Cost reduction techniques: Lesson for travel app development
Tags: startup, costreduction, strategies
Published: 2021-08-12 08:15:59

*Apparently, the [travel software development](https://adamosoft.com/travel-hospitality-software-development) market becomes more competitive, which leads to small companies or startups demanding cost reduction techniques to maximize their profits*

Indeed, applying **IT cost reduction strategies** is now an essential requirement when travel startup demand to set foot in this competitive market. These cost reduction methods can support small businesses in managing their budget more effectively and avoiding the redundant cost that is unnecessary. From that, a business can minimize their development cost, focus on what is vital in the development process, where to hire a dedicated development company, which area they should spend. Therefore, cost-cutting strategies for companies are now needed more than ever. 

##Advantages of applying cost-cutting techniques
By applying effective types of cost reduction techniques in software development, a business can spend their money to enhance other activities, including marketing, customer services, and employee support.

As the profit is increased, management may spend more on providing amenities to workers. It will ensure more productivity at work and more cordial relationships between management and workers; also reduce the labor turnover. 

With the money spending on the essential sector, the travel business can create competitive advantages over competitors. Travel app publishers can deliver different practical functions to users and continuously search for improvement based on user feedback. Also, the quality of the app can also be enhanced to reduce the concerns of bugs and lags from mobile travel users. 

##Factors affecting travel app development cost
Cost reduction technique
**1. The number and complexity of features:** Definitely, the number of features and their complexity is one of the critical factors that affect travel app development cost. The less time and effort to build the software, the lower the price will be.

**2. Operating systems:** The travel app development cost depends on the type and number of operating systems, such as IOS, Android, Windows, Linux, etc. For example, developing a native software solution for IOS only will be less costly than for IOS and Android. 

**3. UI and UX design:** UI and UX design is a critical development stage that businesses should focus on. Design size and complexity affect the budget for developing a software project. More screens, pages, handcrafted elements, complex animations will lead to more cost of this stage.
 
**4. Quality assurance:** In this process, QA engineers will check the system for bugs, errors, and compliance with the project specification. Also, they have to ensure the software provides a consistent user experience on all devices and platforms. Glitches, maintenance, bugs are the problems of the increase in final price.

**5. Third-party API integration:** In the software development process, third-party service integration is necessary to enable functionality. With API integration, engineers are able to save time and effort. 

###Cost reduction methods for travel app publishers
Most new businesses, when starting developing travel apps, usually pay for services that not necessary. They mostly pay for their tools, vehicles, applications, services, and even excessive fees. That’s why travel app businesses need cost reduction consultants to ensure they are following the correct methods. Bellow are most effective IT cost reduction strategies:

####You should start with evaluating your business expenses
Among cost-saving methods in a company, evaluating the expenses is the most effective one. Travel app publishers can cut down unused services and products, vendors that are bugging down. Businesses need carefully considering which elements are crucial should be invested in travel app development. The money from redundant services should be spent on organizational growth campaigns to increase business efficiency quickly. 

####Understand target market
Defining a target market is a massive priority for reducing costs. In the tourism industry, rather than spending money to create an app similar to competitors, businesses should focus on finding answers to solve traveler’s problems. From that, businesses can avoid marketing costs, advertisement costs as users have to install the unique app to get the solution. 

####Hire remote contractors and freelancers 
Of course, hiring a freelancer can be a very effective cost reduction strategy for your business. Businesses can avoid the cost of renting office space and co-working offices. Additionally, companies don’t need to provide benefits to freelancers because they are often self-employed. 

####Automate as much as possible 
Automation is about replacing humans with computers to smaller timeframes for production, meaning fewer person hours and consequently reduced costs. Additionally, applying automation in travel app development can enable developers to avoid time-consuming tasks and spend more time on other important ones. 

####Partnering with experts
Definitely, partnering with offshore software development teams can be a valuable strategy for reducing the cost. These outsourcing software development teams can be highly competitive in pricing, especially in countries like Vietnam. Adamo Digital - a professional [software development company] (https://adamosoft.com/dedicated-software-development-team), will provide full-cycle services in software development, especially in the travel industry with the best price on the market. 

####Build a minimum viable product
In those types of cost reduction techniques, MVP development is a valuable method to reduce the cost of developing a software project and faster receive a working solution. This method is widely used to test ideas, attract investors, and better time-to-market.

**Where to develop a mobile app for travel?** *As mentioned above, Vietnam is the ideal place for travel startups who want to develop a mobile or web application due to its competitive price.*