Even though the pandemic has affected all the sectors and industries globally, there isn’t one that took the blow as hard as travel and hospitality did. The cessation of all kinds of travel has made a huge dent in the industry’s growth, 4.2% of global GDP or USD 3.3 trillion, to be exact.
Now while the loss seems humongous, AI, with its unprecedented capabilities, is all set to bring the industry out of the pits. A report published by Industry Arc predicts that by 2026, the global travel and hospitality AI market will surpass the mark of USD 1.2 billion, compounding the growth of the businesses involved! That’s how big of an impact technology has on the industry, and in this post, we will explore how you can leverage the same to cultivate the growth of your travel and hospitality business.
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Travel Management System: An Overview
A travel management system is software that manages bookings, travel inventory, and trip packages for users. Usually, the tool is used by corporates to manage business trips for their employees. It keeps track of their expenses, budgets, travel policies, and reporting. While the software is mostly used for corporate travel purposes, you can scale it to offer similar ease and convenience to other users and monetize your services to add another stream of revenues for your travel and hospitality business.
Calculating the Cost of Developing an AI-based Travel Management System
As mentioned above, the software for travel management carries a lot of potential to become a business revenue source, but like any other active income source, the software comes with its own range of investments. Following are some of the considerations that can help you decide the cost of an AI-based travel management system.
Scale of the Product
A travel management system can be something as small as a macro-enabled spreadsheet with modules handling taxes, schedules, itineraries, and expenses of travel, stay, sundry charges, etc. On the other hand, a SaaS Travel Management System can be something colossal that would allow users from around the globe to make their travel plans easily for some subscription fees. As such, it is clear that the cost of a travel management system cannot be decided without understanding the scope and scale of its functions.
Platform to Run it on
Whether you want your travel management system to run on dedicated on-premise systems or on smartphones, a lot of the cost involved in the development project depends on the platform you decide for your system. For systems running on dedicated on-premise servers, you can have a custom solution built for your brand or else customize a subscription-based model to get the desired functionalities without much investment. For enterprises choosing to run their software on smartphones, the cost of an AI-based travel management mobile app will also get involved.
Number of Users
For a system running on cloud resources using the internet, the number of users to use the software also brings huge variations in the development cost. The reason is that the servers can only handle a certain amount of traffic; anything more than that will require you to purchase more storage and computing space on the cloud, which will ultimately reflect on the cost of the entire project. Moreover, more users on a software lead to the need for a stronger authentication system, adding another feature to the software that will require more time and resources to get developed, bringing more differences in the development cost.
Features to Include
Ultimately, it is the number and types of features that decide the substantial constituent of a Travel Management System’s cost. Here is a list of the core features you would want to involve in your system, and then based on the other considerations mentioned above, you can get a better idea of understanding the cost of the project.
Cost of AI Implementation
Since we want to learn the cost of an AI-powered travel management system, the features above alone cannot decide the project’s cost. Here are some of the other essential factors around Artificial Intelligence that contribute to the system’s development cost.
Type of AI
There are different ways to implement AI in a travel management system, and each comes with a distinct price range. Here are some of the major applications for your consideration-
Live chatbots are among the most popular AI applications for not just travel but all the other industries as well. They assist businesses in automating custom support and resolving FAQs quicker than humans can with better accuracy even. This improves customer loyalty by offering dedicated services for issue redressal and order updates. They also help in cross-selling through product recommendations.
- Analytical Systems:
With AI-powered analytical systems, you can take all of the stored data and actually make use of it to make better travel policies and business decisions. From customers’ data to entries from the sales and marketing team, all can be gathered together to derive meaningful insights from their historical records. Eventually, this will help you in lowering your marketing spending by helping you make more effective strategies over time.
- Virtual Assistants:
Smart assistants integrated with your travel management system will amplify their effectiveness and availability multifold. You can simply ask them for their trip details or to add a reminder to make a booking, etc., to facilitate your routine tasks with the system through conversational ease. While arguably it is quite an advanced application for a travel management system, the ubiquity of smart speakers and assistants will soon make this a commonplace feature too.
A travel management system can easily become a major source of cost-saving and improved productivity for not just a travel and hospitality business but rest others as well that involve recurrent personnel travel. As such, it is a great investment, especially if you empower it with the incredible capabilities of artificial intelligence. Now calculating a software’s development cost is not as easy as it may sound. A lot of factors, majorly your requirements, play a decisive role in the same. This is why, if you really want to know the price of your travel management system, the ideal way is to request quotes from a development company. That being said, developing an AI-based travel management software is not everyone’s cup of tea.
In fact, if you do not choose your tech partner carefully, you can end up with a prolonged project with a ditch for all your investments. This is why it is important you select a travel management software development company after evaluating their experience in the industry as well in the next-gen technologies like AI and ML.
Matellio, with over two decades of experience in creating bespoke travel and hospitality solutions, is one such company you can trust with your project requirements. Not only are our developers experienced in creating feature-rich travel applications, but their expertise in AI also makes them a great skilled resource to see your project to its end. All you need to do is book a free consultation call with our experts and then share your requirements with them. They will create a project plan and share a free quote with you. And just like that, you can begin the journey of your travel management system.