Issue link: http://www.e-digitaleditions.com/i/58060
Technology tools are constantly changing, and they're being applied in different ways by different companies. To teach in that context, schools might have to get closer to the real world, with businesspeople leading case study discussions. When Travelocity first began in 1996, was it risky to think people would turn to the Internet to book travel? It was. The category of travel has a lot of meaning in people's lives, and it's also a very high-ticket item. In 1996, those brave few souls who came to Travelocity—who were not Travelocity employees and relatives!—were cutting- edge. But they benefited by putting control of the travel experience back in their own hands. Instead of trusting an agent to show them options, they could see all of the avail- able flights, all of the hotels, all of the prices. Now hundreds of millions of customers from around the globe have fol- lowed those first consumers. What emerging technologies are likely to affect the way you run the business? First, we'll provide richer information. When consumers come to a site like ours, they want to scroll through photos and videos and put themselves right in their destinations. Flash content and integrated tools are part of the next gen- eration of technology. Second, we have to pay attention to how relationships on the Internet are changing. Up until now, most relation- ships have been hierarchical, meaning one person has been transacting with one company. New technology is enabling what are almost horizontal relationships. For instance, a customer can read what other consumers are saying about a destination or a hotel. They can post their own feedback and reviews for others to scroll through. This whole notion of user-generated content is very powerful, whether that con- tent is created by blogs, community sites, or user reviews. We're building our third prong of technology improve- ments around relevance and personalization. If we have con- sumers who travel to Orlando several times a year, we have to make sure that, when they come to our home page, they're seeing relevant ads. If they've bought an air ticket to Orlando, we have to make sure we're not showing an ad about a hotel in Vegas. If we have customers who like to take ski trips, we need to offer them subscriptions to newsletters about ski deals and other ski-related information. What can business schools do to make sure they and their students can keep up with the rapid pace of techno- logical change? Technology isn't like an accounting class where the core concepts are going to stay the same. Technology tools are constantly changing, and they're being applied in 18 BizEd JULY/AUGUST 2007 different ways by different companies. To teach in that con- text, schools might have to get closer to the real world, with businesspeople leading case study discussions. These days, a variety of factors have combined to make air travel a somewhat unpleasant experience. Planes are crowded, security checks are intrusive, ticket prices are climbing. What do you see as the future of travel, and how will Travelocity's strategy align with or drive that future? I foresee a number of changes. First, we have to give con- sumers more and better information as they're making their travel purchases. We're testing the market for ways to show on-time percentages and lost baggage percentages by carrier. Right now, we can tell customers when there are only three seats left in a certain fare class, so they know to buy their tickets immediately if they see a good deal. We can tell cus- tomers where there are certain amenities or services available to help them make their buying decisions. Second, through our Customer Championship philoso- phy, we've taken greater accountability for the travel experi- ence itself. If we find out a flight's delayed, we send custom- ers an alert to their mobile phones or Blackberries. We let them know if there's a gate change so they don't go to the airport and park at the wrong terminal. We let them know if severe weather is affecting their destination or if the pool is closed at their hotel. We'll send them proactive alerts before they travel so we can adjust their plans if any of these issues are important to them. Through Customer Championship, we are saying Trave- locity's role doesn't end at the time of booking; it ends when the trip is over. Part of our mission is to use our technology to make sure that the travel portion of people's experience goes well. A new trend in travel is an awareness of the environ- mental impact of a trip. Travelocity now advertises "en- vironmentally friendly" airplane tickets. What do these entail and why are they important to you? We're all passionate about travel here, and we think travel makes the world better, but we also want to make travel sustainable. If consumers want to offset the carbon from their flights, we offer them the chance to make a donation to a nonprofit that plants trees. We're also funding grants for people who are traveling to do good in the world, like help- ing with cleanup after Hurricane Katrina or going to work in an orphanage in Cambodia. We fund a couple of those grants every quarter. It's our way of saying, "Travel has given us a