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Adventure Central Posts Gains, Raises Venture Capital…Competitors Emerge

Providing standardized e-commerce infrastructure for tour operators to give potential customers the ability to buy trips in real-time through tour operators’ Web sites, plus other channels such as traditional travel agencies, is rather complex to the layperson. But, one company in the past three years has begun to carve out its space in the adventure travel arena by making it simpler for those who are less technologically savvy.

According to Adventure Central Founder and President Robert Hirsch, “Adventure Central powers the adventure and experiential travel segment with a comprehensive e-commerce infrastructure for tour operators and outfitters.” He describes how his company’s standardized distribution system manages tour operator inventory in real time and allows tour operators to reach other global systems such as Sabre, Worldspan, and others.

“Once you manage in real time online, you can distribute in more places than from your phone,” explains Hirsch. “With offer a software platform that provides full industry connectivity. Now, customers now have the ability to book through the tour operators’ Web sites, global distribution systems, and any other distribution channel, and they’re looking at options that are available in real-time and on their own terms. Adventure Central’s inventory management system will revolutionize how adventure outfitters will do business.”

Hirsch jumped into the category when he envisioned a software solution that could counter widespread beliefs that the adventure travel industry’s products were too diverse and too complex. He set out to prove that outfitters with many complex and custom trips could save time using his solution. And, much of the industry continues to banter about the prospect of such a solution. It seems only time will tell whether Adventure Central (AC) has hit the mark.

Software Solutions for Outfitters

AC’s system allows its customers to custom-build trips on-the-fly through a straightforward decision tree or flow chart – traditionally, a process handled on the phone by customer service staff. AC’s approach is said to have automated the entire process. As an example, four different FIT or “sub-outfitters,” could send out alerts to numerous necessary parties instantly to determine and confirm availability to meet the unique and sometimes complex needs of customers. AC’s system also claims to be integrated with all vendors and includes such things as automatically generated emails and operations alerts, typically delivered to the operations manager.

Full integration on the AC system also allows managers choose to make inventory visible or not. Once booked, the automated system takes over to confirm availability, etc. AC offers a two step process. The first is a suite of back-office tools that allows operators to run their business, while seamlessly integrating with GDS or the distribution channels like Orbitz, Kayak, Expedia, etc. Then, according to Hirsch, “Our customer relationship management (CRM) tools allow operators to target any customer a hundred miles based on a host of variables. It helps our customers manage inventory, even if it’s in the off season, allowing better communication with their customers.”

Hirsch also believes AC’s system greatly improves communication between customers and an outfit’s employees. “Instead of having staff spend time doing back office stuff, they can focus on relationship building activities.”

In addition to its real-time inventory management and new distribution channels offerings, AC (www.adventurecentral.com) provides tour operators with integrated e-business capabilities and customer and industry relationship management tools.

How Adventure Central is Faring

Adventure Central, with an in-house team of 12, counts among a growing customer base that includes Dvorak Expeditions, Expeditiones Chile, Bio Bio Expeditions, and Incredible Adventures. Thirty-five percent of its clients are based outside the U.S.

Its business model is, according to Hirsch, is “100 percent pay for performance. When our customers do well, we do well.” However, it’s the ‘migration costs’ that some businesses hesitate on when considering this automated option. According to industry sources, it’s believed that migration costs tend to range between $7,500 and $15,000 U.S.

Its approach seems headed in the right direction and its Web site, www.adventurecentral.com is replete with client quotes based on their experiences.

Its 2005 revenues are up 800 percent year over year.

In 2005, AC conducted $2.8 million in bookings.

It’s measuring its client inventory in millions. In fact, it boasts eight figures on its total inventory.

Early on, conversion rates on those using the AC system were .5 percent. Today, its conversion rates are between two and eight percent – and rising.

It also completed a significant round (undisclosed) of venture capital funding in Q3 2005. Its new funding was primarily steered toward relocating to downtown Denver and hiring new developers and a sales team. Immediately following its fundraising, it added two powerhouse directors from Microsoft and Cendant. (details: http://www.adventuretravel.biz/release_advcent_1205.asp ).

Competition Lurks

Adventure Central is bullish on the future of this space. “We’re helping tour operators to capitalize on our prediction that more and more people want to book online,” according to Hirsch. “In five years, it’s expected that more than 50% will book online. That bodes well for Adventure Central.”

But, Adventure Central is not alone in this space. It counts distributors HotWire, Travelocity, and Cheap Tickets among its top general travel competitors. Hirsch explains that there are a few, “…three person companies doing software in our industry, but no one is doing distribution except Adventure Central.”

Despite Hirsch’s view, Adventure Engine (www.adventureengine.com), ResLogic (www.reslogic.com), Tripsync (launch scheduled in 2006 – for more info contact James O’Leonard at ), ResMark (www.resmarksystems.com), Megasys Hospitality Systems (http://www.lodgepro.com/), and Oceanic Consultancy Company, Ltd. (www.res-key.com) also are playing in the adventure travel space to varying degrees and are beginning to claim competitive territory. Stay tuned...

In the end, software solution providers that can offer low-cost, high return-on-investment and pay-for-performance solutions are likely to attract the early adopters. But, until these same providers can consistently prove the simplicity and cost-effectiveness of their software booking and e-business solutions, adventure travel tour operators and agents may be slow to relinquish their traditional booking process solutions.