Two industries that have experienced tremendous growth on a global scale and continue to succeed are car rental brokers and IT companies. Combining these two industries gives rise to travel technology (“travel tech”) companies, which represent a promising business niche due to their ability to reach and serve customers even in the farthest corners of the world.
The car rental industry has undergone significant changes in recent years, with an increase in the number of car rental broker companies offering various vehicles online at competitive prices. These brokers act as intermediaries between customers and car rental companies, offering a wide range of vehicles and locations. Such online platforms, which refer to themselves as travel technology companies, have completely transformed the traditional car rental industry and created new growth opportunities.
Meanwhile, the IT industry is at the forefront of the digital revolution, providing innovative solutions across various sectors. IT companies have played a crucial role not only in maintaining business operations during the COVID-19 pandemic but also in creating new business models. With advanced technologies and innovative ideas, IT companies have become leading players in the global business environment. This brings us to the question: why are travel technology companies the conquerors of the international business landscape?
One of the main and, in my opinion, most important reasons is the ability to leverage technology. I observe that there are still companies that are reluctant to embrace digital technologies, and as a result, their potential to reach an international audience is significantly reduced. To reach customers worldwide, the key “trump card” for travel technology companies is highly developed IT solutions, which have also helped me build a global business. We have developed an online car rental reservation platform with a call center that serves customers in 17 languages. I can say that our daily operations are closely tied to the continuous development of IT system updates, digital marketing, and the effective use of search engines, as all booking processes occur online.
Fifteen years ago, I was clear that the direction to take was travel technology, or in other words, to establish an online car rental platform company that provides cars to customers worldwide for tourism purposes. I can say that I do not regret this decision!
The path to conquering continents was not easy, and we strategically expanded into various regions. Initially, the goal was to serve customers in Russia, Ukraine, and Belarus, where there was significant market potential. However, after the invasion of Ukraine, it became clear that many companies reevaluated their favorable attitudes and behavior towards Russia as a business-friendly country. This also demonstrates the advantages of international operations, as before the war in Ukraine began, we had managed to enter Western markets, ensuring continuous customer service. Gradually, North America, Australia, and New Zealand became the main markets for the company, while rapid development in Europe is hindered by market fragmentation. An important component of developing travel technology business is establishing relationships with foreign partners. After nearly 20 years in the industry, I have learned effective approaches to building relationships with business partners, which can also be useful to other travel technology companies.
Active Online Presence
In today’s digital age, it is crucial for companies to ensure 24/7 online presence. This means having a website optimized for search engines and regularly updated with relevant information. It is the main business card that potential business partners will see! In our case, a fairly aggressive digital marketing strategy in synergy with active partnerships with international companies like “Skyscanner,” “Travelsupermarket,” and “Kayak” helped us more than double our profits after the pandemic compared to 2019.
International Trade Shows and Conferences
Attending international trade shows and conferences is a great way to meet potential partners and clients from around the world. In-person events provide a venue to showcase your products and services, as well as learn about the latest trends. In my experience, especially useful exhibitions in the travel technology niche include “World Travel Market,” “International Travel Market,” “Arabian Travel Market,” “Fitur,” and “International Car Rental Show.” Participating in these exhibitions has helped us secure contracts with car rental companies that are leaders in the global market.
Long-Term Relationships with Foreign Partners
Building long-term relationships with foreign partners is crucial for success in the travel technology industry. This means investing time and resources to establish strong communication channels, understand cultural differences, and build trust. It is important to be able to respond quickly to partners’ needs to find mutually beneficial solutions.
Market Trends
Finally, companies wishing to operate in the travel technology sector on a global scale need to stay informed about market trends. This means regularly following industry news and analyzing data to identify new growth opportunities. Currently, we observe a trend where customers are thinking more “green” and sustainably, leading car rental providers to include more electric vehicles in their offerings. The pandemic period has also changed the car rental market, with service prices rising due to companies being forced to reduce their fleets but now striving to regain previous volumes.
In my opinion, travel technology companies are global conquerors because this combination of tourism and IT industries facilitates convenient customer reach and service from anywhere in the world. I believe that travel technology entrepreneurship is a promising business niche, with many innovations, including the use of artificial intelligence, expected in the coming years.
