Just think if time stood still
Think about a day at work without the Internet, E-mail and without an automatic reservation system. This was how things were when Patrik Norman at American Express Business Travel began his career in the travel industry. Today, twenty years on, he is still active in the same company and has witnessed a staggering pace of development.
Patrik Norman began his career in the 1980s as a travel agent at SJ Resebyrå, which was later purchased by American Express. Despite the somewhat misleading name, the company offered both air and train travel. The reservation system, which Amadeus today provides, was in its infancy and virtually all work was carried out manually. There were no computers and all information was kept in binders and instead of e-mail, fax, telephone and traditional postage were used. The work involved for each travel reservation was therefore extensive.
“It is difficult to imagine how much time everything took when I started my career in the beginning of the 1980s. At the time it is fair to say that both the number of travellers and destinations were fewer, but those of us making the bookings were fully occupied,” says Patrik Norman who today works as area manager for self-booking at American Express and is also a member of the Executive Group.
Deregulation of the airline market which took place in 1992 had a major impact on the industry. The budget airline alternatives were suddenly out on the market which, in the opinion of Patrik Norman, laid the foundations for the current competitive environment. For the travel agencies, the effects of deregulation included a substantial increase in the number of available destinations. The reservation processes had at this point in time been made more efficient, and the IT systems were developed to appease increasingly more price-conscious customers.
Some years later in 1997, the commissions from the airlines to travel agencies stopped. For American Express and other companies, their business model was thrown into disarray and according to Patrik Norman, the future was seen as selling added value to the customer. Packaging tours with an attractive content was something the airlines were not capable of even though the demand was great.
“It took just one decade to see the deregulation of the airline industry, the scrapping of commission to travel agencies and the arrival of the Internet. These were three events that shook up our industry, and were largely instrumental in shaping the way we work today,” states Patrik Norman.
At the turn of the century, it was not only the industry that had undergone a major transformation. SJ Resebyrå where Patrik Norman started his career, was purchased by Nyman & Schultz, which in turn was purchased by American Express. Patrik Norman had also been on a journey; from working as a travel agent he was given the responsibility in 2001 of heading American Express’s online reservation initiative. With the web based reservation tool, travellers no longer needed to contact a travel agency to book their simple trips.
“The Internet presented our industry with fantastic opportunities, but many were scared of losing their jobs, and an intensive debate raged in the media on this very subject. Knowing what we know now you can see that the traditional travel manager has become more of a travel consultant. You can in principle talk about collective skills development for many in the industry,” explains Patrik Norman.
In the 2000s the web-based reservation tools have broken through with a vengeance. An increasing number of systems for reservations are integrated, and a lot takes place automatically such as processes for orders, invoicing and administration concerning ticket handling.
“The industry still finds itself in a period characterised by substantial change. We have still not fully seen what the impact of the budget airlines and globalisation will mean or how heightened environmental awareness is going to change the travel industry. We can look forward to an exciting time ahead of us,” concludes Patrik Norman.
