A few decades ago in world history, Napoleon Bonaparte commented that “War is 90% information”. We are not in a war, of course, but war it is we are all wedging against one another to stay ahead in the competition with personalized customer services. Be it a travel company or a big fashion firm, offering tailored services to customers that align with their aesthetic and budget preferences is the new way of conducting business.
For instance –
Keeping in mind the purchase behaviour of the new-age millennials, many travel companies have partnered with travel agent software development companies to offer them with seamless travel planning and booking experiences.
It goes without saying that Big Data has become an integral part of not only the travel and tourism industry but has its wings spread across all other sectors. The fact that once you clearly understand what your end-users or clients expect from your company, it becomes a lot easier for your business to figure out the right set of tools and services needed to please your customers’ whims and fancies. This is where Big Data comes in. The question, however, is what does Big Data imply?
What is Big Data?
Big Data refers to the ocean of information or data, structured and unstructured, inundating businesses daily. But not all information available on the World Wide Web is helpful for your organization. Hence, in the words of Carly Fiorina, former executive, president, and chair of Hewlett-Packard Co., “the goal is to turn data into information, and information into insight”, else, such volume of data will be of zero value for your company.
For instance –
When a customer visits a company website and goes on to fill his personal details such as bank account number, address and other required information, that is data for a company. Also, his search history and purchase behaviour speak volumes about his expectations.
Now, citing the example of a travel company, we have seen that new-age millennials prefer booking travel itineraries online, using such portals that are less cumbersome to use, easy-to-understand, and consumes minimal time. Such consumer behaviours online compelled travel agency software development companies to come up with easy booking solutions to aid agencies to satisfy their impatient customers’ needs.
That is how useful data can be a game-changer for your business, as it has proved for the travel companies and small agencies.
But, filtering out useful information from the ocean of data is not easy. “You can have data without information, but you cannot have information without data”, said Daniel Keys Moran, computer programmer and science fiction author. So, which data is useful for your company and which is not requires in-depth analysis.
Even though, “travel managers need to do a tightrope act that gives them granular data that’s traceable to business units and individuals”, according to Phocuswright, “data analysis still involves manual inputs”, thereby leaving enough room for errors, but we are not digging deeper into that. However, manual analysis or not, big data benefits for the travel and tourism sector cannot be undermined for long.
It is entirely up to the travel agencies and their travel software service partners to figure out how they can filter out useful information from Big Data and incorporate the same into tailoring winning market strategies.
Here is a list of benefits to show how Big Data is reshaping the travel industry.
Big Data benefits for travel and tourism
Big Data Analytics is used by companies around the world, including the airline operators to not only understand passengers’ purchasing and travel patterns but to also capture behaviour insights about different demographics. Such data is useful for travel software companies because they need to understand the end-users of their clients, the travel agencies, in order to design fitting travel booking software and aid their clients in their operations.
The list of benefits are as follows –
For any business, be it a travel company or a travel agent software service provider, market research is crucial to design strategies and decide competitive pricing models, as well as, planning branding and promotional activities to expand their market reach. But market research in the absence of useful data is not possible. Big Data and analytics can fetch useful market information, based on which planning, strategizing and implementation of the same is done to gain positive results.
Understand customer needs
Now market research is all about identifying niches, existing competitors, market prices and demands. Understanding customer needs, preferences, whims and fancies help companies design services to enhance potential customer experiences. After all, Customer is king. If you fail to understand your services’ end-users, then there is no point in staying in business. Big Data can fetch such necessary customer data for your business, travel or apparel, and aid you in tailoring win-win market strategies.
Create a win-win market strategy
Useful data gives a thorough picture of the market, performances of other travel brands and competitive strategies adopted by other key players in the industry. Likewise, data analytics help airlines and railway companies to easily manage their revenue and pricing operations. Also, transportation service providers are notified of best network connectives keeping in mind the market demand. This is how travel companies can improve their revenue earnings and tailor the best travel experiences for the end-users.
The entire tourism and hospitality industry relies on Big Data insights to stay and succeed in their business operations. In fact, if we are surrounded by data that is flowing in from different sources. All we need is to capture them and filter out useful information that will help our services. Such insights will help travel companies design all-inclusive holiday packages and discount coupons based on what travel patterns and behaviours of vacationers. Also, such data aids travel agencies recognize market demand, understand tourism flows and recognize market opportunities accurately.
For instance –
The Cuban Government used Big Data and analytics to capture and analyze data from different social network sites. This helped the Cuban Tourism Board to easily identify problems in government-run hotels and tourist facilities, thereby planning strategies to address such issues and enhance travelling experiences of their customers.
So you see a business, whether it is a travel company or a travel software service provider, hotel or hospital, apparels or gadgets, cannot survive market competitions in the absence of Big Data.