Making connections: Using SOA to enable collaboration in travel and transportation

Heavy burdens are being placed on the travel and transportation industry as international travel and trade expand, influenced by increasing governmental regulation surrounding identity management, ports and border management and trade policy enforcement. Delays, consumer frustration, economic loss and security breaches are often the result. Among the challenges faced is how to reconcile profitable, yet secure and lawful, travel and trade with heightened information and enforcement needs. While many companies and nations are updating their systems to address local problems, effectiveness is often compromised because of the inability to communicate across platforms. Service-oriented architecture (SOA) can facilitate communication and collaboration among diverse and disparate systems and help create the opportunity to balance freely flowing travel and trade with security and legal issues.

Striking a balance

Travel and trade versus border management
Cross-border travel and trade has been rising steadily for the past decade. In 2007, for example, international tourism arrivals worldwide grew 6 percent to almost 900 million, and international air traffic grew 9.3 percent.¹ Further, global travel and tourism is expected to increase 4.3 percent per year over the next ten years.² In addition to tourism, migration of workers from one nation to another continues to increase and is helping many countries develop their economies. Global trade, which has averaged a healthy 6 percent growth rate per year since 1975, is expected to grow about 8 percent per year through 2012.³

The increase in global trade demands that the import and export process must better facilitate – rather than hinder – movement of goods. Delays in shipment as a result of the trade regulations of various nations, port congestion and customs inspections have a direct effect on the economies of nations.

But the governmental and congestion barriers are not the only looming threats. Illegal activity, in both travel and trade, is increasing. In international trade, for example, product transparency and traceability, counterfeit and illegal goods, tax fraud and smuggling continue to be major issues. The transportation infrastructure has become a target for terrorists and, unfortunately, also a weapon. Business outcomes with far-reaching impact and sustainable results.

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References

¹ United Nations World Tourism Organization (UNTWO) [According to recent research from the World Travel & Tourism Council (WTTC) and Oxford Economics (OE)]; International Air Transportation Association

² World Travel and Tourism Council 2007

³ WTO World Trade Report 2007; IMF World Economic Outlook 2007

Jeanette Caspersen
Jeanette Caspersen is a managing consultant in IBM Global Business Services.

Jay DiMare
Jay DiMare is an Associate Partner within IBM Global Business Services.