In our previous post, we introduced you to our ‘Big Data’ report. The biggest question is, what is the benefit of big data for the travel industry? There are several potential benefits, most of which require changes within the business as well as technology.
The benefits of big data for all travel companies include:
- Better decision support
- New products and services
- Better customer relationships
- Cheaper, faster data processing
How can you make better customer-focused decisions?
Travel firms are using big data not just to speed up decisions and data processing, but also to make better internal or customer-focused decisions. Big data allows a business to recognise its most loyal customers and show appreciation through targeted benefits.
Furthermore, loyalty programmes track services that you provide to your customers so that you can identify common problems experienced by your customers and provide the best solutions. Analysing this data allows you to target offers for customer consideration.
Introduce new products and services
One of the most exciting possible benefits from big data is the creation of new products and services for customers. Outside the travel industry, firms such as Google, LinkedIn, and Facebook have pursued this benefit
aggressively. Within the travel sector, the most likely creators of data-based products and services are online travel agencies, travel search firms, and leading technology providers
Form better customer relationships
Since customer relationships have historically been fragmented across a variety of systems and databases, data aggregation should create better customer relationships, and more revenue from customers from better-targeted products and services. Through predictive analytics, the most favored destinations, lodging and dining preferences, ancillary services needs, and tourism experiences can be identified for each passenger. Online analytical services such as price prediction and desirability rankings can increase the likelihood of purchase.
Capatlise on cheaper, faster data processing
New generations of information technology have always been adopted in part because they offer better price/performance ratios. Given the enormous amounts of data that travel companies have to churn through, and the relatively thin profit margins in the industry, the appeal of cheaper, faster big data technologies is obvious.
Clusters of commodity servers running Hadoop and other open-source software can process data at costs fifteen to twenty times lower than previous generations of data warehousing technology.
While many organisations seek a single benefit from big data, there are others who want them all.
How could you use big data to benefit your business?