Hybrids: The Next Generation of Travel Websites

While for most the term “hybrid” may conjure up a Prius, in the travel space more and more companies seem to be realizing that the best business model is one that combines both transactions AND advertising.  Similarly, when it comes to managing travel content, emerging companies are pursuing a hybrid approach, as they combine software-based analytics with real human insight to help consumers filter through the ever-expanding content universe. Companies at the leading edge of these transformations will be the industry’s stars, while the laggards will become the Buicks and Oldsmobiles of the online travel world.

It was clear from last week’s Phocuswright Conference in Los Angeles that leaders in the industry like Expedia and Kayak are moving increasingly towards the blended transactional/media model, understanding that they need to monetize the 95% of consumers who come to their site and DON’T book. These non-bookers are still valuable however, since travel sports some of the highest average online ad rates of any sector. Why? It really comes down to the fact that travel and the internet were made for each other — the web has rapidly become travelers’ top choice for both booking AND researching and planning their trip. And, while the trend may have begun in North America, online penetration is growing especially rapidly overseas.

At the same time, there has been an explosion of travel content across the web, meaning that consumers are under an ever-greater burden to find what they’re looking for amidst the deluge of information. Given this situation, the need for curation of content is becoming even more important. And here again, it’s the hybrid model that will likely yield the most dividends: both software and human insight are required elements. The automated organizing and processing of huge amounts of data is clearly a job for software, and high quality algorithms are the only effective way to generate scalability. However, it’s also clear that software alone is unlikely to fulfill the user’s expectations about quality, especially given the high information requirements of travel (we’re not selling music downloads, after all). Ultimately, it’s going to be at the intersection of “smart” software and “smart” travel experts who are going to best help travelers find what they’re looking for, and ultimately have the best travel experiences.

We at NileGuide are trying to both ride this rising tide, and innovate in key areas within the emerging “hybrid” space. Our dual track business model of integrated transactions plus targeted advertising seeks to generate value regardless of the consumer’s propensity to book. In addition, our hybrid content model means that we’re using fancy software to collect and organize lots of data, but we’re also working with real local travel experts on the ground in each destination we cover. These people help us “cross the chasm” between pure search and “informed recommendation.” Finally, we believe that being a true hybrid means providing value at multiple stages of the online travel value chain. To that end, we integrate planning, booking, sharing, and self-publishing tools into our content-based recommendations. Ultimately, we’re moving toward a “one stop shop” model, where travelers can research, plan, and book all under one roof.