How Data Analytics Is Driving The Travel Sector
Keeping in mind the dynamic landscape of the Travel & hospitality sector, Analytics proves to be a vital instrument to surmount the challenges of competition, cost pressure and varying guest demands. Today’s customers are well informed and demanding who are looking for better services. In order to sustain and gain competitive advantage, analytics can really play a key role.
Many players in the travel & hospitality industry have started understanding the concept of Analytics, its efficacy and ease in execution. Thus adopting it to create a strong and loyal customer base for the long run. New age travellers are highly connected through mobile devices, tablets and various latest applications which help to search, plan and book their travel itineraries. Social media is also playing a crucial role in connecting travellers to share review and recommendations. What Analytics can do is mine this huge data floating in the travel sector, analyse them and deliver true business value.
How can Analytics help you to get an edge over the competition?
1. Understanding the customer and offering loyalty services – Analytics can provide insights about customers likes, dislikes, preferences, and thus helping to them to offer tailor made offerings based on customers preferences. Analytics can determine a pattern based on observing customer’s behaviour like how much a customer is spending on what items, what he is willing to buy and how much he is ready to spend, what are the best channels to reach him – web, mobile, e-mail. Thus analytics can remove guesswork and help to reach your target customer.
Analytics can also help us to identify loyal and repeat customers and thus allowing us to offer special benefits to them - personalised services, targeted messages, special offers and discounts, add-on value added services. Thus it can further strengthen relationship with loyal customers, improve customer retention through personalised service offerings.
Also in this sector, Customers look for customised services/products. Real-time analytics provide enough information to decide on the price point, mode of delivery of the service etc. Thus Flexibility within the sector is enhanced by Analytics.
Marketing campaigns, advertising and promotional activities can now be more effective delivering targeted messages to key customers. Thus breaking the old marketing paradigm that “I know I am wasting half of my ad/marketing budget, I just don’t know which half.”
2. Increase revenue through Cross-Selling & Up-selling – Analytics can help us in cross-selling & up selling products/ services to the existing customer base through customer segmentation and match it with their purchase history data. This can help us to offer additional products & services to existing customers depending on their choice, requirement, propensity to spend and purchasing capacity.
3. Capacity Planning and Pricing Optimization – Travel players have to constantly offer dynamic pricing to the travellers depending on the demand and supply. At the same time they need to ensure that they utilize their capacity to the optimum, so that there is no revenue loss. Analytics can play a big role as it can extract insights from huge amount of current and historical data and can detect trends & patterns. This will help travel players to forecast and plan well. By analysing competitor’s pricing and market demand, travel players can readjust the prices in real time. At the same time they can ensure that their resources are utilised optimally (minimising number of empty rooms in a hotel, number of empty seats in a flight) and their profitability is not affected. Analytics is a powerful tool, where they can play with various metrics and arrive at optimal decisions on cost, profit and pricing.
4. Operational efficiency – The efficiency of the travel sector depends a lot on their infrastructure and equipments, which needs regular maintenance. Any outage or breakage can result in loss of revenues and dissatisfied customers. Predictive analytics can help us to take preventive measures and detect any break-ups and failures in advance. This can help to take precautions as well as intimating customers in any delay of services.
While analytics enables all of the above, it is imperative that the information / intelligence are delivered through the right channel. The attributes of the right channel will be the speed of delivery, accuracy, usage efficiency and ability to flip from one channel to another without losing current context.
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