SaaS Business Model Explained
The Software as a Service (SaaS) business model is changing the way software businesses sell products. I read a Tnooz article recently noting the popularity of SaaS, whilst pointing out only 4% of software sales are with the SaaS model. This got me thinking.
Do tour operators interested in moving their business forward understand the SaaS pricing model? I thought it best to list the benefits to the potential client and hopefully explain why Tourwriter uses the SaaS business model to sell our travel software.
It is important to remember the choice tour operators make when selecting a travel software provider is vitality important to the profitability of their business. So here goes. The top 5 reasons to purchase software as a service for your travel business:
- Rapid Deployment – Easily access the latest version of Tourwriter software, downloadable to any number of PCs. You can be set up to go in minutes. Purchasing training and implementation ensures your team will make the most of the software purchase.
- Cost of development spread – The cost of developing software programs can run into the $millions. SaaS model, with a monthly license fee, spreads purchase (user) price over the period of use ensuring accessibility to a small business. No upfront cost ensures a better Return on Investment.
- Measured Billing – You only pay for what you use. Increase or decrease users based on need means less waste. Our clients are also able to budget and plan based on fixed agreements.
- Reduced IT costs – The cost of maintaining the software is born by the developer meaning you are outsourcing maintenance and support. So no need to hire in-house IT staff. Less hassle and no cost.
- Upgrades Included – The subscription model means development on the latest Tourwriter version never stops. Improvements are ongoing and the feature list continues to grow based on client recommendations with auto updates occurring most months.
The cost of software to those businesses investing in software for the first time can sometimes be a shock. It is important to remember the cost of your current manual processes will be far larger. You may not be currently accounting for them, however. Now is the time to calculate how much your manual system is currently costing you.
By not adopting new technologies you risk becoming irrelevant as your competitors move forward. This was mentioned in another Tnooz article. Food for thought I hope to develop in a future post.