How Reservamos SaaS achieves a successful eCommerce migration for their allies

by Marisol Morelos | Jun 25, 2024 | eCommerce

One of the main advantages, for companies that decide to migrate their eCommerce, is to leave this operational task in the hands of a partner with the necessary experience

eCommerce platforms not only facilitate the sale of bus tickets but also improve the traveler experience, optimize internal operations, and open up new positioning and growth opportunities for companies in the ground transportation sector.

One of the main advantages, for companies that decide to migrate their technology, is to leave this operational work in the hands of a partner with the necessary experience. This allows them to dedicate their efforts to their growth goals and save time and resources on processes outside their core business. 

Hence the importance of choosing a technological partner such as Reservamos SaaS, which accompanies companies from the definition of the project to the implementation of the technology to the eCommerce or application. Companies that choose this option have positively impacted key metrics for their growth, such as increased sales and more secure transactions, reduced operating costs, better inventory management, and resource optimization. 

But what should bus companies focus on when making their decision? Here are 3 relevant points, according to José Luis Landaeta, Head of Customer Success at Reservamos SaaS:

1. Evaluate the technology provider’s experience in various markets and countries.

Where is the supplier located, in which countries does it have a presence, and has it expanded internationally? A technology provider with international expansion acquires experience to understand and solve the challenges that arise in each country, being able to adapt the tools, technology, and knowledge to each company and market.

2. Measure how many launches you have had in the last 6 months.

This will help to understand if it offers products or solutions that maintain a high pace of innovation and updating, in line with technological advances and according to what users and trends demand.

3. Know the relationships they have with leading companies in the sector. 

Evaluate the relationships the technology provider has and the opportunities for linkage that an alliance would bring. For example, Reservamos SaaS allies and prospects give great value to the formation of an international community, which promotes the exchange of knowledge among leading companies in Colombia, Peru, Brazil, Chile, and Mexico; as well as to the Board of Advisors that supports us and provides great experience in sectors such as tourism, technology and business.

We are dedicated to growing each of the bus companies’ direct online sales channels, both their eCommerce and their applications. Bus companies throughout Latam are betting on the growth of the online channel, but we have found that without the right technology, they run the risk of slowing down their competitiveness and not reaching their business goals. For this reason, we have focused on creating a technological ecosystem that complements each company to boost online ticket sales and increase their market presence in the face of competitors and new business models. – José Luis Landaeta, Reservamos SaaS Head of Customer Success.

If you are considering upgrading or optimizing your eCommerce platform with a new provider such as Reservamos SaaS, in this article we share with you some of the general processes we go through with our partners. Whether you want to migrate from a Whitelabel or you developed your eCommerce internally, we guide you on how to prepare your operational teams in this important project for your business, and thus evolve digitally through your direct online sales channels.

1. Engage team leaders early about platform migration.

It is important that, before the contracting of the eCommerce platform, i.e. during the platform evaluation process, the technical, legal, marketing, commercial, financial, and customer support teams of the bus company actively participate in sessions and demonstrations of the new platform. This is to get to know the current processes of the bus company, and thus define the points that are most relevant for each area. 

With Reservamos SaaS technology and ecosystem, we help brands improve their operations, introducing them to this first step towards their digital evolution. Therefore, we need to know In this step we share the stages of implementation so that each leader can anticipate the requirements that will be requested so that the final delivery of their new eCommerce is the most appropriate and according to their needs.

2. Align the bus company’s internal teams on the new changes.

Bus companies that select Reservamos SaaS as their technology provider follow a timeline that provides guidance to the project and coordination to the teams. In this way, it is possible to know the people involved in the implementation and follow each step together.

The technological structure of Reservamos SaaS is conformed by Product Managers, who take care of the interaction with each partner, for the follow-up of the technical part (web services requests, CMS, logos). While the Tech Lead studies the added documentation and generates the best strategy for an efficient integration. 

A fundamental step is the presentation of equipment, both from the technology provider and the bus company. From the bus company, it is important to know a member of the technical team, the marketing team, the commercial team, and the project leader. The latter is relevant to help with key issues or requests for any information that may be required during the integration of the technology. 

The most important part of an integration is to present the project teams and objectives. Each stakeholder must know with whom he/she will communicate and what type of information each person will request. As well as the continuous monitoring of the integration, through periodic meetings. – José Luis Landaeta, Head of Customer Success at Reservamos SaaS.

3. Define the role of the bus company’s technical team by having a new eCommerce provider.

In addition to helping to increase the performance of direct online sales channels at a lower cost, Reservamos SaaS solutions provide greater operational and analytical capacity to the technical teams within a bus company. This operational capacity translates into innovation agility, detection of opportunities, and strategy adjustments in real-time, which generate a positive impact and higher revenues. 

Here are the main reasons to have a technical team that is agile, efficient, and focused on detecting opportunities, with the help of technology: 

1. To have cutting-edge direct online sales channels, your internal systems must be constantly evolving.

For example, if a company wants to implement ticket changes and cancellations within the site, it can only do so if it has the development within its internal systems. By taking back operational control of their business, with the help of a technology partner, internal teams become more relevant, as they can grow their systems hand in hand with their technology provider.

2. Process automation allows teams to optimize their operations to focus on analyzing and detecting growth opportunities.

For example, during peak season, internal teams can allocate new runs to meet demand in a matter of minutes. The technological capacity they acquire allows them to take this type of initiative in a more agile way, thus increasing sales for the company. With Reservamos SaaS, the technical team, far from losing importance, gains relevance by detecting opportunities more quickly, adapting its offer, and therefore increasing the impact of its digital strategies, hand in hand with specialized technology.  

3. Take calculated risks that translate into higher profits and revenues for the company.

For example, creating dynamic pricing strategies, with the help of an appropriate revenue management system, is a process that can take as little as a few hours; while adjusting this same strategy, according to market behavior and real-time user demand, can be done in a matter of minutes, and without risking revenue.

4. Develop product initiatives that help increase average ticket sales.

For example, activating ancillary features such as pet travel, box lunches, round trip ticketing, or even loyalty programs, are initiatives that represent higher revenue per transaction, but can be complex to develop within eCommerce. The collaboration between the technical teams and a technology provider such as Reservamos SaaS, allows for the development of more agile way functionalities that increase the competitiveness of the company and help to increase its profits. 

4. Monitor metrics and post-migration follow-up

At Reservamos SaaS, the accompaniment and guidance of the Product and Technology team does not end when the eCommerce migration process is completed. After this stage, there is constant monitoring of key metrics to ensure that everything is working optimally. 

Each stage of the sales funnel is analyzed, looking for indicators that point to any pertinent adjustments within the eCommerce. Tracking traveler behavior throughout the buying process is key to developing innovations, updates, or new features that help maintain high conversion rates and completed transactions.

From the search engine to the issuance of the bus ticket, the Product and Technology teams ensure that the experience is efficient, agile, and safe for travelers; while, hand in hand with Customer Success, they guide the members of the bus company to know and delve into the most important metrics of their eCommerce, such as traffic, conversion, payment acceptance rate, chargebacks, among others. 

In this way, maximum use of the new tools and functionalities implemented is guaranteed. In addition, continuous support and periodic analysis are provided to adjust strategies, thus ensuring the success and sustainable growth of direct online sales channels, such as eCommerce and Apps.

Digital evolution helping bus companies regain control of their business

During the integration process, according to José Luis, there is often resistance from the bus companies’ technical teams. Reservamos SaaS’s job is to build relationships of trust, show the capabilities of each of the solutions, and empower each member of the bus company so that, through the constant use of each tool, they can exceed their growth goals. In this way, key teams and areas such as IT become more relevant.

The objective of Reservamos SaaS, as a technological ally, is not only to help companies sell more. But also to elevate all positions within the bus company, so that they acquire greater capabilities, skills, and knowledge about their digital channels. This, in addition to being a strengthening opportunity for the company, allows each member of the bus company to increase their experience and grow professionally. 

How does Reservamos SaaS assist bus companies? By sharing experiences, understanding their goals, and identifying their main challenges, we work together to overcome them. With this objective in mind, at the end of each integration, the operational teams view Reservamos SaaS as an ally, and a bridge of trust is established to expand into other areas.

My job as Head of Customer Success is to accompany the companies, so that any initial fear and distrust in the process, becomes confidence that we will reach their goals faster. To make them see that they are in the hands of an expert team that has done implementations in several countries in the Latam region, with great results. Because we know where to put the focus, for an optimal production output and follow-up to the target metrics. At a technical and product level, we have traced the best route for an implementation that leads to the digital success of each partner company.  – José Luis Landaeta, Head of Customer Success at Reservamos SaaS.

Get to know your traveler better with data analytics 

by Marisol Morelos | Jun 20, 2024 | eCommerce

Transform the traveler experience, personalize services, and optimize operations with the help of an eCommerce platform.

Understanding your traveler is not just a competitive advantage, it’s a necessity. User experience has become the heart of the industry, and every interaction counts in building a lasting and satisfying relationship. However, how can we truly understand travelers’ needs, wants, and behaviors?

The solution can be found in data analytics. With a large volume of information being generated at each step of the purchasing process, including destination research and post-trip reviews, there is a special opportunity to gain insights into and comprehend trends that can revolutionize the operations of bus companies.

But what types of data can be measured, how can it be analyzed, and how can the insights be applied to deliver personalized experiences to travelers? It might seem complex, or you might think you need more than one tool.

However, your eCommerce platform enables you to gain a better understanding of your travelers, their interests, and needs, and to have essential metrics at your fingertips when they make an online purchase for bus tickets. 

eCommerce, the ally to know your traveler

An eCommerce platform offers significant advantages to a company, such as access to data at any time of the day. This eliminates the need for multiple employees working different shifts to handle bus ticket sales. With an eCommerce platform, travelers can purchase tickets at their convenience, and the bus company can analyze each stage of the purchasing process and make real-time adjustments if needed.

Availability and accessibility for travelers also make it possible, for example, to track user behavior on the website and learn about:

• Sections of the site that are of interest to them.
• Times they consult a route.
• Dates and times they are most interested in.

In the last edition of Reservamos On-Road Talks, Alexandier Meza, general manager of Roll&Bits, shared that thanks to the eCommerce platform developed by Reservamos SaaS they have been able to know which transportation service (bus or van) is more attractive to their travelers. 

Data analysis becomes essential to know our travelers better. Through data, a purchase history is generated where, without logging in or registering in eCommerce, we can group users according to their behavior. In the purchase process, they complete data that are essential for us. By cross-referencing this information, we can identify our travelers even if they have not registered. This can help us with future strategies and increase loyalty. – Alexandier Meza, general manager of Roll&Bits.

That’s why this digital sales channel helps to have greater operational efficiency, reduce costs, and improve the shopping experience, by knowing what they prefer when purchasing a ticket online. 

Personalized shopping experiences

According to Alexandier, the focus should be on analyzing traveler data. Understanding what the user is looking for allows companies to generate personalized shopping experiences. 

We need to provide personalized services. Travelers are eager for the services we offer to be more tailored to their individual needs. They don’t want to be addressed in general terms; they want to be addressed personally, as Alexandier. Achieving this level of personalization is extremely important, and it can only be accomplished through digitalization. – Alexandier Meza, General Manager of Roll&Bits.

You can even offer a hyper-personalized and AI-driven shopping experience. This is possible thanks to the AI-powered search widget, which allows the user to be given suggestions on the routes they are looking for the most or the last ones they have searched for.

How is the search widget working? This is one of the innovations and updates offered by Reservamos SaaS eCommerce technology. It works through artificial intelligence, assigning an anonymous identifier to that user. 

That identifier assigns an anonymous name to a user, for example, anonymous 99 or anonymous 100. When that user logs back into the bus company’s eCommerce, the bus company remembers who the user is who did the search and makes suggestions based on that search history. 

We have observed that this technique addresses the conversion and agility issues when making a purchase. By eliminating the need to enter your origin-destination, it is presented as a suggestion instead. The user selects the date, completes the payment, chooses a seat, and that’s all. This optimizes the flow of the process. – Alexandier Meza, general manager of Roll&Bits.

Obtaining this knowledge of the traveler, based on data analysis, does not necessarily represent a high percentage of investment. The most viable option is to have a technological partner with these solutions. Alexandier considers that the advantage of having an ally such as Reservamos SaaS invests eCommerce low. 

We know that as mobility transportation companies we have a hard time with technology because the investments are usually very high. We have to spend on a technology team to develop eCommerce, mobile applications, or fleet management systems. Having a partner like Reservamos SaaS that has developed these solutions is very positive. -Alexandier Meza, general manager of Roll&Bits.

Future of eCommerce in the bus industry

Data analytics has become essential for gaining a deep understanding of travelers’ preferences and behaviors. The implementation of technology in bus companies’ eCommerce not only allows them to optimize the availability and accessibility of services but also enables the ability to collect and analyze information, which can be used to deliver highly personalized shopping experiences.

The future of eCommerce in the travel sector holds tremendous potential for advancements driven by artificial intelligence and hyper-personalization. Tools like search widgets and recommendation algorithms are proving their value by enhancing the user experience and boosting conversion rates and completed purchases. The capability to predict and anticipate traveler needs will empower companies to not only meet but also exceed the expectations of their users.

eCommerce represents not only a transformation in the way bus tickets are sold but also an integral evolution in the relationship with the traveler. By leveraging the capabilities of data analytics and artificial intelligence, companies can create unique and more satisfying experiences, ensuring a sustainable competitive advantage in the travel market.

Current status of online ticket sales in the bus sector 

by Marisol Morelos | Jun 4, 2024 | eCommerce

Learn about the adoption of advanced technologies and how bus companies can leverage these changes to deliver a better traveler experience, increase revenue, and stay competitive in an ever-evolving industry.

When discussing technological innovation trends in the bus sector in Latin America, the first thing that stands out is the investment in new buses to replace their fleets. This includes opting for buses that are more environmentally friendly and fuel-efficient. 

According to Statista, with growing concern about climate change and air pollution, travelers are increasingly looking for buses with lower emissions and better fuel economy. 

This has led to increased demand for electric and hybrid buses. In addition, customers are also looking for buses that offer more comfort and amenities, such as air conditioning, Wi-Fi connectivity, and ergonomic seats.

This trend, according to Statista, is particularly evident in countries with large metropolitan areas, such as Brazil and Mexico. Another trend in the market is the adoption of smart technologies in buses. This includes features such as GPS tracking, real-time passenger information systems, and contactless payment options. 

However, technological innovation in the sector has focused, for now, on the offline side by renewing fleets and choosing innovative technologies for bus operations. 

The online side of the industry still has a long way to go to offer a completely innovative experience that involves offering travelers a ticket purchase without the need to go to the ticket office culminating in a bus ride that offers the best amenities.

Digital transformation landscape in the bus sector

Approximately only 15% of Latin American companies (enterprises) have developed their technology for eCommerce and revenue management, so costs and implementation times tend to be higher in terms of technology acquisition and longer implementation times.

The rest (small and medium-sized companies) work with white labels of online travel agencies (OTAs), which has reduced their positioning and lack of data on their passengers to make better decisions in different areas (marketing, operations, finance, SAC), according to an analysis conducted by Reservamos SaaS. 

Based on our analysis, the most used technological tools by bus companies in the region, 90%, are only Google Analytics, Facebook Pixel, or Tag Manager. 

Less than 1% use tools such as Hotjar, a product experience insights platform that provides behavioral analysis and feedback data to help empathize and understand customers, or more advanced tools to know the behavior of each of your travelers, where in the process they leave your website, what is the recurrence of purchase of a person.

There is low adoption of technology and a low percentage allocated to investment in this type of technological tool or solution. Less than 0.5% of the total revenue of bus companies is allocated to IT. 

On the contrary, in the airline sector, the budget allocated to IT service management has gained ground. In 2022 the increase was noticeable, due to spending that reached 4.73% of revenue, compared to the 4.66% recorded in 2021, according to the 2023 Air Transport IT Insights report, conducted by the multinational company SITA. 

Airline investment priorities have focused on improving mobile passenger services, strengthening cybersecurity, and enhancing cloud services capabilities.

According to the report, airlines are also betting on data management for business intelligence, data exchange technologies, Artificial Intelligence, and radio frequency identification and tracking of baggage (RFID).

Against this backdrop, how can bus companies join the digitization of their ticketing channels? Below we share with you the route they could follow to avoid losing the opportunity to take control of their sales and increase their revenues. 

How bus companies can go digital

In order not to be left out of the digitalization process, bus companies have the option of adding a technological partner that has the expertise to help them take control of direct ticket sales. 

For example, Reservamos SaaS works as a technological ally that helps to evolve the digital sale of tickets, through a dynamic, efficient, and customizable platform for any brand and needs.

The Reservamos SaaS eCommerce platform helps bus companies enhance their digital channels, boost sales, and cut costs. It offers a robust analytics tool for understanding traveler behavior through data.

The data is 100% owned by the bus company, with 24/7 access. In addition to having different payment gateway options, adapted to the most popular in each country, and ticket distributors.  

The eCommerce platform of a technology partner like Reservamos SaaS aims to ensure better digital shopping experiences. Especially in a context where consumers have become accustomed to the convenience and speed of online shopping, bus companies have had to adapt quickly to meet these new demands. 

It is almost impossible to survive in a scenario without digitization. The decision to change does not come from the companies but from the customers. We decided that we love to have everything on the screen of our smartphones and computers. No turning back. -Thiego Paes, Country Manager for Brazil at Reservamos SaaS.

This transformation has been driven by several factors, such as the increased use of mobile devices, Internet penetration in urban and rural areas, and the need to offer more secure and efficient purchasing solutions in a post-pandemic world.

Online ticketing not only facilitates the purchasing process for passengers but also provides companies with valuable opportunities to collect data and personalize their services. 

In some countries in Europe and North America, it is estimated that between 30% and 70% of bus tickets are sold online. In emerging markets, this percentage may be lower, but it is growing steadily.

In Brazil, one of the largest markets, it is estimated that between 40% and 50% of bus tickets are sold through OTAs. While in the direct channel, sales represent 10-15% on average.

Revenues in the bus ticket market in Latin America are expected to reach US$3.36 billion by the end of 2024, according to Statista. 

Revenues are expected to show a 2.37% annual growth rate, resulting in a projected market volume of US$3.69 billion by 2028. As for the number of users, it is projected to reach 60.31 million by the same year, according to Statista.

Of the total bus ticket market revenue, 56% is going to be generated through online sales by 2028. Therefore, the digital channel will become increasingly important for bus companies’ revenues in the region.

However, it is important to consider that an eCommerce platform is the gateway for a digitalization process in a bus company. 

Digitalization is not having an eCommerce site, but a set of data management, personalization technology for customers, offering the best prices for the right customers, analyzing the market for decision-making, and simplifying the customer’s buying process. -Thiego Paes, Country Manager for Brazil at Reservamos SaaS.

According to Thiego, an eCommerce site is the easiest and initial step to start the digitalization and customer service process. He believes that digitalization will allow bus companies to achieve 3 milestones:

1. Take care of the customer and offer the best product for travelers.
2. Knowing the customer and understanding how the product can help them simple and objective way.
3. Taking care of the business to offer the best service, at the best price (not the cheapest, but at the price that the traveler needs as a value proposition) and with more efficient and simple processes that allow generating more value for travelers.

The digital transformation process is complex and requires significant investment. Additionally, experts in this field are increasingly hard to come by in the market. Finding a business partner who is a technology expert with relevant experience can greatly expedite the transformation process and add significant value. -Thiego Paes, Country Manager for Brazil at Reservamos SaaS.

How to leverage data to improve the traveler experience

Leveraging data to improve the traveler experience is essential in today’s digital world. Bus companies can use information gathered from various sources, such as the online direct ticketing channel, to offer more personalized, efficient, and satisfying services. 

On the part of travelers, a trend is beginning to prefer to buy in the direct channel because it generates greater trust and the benefits that companies provide for their loyalty to their brands. This is a trend in the hotel industry, where one major player, Marriott, has seen membership in its loyalty program grow by a third in three years, and after executives touted the loyalty program as a cost-effective way to acquire customers.

Last year, Marriott reported record direct bookings. Direct bookings allow hotels to avoid the 10% to 30% commissions that online travel agencies charge, according to Skift.

Here’s how you can leverage traveler data to drive direct ticket sales:

1. Personalizing the traveler experience

Use data to better understand your passengers’ preferences and behaviors. With this information, you can personalize offers and recommendations, such as suggesting frequently used routes, offering preferred seating, and sending relevant promotions.

2. Price optimization

Analyze purchase data and demand to dynamically adjust prices. This not only maximizes revenue but also ensures that passengers find attractive pricing options based on their needs and shopping times.

3. Improved customer service

Data can help identify common problems and areas for improvement in customer service. With this information, you can implement proactive solutions, better train your staff, and offer more efficient and friendly service.

4. Loyalty programs

Create and adjust loyalty programs based on purchase and behavioral data analysis. Reward frequent travelers with points, discounts, and other benefits that they truly value, thus incentivizing loyalty and direct bookings.

5. Marketing segmentation

Segment your customer database to send targeted communications and offers to different groups. This allows for more effective marketing campaigns, ensuring that messages reach the right audience at the right time.

6. Improved route and schedule management

Analyze travel patterns to optimize your bus routes and schedules. This not only improves operational efficiency but also ensures that you are offering options that fit the needs of your passengers.

7. Simplified shopping experience

Use data to simplify the booking and purchasing process. Implement features such as auto-fill information, recommendations based on past purchases, and preferred payment options to make the process faster and more convenient.

8. Feedback and surveys

Collect and analyze passenger feedback to better understand their needs and expectations. Satisfaction surveys and comments can provide valuable insights on how to improve the traveler’s experience at different stages of the journey.

The current state of online ticketing in the bus sector in Latin America reveals both significant challenges and opportunities. While companies have begun to invest in more modern and greener fleets, true digital transformation is still in its early stages. The adoption of advanced technologies for sales management and customer service personalization remains limited.

The evolution to a more digital sales model is not only about having an online presence but also about integrating analytics and data management tools to enhance the traveler experience and optimize operations. Companies that leverage these technologies will be able to offer more personalized and efficient services, increase customer satisfaction, and ultimately increase revenue.

The online bus ticketing market is experiencing significant growth, and there are positive projections for the future. However, to take advantage of these opportunities, companies need to invest in strong technology platforms and strategic partnerships. These investments will not only improve the booking experience but also provide valuable data for making informed and strategic decisions.

Digitization of the ticketing channel is not just a trend, but an urgent necessity for bus companies in Latin America. Those who adopt these technologies will be better positioned to meet the demands of travelers and remain competitive in a constantly evolving market.

The value of direct booking versus agencies in bus ticket sales

by Marisol Morelos | May 24, 2024 | eCommerce

We analyze the value of direct booking, assessing its impacts on operational efficiency, traveler satisfaction, and business profitability for bus companies.

In the digital age, the bus transportation sector faces a crossroads in its sales strategy: should companies focus on encouraging direct bookings or rely on ticketing agencies? This dilemma is crucial, as each method presents unique advantages and particular challenges.

Direct booking allows bus companies to control the traveler’s experience, from ticket purchase to after-sales service, while maximizing their profit margins by avoiding third-party commissions.

On the other hand, ticketing agencies offer a consolidated platform with broad visibility and access to a diverse audience. In this article, we will explore the value of each approach, analyzing their impacts on operational efficiency, traveler satisfaction, and business profitability. 

Value of direct booking when buying a bus ticket

When we discuss the primary value of direct booking, versus travel agencies, the benefits of passengers and bus companies must be considered. To do this, we will break down how each benefits from direct booking when purchasing bus tickets.

According to José Luis Landaeta, Head of Customer Success at Reservamos SaaS, the value for the bus companies and the traveler is as follows.

For bus companies

• Cost reduction: they save costs by not paying commissions to OTAs, and they can also increase the margin of each transaction with actions such as round-ticket sales.
• Data: data collection remains within the brand, i.e., they can access and consult any information needed at that moment and not depend on a third party to send you information that may be filtered in a certain way.
• Liquidity: to have their income directly and not depend on the OTAs to send them the sales according to their policies. In their direct channels, the money goes directly to their bank accounts. 
• Experience: the brand knows and knows all the traveler’s behavior within its own online sales channel, and even in other channels, such as the ticket office, which allows it to offer an experience that meets its service standards.

For the traveler

• Price: direct sales have the best price because the traveler can save money. By buying directly on the site, you avoid commissions and markup (additional fees) that OTAs usually charge.
• Promotions: you may find promotions that are only available on brand pages. For example, some brands send anniversary promotions exclusively on their direct channels.
• Booking or purchase management: consumers have a better experience in direct channels since they have more customization in routes, preferred schedules, and seat selection. In addition, customer service is simpler when it comes to a purchase within the direct channel. Changes and cancellations are easier to process since they are in direct contact with the brand.
• Loyalty: when buying directly with the brand, they have access to loyalty programs that generate benefits not found in other channels.

Regarding the management of revenue from the sale of bus tickets in agency versus direct channel, the main difference is that in direct sales the revenue falls directly to the brand’s accounts. 

With this, the companies have the daily settlement of sales, so they can have their financial strategy adequate to their cash flow, plus the profit margins are higher because they avoid paying the high commissions that OTAs have.

Advantages and disadvantages for a company that markets its digital ticketing through an OTA

In the digital age, selling bus tickets through online travel agencies (OTAs) has gained significant popularity, offering both advantages and disadvantages for bus companies. On the one hand, OTAs provide an established platform with a wide audience and global reach, which can result in an immediate increase in sales and visibility. 

However, relying on OTAs can also imply several challenges, such as reduced profit margins due to commissions; loss of control over the direct relationship with the traveler; potential conflicts in price management and promotions; and above all, one of the most important, limited access to data on traveler behavior, which hinders the possibility of converting that advantage into strategies that drive growth, such as the creation of new functionalities or updates to eCommerce, in line with market trends, the traveler and new technologies. 

Based on the experience and knowledge of the Customer Success area of Reservamos SaaS, led by José Luis, we share with you the advantages and disadvantages for a bus company marketing its digital tickets through an online travel agency, offering a comprehensive vision for companies to make informed decisions about their sales strategies.

Role of promotions and offers in the choice between direct booking and travel agencies

According to José Luis, if in the direct channel bus companies have a differentiated (better) price and also offer an adequate shopping experience with excellent after-sales service, the balance is increasingly tipping towards direct purchase where the traveler has 3 important aspects in his favor: price, experience and control of his booking. 

Promotions and special offers can influence the traveler’s perception of value, making one option more attractive than the other, based on the additional benefits offered. In addition to value, travelers can review where they have the best experience, control of their booking, and after-sales service to make the purchase. – José Luis Landaeta, Head of Customer Success at Reservamos Saas.

What steps should bus companies take to promote direct bookings?

In order for bus companies to optimize their sales and strengthen their relationship with their travelers, it is crucial that they implement a number of strategies focused on direct bookings. 

Implementing these strategies not only optimizes direct sales but also improves the traveler experience and strengthens the competitive position of bus companies in the market.

José Luis shares some essential actions that all companies should be taking.

Dynamic pricing: Provide exclusive pricing for direct bookings, incentivize advance purchases through a pricing strategy, activate discount codes in special seasons, and adjust prices in real-time based on demand and other market factors.

Additional benefits: Include additional benefits for direct bookings, such as priority boarding, and preferential seating for direct channels only.

Loyalty programs: Implement loyalty programs that reward travelers for direct bookings by accumulating points that can be redeemed for future discounts or additional services. This increases retention rates and the base of loyal travelers.

Digital marketing campaigns: Use digital marketing to drive traffic to the official website, including social media advertising, SEO, SEM, and email marketing campaigns.

1. User education: Communicate to travelers the benefits of booking directly, such as lower prices, exclusive offers, and better customer service.
2. Retargeting: Implement retargeting strategies to engage travelers who visited the website but did not complete a booking or abandoned the shopping cart.
3. Price transparency: Communicate final prices clearly and transparently, emphasizing that direct sales avoid surprise charges.

Competitive pricing: Ensure that prices in the direct channel are competitive with those offered by OTAs (at least 10% lower in the direct channel).

Exclusive offers: Create exclusive offers and packages available only through direct booking.

Data analytics: Use data on traveler behavior in the direct channel to better understand traveler preferences, develop personalized marketing strategies, and improve the traveler experience.

Feedback and improvements: Collect feedback from travelers on their direct booking experience and use it to make continuous service improvements.

It is important to recapitulate the importance of having control of the direct channel when selling bus tickets online. Especially with the help of specialized technology such as that offered by Reservamos SaaS, because in this way, companies will be able to offer greater personalization to travelers about routes, preferred schedules, and seat selection, i.e., the components of the search.

Here is a summary of the main advantages of personalization:

• Improved user experience: Having control over the sales platform allows the company to continuously improve the user interface and experience, making it easier to navigate, book and manage trips.
• New product development: With direct access to customer data, companies can identify emerging trends and demands, enabling them to develop new products and services that better meet their customers’ needs.
• Rapid testing and adjustment: Direct selling allows companies to test new offerings and adjust them quickly based on customer feedback, accelerating the innovation cycle.
• Exclusive promotions: By selling directly, companies can offer exclusive promotions and discounts to their customers, incentivizing direct bookings and building a loyal customer base.
• Personalized promotions: Companies can create customized promotions and discounts for different customer segments, optimizing revenue and customer satisfaction.
• Digital marketing: With direct access to customer data, companies can develop more effective digital marketing campaigns, using advanced segmentation and targeting techniques.
• Differentiation from the competition: By innovating in their own sales channel, companies can differentiate themselves from the competition through unique features and a clear value proposition.

Through the direct channel, companies can also take control and make decisions for constant innovation in terms of improving their eCommerce and data usage. 

At Reservamos SaaS we maintain a constant pace of innovation in the solutions that make up our technology ecosystem. For example, our Product Designer team completely revamped the search system in our partners’ eCommerce, which benefited bus companies that use this service by prioritizing their direct sales channel. 

In another case, by having control of the data through the direct channel, is that Marketing Automation strategies can be generated with the help of solutions such as ReservamosONE, an intelligent system that unifies a user’s interactions with the different sales channels (online and offline), to create personalized pricing and marketing strategies. 

Companies that decide to sell tickets directly online can implement personalization strategies on their platforms, offering recommendations and promotions based on the customer’s history and preferences.