Specialization is key

by Darren
(Burlington, ON, Canada)

I have been in the IT field since 1997. In that time I have come to realize the importance of specialization.

When I first started out I was encouraged to learn as many IT skills as possible. It was felt at the time that being a 'generalist' would ensure that I always had work.

However....

... what I began to see was that volume didn't equate to quality. Yes, as a general IT worker I would always be employable, but the salary was lower and the work wasn't as interesting.

As a generalist I wasn't seen as an expert, as a person that could provide value to my clients above what any other IT resource could. As a result, I couldn't differentiate myself from the multitude of other IT workers.

In order to be profitable, I had to find a niche that was both profitable and which had a barrier to entry that would be large enough to discourage others to join but not too high as to render my niche obsolete. Technology changes so quickly. If you are too specialized the market will develop a competing tool rather than continue to pay high costs. The niche market I found was as an SAP implementation consultant. SAP is the largest Enterprise software in the world. It is the IT backbone of most of the largest companies in the world, but still it is not an easy field to break into. As a result I have more than enough work to keep me active, but the supply of active consultants is less than the demand for services. As a result I am always able to increase my billing rates.

I see that in the travel industry this is also true. There are many 'generalists' available to consumers.

At any point during the day an internet connection is the only thing that is needed for a traveller to book a week's vacation in the Caribbean, or trip to Europe. In order to be profitable a travel agent needs to find a niche. The niche needs to be profitable! Clients need to believe that the travel agent's knowledge of their particular niche is valuable enough that they are willing to pay for their services.

Today's travel agent needs to create a travel solution that differentiates them from all the other agents out there. Whether it is a niche based on a specific destination (Trips to Ireland) or a style of trip (Golf destinations) today's agent needs to let go of the notion that they can be everything to all travellers.

Yes, a specialist may miss out on some bookings, but those bookings most likely would not be profitable in the first place. Identify your profitable target or niche, and exploit it!