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Build vs Buy — Travel and Tourism
Weigh SaaS subscriptions against a custom build for Travel and Tourism — see the multi-year total cost of ownership and which path wins.
What this means for Travel and Tourism
- OTA commissions eat 18-25% of room revenue — direct booking strategy has been a board-deck topic for five years and the OTA share keeps climbing.
- Dynamic pricing is theoretically automated by the RMS but in practice the revenue manager overrides it daily based on instinct and a competitor-rate spreadsheet.
- Customer data is fragmented across the PMS, CRM, loyalty program, OTA channel, and call center — the same guest is unrecognizable across surfaces.
Where it pays to act
- Demand forecasting and dynamic pricing models that incorporate event data, search trends, and competitor rates — and that the revenue manager actually trusts.
- Direct booking conversion — AI-powered personalization on the brand site, abandoned-cart recovery, and segmented offers based on guest history.
Adjust the inputs to match your Travel and Tourism context.
Total cost of ownership
SaaS total (3yr)
₹19.9 L
Custom build total
₹21.8 L
Difference (cheaper to buy)
₹1.89 L
Breakeven
—
What this means
A hybrid path fits best.
For Travel and Tourism, the gap is ₹1.89 L over 3 years — close enough that a hybrid approach (buy core, build differentiating layers) often wins.
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Build vs buy — summary
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