In a world driven by technology and the rise of e-commerce, the travel industry stands at the forefront of innovation. With data analytics as their compass, travel companies are navigating uncharted territories to unravel the secrets hidden within their vast pools of information.
As the Indian Data Analytics industry gears up to touch the staggering USD 118.7 billion mark by 2026, the transformative power of big data and analytics is reshaping the travel landscape.
In this era of digital transformation, travel businesses are embracing the boundless potential of data to gain actionable insights into customer behavior, preferences, and market patterns. Armed with this knowledge, they are rewriting the rules of the game, propelling the industry into an era of unprecedented innovation and redefining the way we explore the world.
The convergence of technology and data analytics has become the driving force behind their quest for success, allowing them to navigate the ever-changing landscape with confidence and effect positive change in an industry defined by limitless possibilities.
FICCI and Nangia Andersen released a knowledge paper, ‘Unlock the Potential: A Look into Outbound Tourism’ during the second Outbound Tourism Summit in Delhi which highlighted that India’s outbound tourism has been experiencing a rapid growth in the recent years. Indian travellers are spending considerably more on their outbound trips.
Harnessing the power of data analytics
Data analytics in the travel industry involves employing cutting-edge analytical techniques to analyse customer behaviour, preferences, and transactional data. By extracting valuable insights and identifying trends through data analytics, travel companies can enhance their products and services, refine targeted marketing efforts, and ultimately boost revenue. Accenture predicts that digital transformation will add USD 305 billion annually to the travel industry, with USD 100 billion allocated to new businesses that prioritize a digital-first approach. To maximise the returns on customer information, travel companies must build a data-driven company culture.
Let us explore how data analytics and E-commerce are currently being used in the travel industry:
Breaking down barriers and embracing personalisation: Despite personalisation being a top business priority, 65% of travel executives, according to Accenture, admit they have yet to deliver on its promise fully. Overcoming the entry barriers to effective personalization requires significant time and effort.
By meticulously analysing customer data such as search queries, past bookings, and browsing behaviour, travel companies can craft highly targeted marketing campaigns personalised to individual customers. This approach increases conversion rates, enhances the overall customer experience, and fosters loyalty.
New research by Audencia Business School has reveals that most hotel customers experience positive emotions when they interact with physical robots. Specifically, hotel guests feel strong positive feelings such as joy, love, awe/surprise, interest, and excitement when served by robots. The researchers also found that families and couples are the most impressed by robots compared to business customers.
Effective customer segmentation: Segmentation emerges as a strategic tool, allowing travel companies to decipher travel trends and preferences. By categorising customers into distinct segments, companies can curate bespoke products and services that cater to the unique needs of each group. Frequent travelers may find exclusive perks through airline loyalty programs, while hotels offer tailored room service options based on guests’ dietary preferences.
Predictive analytics: It has emerged as a powerful tool for understanding customer behaviour and preference and anticipating market trends. This valuable insight allows travel companies to make well-informed decisions concerning pricing strategies, targeted marketing efforts, and product development, ensuring they stay ahead in a competitive landscape.
Market research: Beyond customer-centric insights, data analytics provides a window into the world of competitors. By analysing pricing, product offerings, and customer reviews, travel companies gain a deeper understanding of their rivals, enabling them to differentiate themselves and offer unique value propositions. This knowledge fuels improvement, expands offerings, and attracts a growing customer base.
Boosting operational efficiency: Operational efficiency receives a much-needed boost through data analytics. By analysing critical data points such as flight delays, baggage handling, and check-in times, companies identify areas for enhancement, improving the overall customer experience while optimising costs. From proactive measures to minimise disruptions to improving on-time performance, data-driven insights reshape operational landscapes.
To conclude, with the rapid progress of technology and the rise of e-commerce, there are myriad ways in which data analytics plays a crucial role in the digitally driven world. By embracing data analytics, travel companies can navigate the evolving landscape and effect positive change in the industry.
The author is Business Head, E-commerce Solutions, Paxcom.
DISCLAIMER: The views expressed are solely of the author and ETTravelWorld.com does not necessarily subscribe to it. ETTravelWorld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.
