Data Analytics brings endless opportunities for the travel industry. A large amount of valuable data is generated at every stage of a trip and with a lot of people traveling around the globe, this data can offer significant insights. Travelers buy stuff online, create an itinerary, save dates on calendars, use GPS to reach their destination and so on. At every stage of their trip, they leave a data trail. The experts now analyze this data and infer various insights to enhance the customer traveling experience.
However, collecting this data and connecting it is a bit of a challenging task for data analysts, but the discernments obtained can revolutionize the travel industry and make this venture a more profitable business than it was ever before. There are several ways in which data analytics services are currently assisting the travel industry to do better and meet its goals.
Machine Learning and Artificial Intelligence are picking up traction in the travel industry to help airlines and hotels make data-driven decisions based on accurate and actionable insights. Business analytics provide real-time insights about customers using data from multiple sources. Data like flight bookings, hotel stays, schedule patterns, repeat bookings, flight preferences, and so on is collected from websites, apps, social media, customer accounts, etc., and stored in a centralized database. This data is cleaned and processed to avoid redundancy.
Analytical tools are used to analyze this data in real-time and share insights with the business to help make strategic decisions. Business analytics in the travel industry help airlines and hotels understand customer behavior and market trends. When the airline knows what a customer expects or wants, it can customize the services to enhance customer experience and thus inspire brand loyalty.
Business analytics helps in the data-driven transformation of the travel industry. The pandemic has pushed the travel industry into losses and havoc. Business analytics is a way to bring the necessary change and empower the airlines to recover from the dire situation and come out stronger.
Experts claim that the use of predictive and prescriptive analytics will be a game-changer in the industry. Data science and predictive modeling can help airlines uncover critical intelligence to provide real-time actionable insights that help in recovering and gearing up to make the most of new market opportunities.
An important aspect to consider is automation. Even though many businesses are already using data analytics, they spend too much time, energy, and money on cleaning the data rather than running analytics and using the insights. Artificial intelligence and machine learning make automation possible by streamlining data collection, cleaning, and storage processes. This gives airlines more time to run queries and use the insights without delay.
To build an effective business strategy it is important for an organization to be aware of its customer base and its preference. With the help of data analytics and predictive analytics tools, the data collected in the form of feedback, customer reviews, social media posts, etc. is utilized to infer the behavior pattern of the customers. This, thus, causes the organizations to comprehend their customer’s needs and offer services that will bring them more benefits. The bits of knowledge are utilized by the firm to tailor customized plans for its clients. Better services offered by the firm not only help to retain loyal customers but also boost sales and improve reputation.
When a traveling firm uses data analytics services to distinguish itself from its competitors, it is able to create lucrative offers that cater to the needs of the clients and at the same time help you to gain an edge over others.
For instance, Amadeus (a Global Distribution System) allows its users to ask simple travel-related questions without entering any personal details. The questions can be as basic as – When will I get the cheapest flight to Italy? Or is it possible to travel somewhere for just 700 $?
These types of services make it very convenient for users to clear their travel-related doubts and get reliable advice. Once a customer starts to trust the product, he/she will definitely return to use it and in the process become a loyal customer. However, retaining customers is another challenge that must be carefully dealt.
While planning travel, money is one of the major concerns. People spend hours and days finding that one tour package that can offer them the best deals without cutting a hole in their pocket. But how would the firms know beforehand what the customer wants from them?
The simple answer could be data analytics. All searches made by the visitors’ on a firm’s website can be used to infer the budget that a major chunk of people can afford to travel. Keeping this in mind a well-tailored travel plan can be devised and placed on the website. This is the strength of applying data analytics, you can predict what will happen next. For instance, firms like KAYAK have been using data analytics to forecast the changes in flight prices for the coming seven days.
Taking upright decisions is one of the key aspects of improving a business. With the help of data analytics, travel planners are able to draw better choices based on real predictions and not just intuitions. Data analytics allows the firms to develop customers’ profiles and thereby helping them to accurately target the market campaigns.
As per Forrester, data analytics tends to increase customer responsiveness up to 36%. Being able to comprehend the demand of the customer and recent ongoing trends in the market lets the companies peep into the future and perform accordingly. The famous Nippon Airways uses data analytics to optimize its cargo management system thus making it one of the largest airlines in Japan.
Having data analytics at your disposal prevents painful losses and enhances revenue for the travel industry. To understand this, consider a situation where there is a group of people who have their bookings to fly from the USA to London the next day, but due to some reasons the flight got canceled and all their bookings will be wasted.
In this case, the group is ought to give negative feedback to the airlines for not giving them a prior notification or for being dissatisfied with their services. In such a scenario, you may use the power of data analytics to warn them of flight cancellations or help them choose a travel plan that is more certain.
People will always look forward to going on a vacation and spending quality time with their friends or family and therefore travel will never go out of trend. So if you are the owner of a travel agency or are related to the business in any form, the opportunities for you to help your traveler achieve the absolute holiday are endless. Incorporating data analytics into the business will offer you insights that will empower your growth.
Expert groups, like DataToBiz, can help you analyze the customer data and let you know where you need to add value so as to come up with a never-like-before experience for your client. If there is a problem, they can find a way to resolve it, just by drawing efficient evidence all data could bring out, analytics tools and expert methods being their path. The professionals here hold expertise in the field of machine learning, data analytics, predictive analytics, and artificial intelligence.
If you are looking for specialists that can assist you in implementing data science into your business, contact us