NOTE: This post originally appeared as my comment to one of Dennis Schaal’s blog posts commenting on Expedia using the term “legacy online travel agency.” Please take a look at the post – not just because Dennis is one of the few bloggers that produces such consistently good quality that I eagerly await seeing his latest points, but because this post inspired a great collection of comments from a number of travel industry players I respect. The combination of the post and the comments provides a great overview of the state of travel industry innovation in May 2009. So with that background out of the way, here is my take on why it is seemingly so difficult for “legacy” travel companies to support organic innovation.
photo credit: Ross MayfieldOrganic innovation has traditionally been a challenge for Online Travel Companies - who favor acquisitions
First, the size and investment profile of the Online Travel Companies (OTC’s) applies pressure on the organizations to chase quarterly profits and defer innovative projects that require greater development effort or longer time horizons. As a result, product and development teams are driven to find the proverbial “low hanging fruit” and progress becomes evolutionary instead of revolutionary. continue reading →
