerations like cost, time, expertise, and strategic business goals.

Travel companies might consider building their systems in-house for several reasons:

1. Customization: In-house development allows for solutions explicitly tailored to unique business processes.
2. Control: Owning the system provides complete control over updates, security, and customizations.
3. Proprietary Technology: Developing unique technologies can give a company a competitive edge and help build a moat around its market position.

Historically, many tour operators built their own systems because the technology landscape did not offer specialized solutions. Legacy, off-the-shelf products were often too generic and lacked the flexibility and specific functionalities required to manage complex travel operations. Additionally, third-party solutions offered little value and ROI compared to their upfront costs, making in-house development a seemingly more viable option.

But today’s multi-day travel tech landscape has transformed dramatically. Not only is it possible to leverage the expertise of third-party platforms while delivering a significant return on investment, but we at Kaptio strongly suggest taking a closer look at this model of technology adoption.

Here are a few defining characteristics of the technology available in the market today:

1. Specialized SaaS Solutions: The rise of Software-as-a-Service (SaaS) platforms tailored for the multi-day travel industry provides operators with robust, flexible, and scalable solutions.
2. Seamless Integration: Modern SaaS platforms offer smooth integration with existing systems, which allows for incremental improvements without significant overhauls.
3. Continuous Innovation: SaaS providers regularly update their platforms and features so clients always have access to the latest technology and tools.

Kaptio Proposes a New Paradigm: Buy, then Build

At Kaptio, we believe travel companies should prioritize their expertise — creating memorable travel experiences. This is why we propose our unique approach, which empowers operators to Buy, then Build.

“Unlike monolithic all-in-one systems, Kaptio’s modular approach allows for incremental adoption, customization, and integration tailored to specific business needs. Thus, operators can gradually enhance their capabilities without overhauling their entire infrastructure at the same time.”
— Ragnar Fjölnisson, Kaptio founder and CIO

By transitioning progressively from legacy systems and implementing operations, sales, or self-service modules, operators can experience a seamless evolution of their technological infrastructure.

Kaptio’s ‘Buy, then Build’ approach is oftentimes a more practical strategy that offers multiple benefits:

• Speed: Operators can quickly implement essential functionalities without waiting for custom solutions to be developed from scratch, all while keeping core internal systems in place if required.
• Cost Efficiency: It reduces upfront investment by spreading costs over time and utilizing scalable SaaS solutions.
• Risk Mitigation: It allows operators to maintain some core systems, reducing the risk of a complete system overhaul and ensuring a smoother integration process.

For example, some operators already have robust CRM systems like Salesforce. These operators might focus on integrating Kaptio’s Commerce and Payments modules to enhance their current capabilities without replacing their CRM.

Other operators may already partner with a global payment provider and, therefore, leverage Kaptio Commerce to personalize and expand their product range. By integrating Kaptio’s dynamic packaging and inventory management, they can offer more customized travel experiences while leveraging their existing payment infrastructure.

Plus, with Kaptio, operators gain access to a collective knowledge base and practical features built with the feedback from the industry’s most successful multi-day tour brands.

By leveraging Kaptio’s solutions, operators can focus on what they do best — creating unforgettable travel experiences — while progressively enhancing their technological capabilities.

Built for Innovators

A tour operator’s job is to deliver exceptional experiences. Kaptio’s job is to provide the technical means to allow you to do this well and at scale.

Kaptio’s modular platform addresses the unique challenges faced by multi-day travel operators. Its long-standing market presence, industry knowledge, strong reputation, and earned credibility in designing multi-day tour technology differentiate it from other legacy solutions.

But we’re not for everyone. We’re looking to partner with innovation-ready operators — companies that exhibit ambition and a forward-thinking mindset and are willing to invest in technology and internal teams to maximize their value.

Are you one of us?

Let’s conquer the complexity of multi-day travel together. Set up a demo today.