Managing the Complexity of Multi-day Travel with Kaptio

The vibrancy and excitement of the multi-day travel industry are only matched by its complexity—especially when it comes to distribution.

Traditional distribution models kept operators at arm's length from influencing how trips were marketed, sold, and distributed to end passengers, which, of course, led to inefficiencies and disjointed customer experiences.

Today, the multi-day travel sector is experiencing a transformative shift toward a new interconnected distribution model that demands adaptability from every player within the distribution chain.

Ultimately, more efficient distribution of multi-day tours will empower operators to sell and market their products to a wider range of customers across multiple channels. 

To achieve this, however, the industry must embrace a streamlined approach to directly connecting suppliers, operators, sellers, and passengers. 

What Makes Multi-Day Travel Distribution Complex

Multi-day travel encompasses various components such as transportation, accommodation, activities, and meals. Coordinating and packaging these elements into a seamless booking process is inherently complex. Each component may involve different suppliers, which adds layers of complexity in terms of logistics and coordination. 

Online booking platforms and OTAs tend to standardize features such as departure dates, prices, lengths, and destinations. This standardization can obscure the unique aspects of a tour; therefore, making it harder for operators to differentiate their offerings and retain their competitive edge. 

Whereas stakeholders from companies selling single day tours and activities have come together to create standardized product merchandising input through an independent, non-profit organization, the same has not been done in the multi-day sector.

Non-partisan organization Open Connectivity Travel Organization (OCTO) has established a unified approach to product listings, ensuring consistency and quality across different platforms. This standardization simplifies the booking process for customers and enhances the visibility and accessibility of single-day tour products. It has also helped operators streamline their offerings, reduce operational inefficiencies, and improve the overall customer experience. 

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Moreover, modern travelers demand personalized experiences with flexible itineraries and customizable packages. Managing and delivering these personalized experiences requires sophisticated technology and seamless coordination among various suppliers.

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When packages are not readily available and bookable online, customers are forced to call or email for more details or to complete a booking. The hassle multiplies when these products are listed on a third-party site or with a travel agent. 

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While this might be acceptable in the case of a $15,000 multigenerational luxury vacation, it can be an inconvenience and deterrent to booking something more straightforward like a $1,500 solo trip to Thailand. 

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Current State of Distribution for Multi-Day Travel

Change is underway in the once-static system that relied heavily on human intermediaries.

The current distribution landscape for multi-day travel products is dominated by travel advisors and direct-to-consumer channels. However, it is becoming more diverse with specialty marketplaces such OTAs and metasearch platforms plus destination marketing companies (DMOs), and influencers all trying to sell directly to passengers.

And, more than ever before, operators are exploring the potential of direct connections with third-party platforms—a trend that mirrors developments in corporate travel, where, for example, new distribution capabilities enable airlines to provide a more detailed and precise customer experience on third-party platforms.

The linchpin here, however, is that third-party booking platforms have a significant downside: They often require tours to be commoditized to fit standardized comparison features. 

Therefore, similar to how NDC makes it possible to meet client-specific needs through direct connections, multi-day tour operators can also adopt new technologies to manage their supply chains and distribution channels more effectively.  These solutions make it possible to list and offer more personalized and flexible itineraries on direct and third-party sites.

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Future State of Multi-Day Travel Distribution

The digital transformation that has revolutionized booking flights, hotels, and ground transportation is coming to the multi-day tour sector. Operators ready to embrace this new era have vast potential for innovation.

For example, social commerce has immense potential for multi-day tour operators. Influencer marketing, user-generated content, and targeted advertising can significantly boost visibility and credibility. While social media is nothing new, the ways in which younger demographics of travelers interact with it means operators need to factor these platforms into their distribution strategies. 

The good news is that the push towards digitizing and simplifying the booking process for multi-day tours will continue. Innovations such as real-time pricing, drag-and-drop itinerary customization, and mobile booking options will become more prevalent, enhancing the user experience.

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How Kaptio Streamlines Supply & Demand

The future is simpler than the past, and Kaptio is leading the charge. 

Through a unified approach, we are working to streamline operations, enhance customer experiences, and drive business growth, enabling operators to sell personalized tours across any kind of platform.

Here’s how:

1. Modularity: Unlike monolithic all-in-one systems, Kaptio's modular approach allows for incremental adoption, customization, and integration tailored to specific business needs. Modules reduce implementation risk and enhance flexibility for smoother transitions from legacy systems.

2. Dynamic Packaging: Kaptio has invested in enhancing its core packaging model, creating new user experiences for package search, and developing a booking wizard to streamline booking configurations. Additionally, dynamic packaging allows for flexible and personalized travel packages supported by future AI-powered features.

3. Self-Service: Kaptio's platform offers easy access to booking, payment, optional services such as insurance, and mobile-friendly travel documents. Self-service functionality enhances the customer experience and reduces the operational burden on travel operators.

4. Connectivity Partnerships: Kaptio integrates with leading connectivity providers, offering seamless solutions across all aspects of multi-day travel. These partnerships enhance connectivity across the travel ecosystem, supporting the growing demand for comprehensive travel solutions.

Embrace the Future

The future of multi-day travel distribution is bright for those willing to embrace digital transformation. 

Through a simplified and direct connection between suppliers, operators, sellers, and passengers, the industry will move to a streamlined approach that empowers all players, enhances competition, and improves the overall travel experience. The winners will be those who invest in a modern tech stack for product and channel flexibility and connections.

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