The travel and tourism industry is divided into different modules ever since the sector witnessed a surge in technical software to improve the way tourists plan and book their vacations. Travel agent software development companies are responsible for breathing the fresh air of change, resulting in a rapid upsurge of tourism in recent years. And, the entire industry emerged from a mere B2C model to B2B and B2B2C models.
Concrete differences are underlying these models, but to get a clear understanding of the points of differences, it is imperative to learn a thing or two about each one of them.
What is B2C travel portal?
This business to consumer model allows a retailer to directly sell its products to the end customers. Obviously, most e-commerce sites follow this B2C model such as Amazon and Flipkart. And, so are the Online Travel Agencies which excel in tailoring customized tour packages using itinerary builder software for a travel agency and sell those packages directly to travellers who are planning and booking their itinerary using such OTAs.
Expedia and MakeMyTrip.
What is B2B model?
As the name suggests, this Business-to-Business model establishes a direct connection between two businesses. In simple words, when a particular business is sourcing raw materials for their production from another company, it is following the B2B model.
For example –
Goranga Tech is a B2B travel agency software company and OTAs, as well as, other travel agencies, big or small, are its clients.
What do you understand by B2B2C business model?
The abbreviation ‘B2B2C’ stands for that business model which is a result of the convergence of B2B or Business-to-business travel portal and B2C or Business-to-consumer travel portal. The whole idea behind approaching this model is to reach the ultimate users via a second business.
For example –
In a travel and tourism industry, the vendors for car transfer, hotels and other businesses falling within the same sector will opt for B2B2C model and connect with the end users via a travel agency or an online platform like OTAs. These OTAs bridge the gap between consumers and service providers.
DMC+ of Goranga Tech is a B2B2C system for local DMCs. It is connected to over 40 major suppliers using their XMLs, thereby converting it into a complete hub allowing local DMCs to easily manage their products including hotels, transfers and sightseeing activities.
Why B2B2C travel portal is better than B2C model?
But, the question remains why B2B2C travel portal is better than B2C model? Or, rather why choose B2B2C over a B2C travel portal?
Here is a list of differences that will answer your above questions –
Differences between B2B2C and B2C
As mentioned earlier, a B2B2C model is a fusion of B2B and B2C. But approaching the former business model has its own share of benefits, a list of which is given below –
Maximize business opportunities
Following a B2C business model will not be as profitable as a B2B2C one. Citing the example of travel agencies here, B2C travel portals rely heavily on third-parties for offering accommodation, conveyance, cab rentals for transfer and other services to the customers who are trying to plan their vacation via the agency. This will increase the overall holiday package for the customers. Also relying completely on the whimsical customers amidst cut-throat competition will make survival a challenging task for the agency.
On the other hand, a B2B2C travel portal has more than one profit-making channels, thereby cutting down their dependency on such reckless customers. Maintaining a close relationship with vendors by promoting their services and connecting them to the end-users cut down on high commissions and create a win-win situation for both.
Enhanced customer experience
Cutting down middlemen and third-party agents, enhance the overall customer experience. A B2B2C travel agency can easily cater to travel itineraries of travellers with tailor-made, all-inclusive, budget-friendly packages with accommodation and conveyance facilities sans extra commissions. The vacationers get a highly secured platform to book and pay for their itineraries, as well as, get speedy solutions to their grievances and adequate 24 hours around the clock customer support.
Widens potential audience
This is definitely one of the important perks of using a B2B2C travel portal. Expanding your borders and widening your audience by opening multiple channels of earning profit are a few such benefits. On the other hand, a mere B2B or B2C portal relies on a singular channel for making money.
For example –
Companies building online booking engine for travel agents follow B2B business model and target travel agencies, small or medium, wherein the travel agencies are a part of the B2C business model. They have limited market reach. But, Trip.com Group Limited is a Chinese provider of travel services that owns and operates online travel agencies such as Trip.com, Skyscanner and CTrip.com, follows a B2B2C business model. Its target market is mainly business travel clients, but they are making money by meeting the travelling needs of the vacationers as well.
Even though B2B2C models are not perfect for every business idea, but such models can prevent your economies from deteriorating when applied for the idea or service you are building. Whether you are a travel agency or a travel software development company, this particular model will work only if you invest enough time on multiple implementations and navigating complex paths of customer ownerships.