* Partner Post
Big data is far from just a buzzword for IT departments across the globe; it now affects practically every aspect of a business from product development to sales and marketing. The travel industry is no exception; just think how much data is generated every single day from customers taking flights and booking hotel rooms alone.
So, what exactly does the rise of big data mean for those in the travel sector, and what are the challenges and advantages it poses?
Big Data and the Travel Industry
The amount of data generated by companies in the travel sector is huge; travel technology provider Amadeus, for example, carries out one billion transactions every single day, for things like flight purchases and hotel bookings. Not only this, but practically every step of a customer's journey is subject to some form of data generation, whether it's checking in for a flight, buying something at an airport, renting a hire car or using their phone in a new country.
Then there's unstructured data; things like reviews and social media mentions that can also prove to be extremely useful when it comes to redeveloping products, altering strategies or even launching new products or services.
With so much data available it's easier than ever before to gain a detailed view of your ideal customer, to target them effectively or even to just find new leads; if you're looking to target Italian companies for example all you have to do now is find a reputable Italy business email list, and you're good to go.
Big Data Challenges in the Travel Industry
However, with so much data available (and much of it complex in nature), there are also challenges facing companies in the travel sector when it comes to establishing insights from the datasets. While having data professionals in your company is a step in the right direction, ultimately ensuring big data is used effectively will require cross-departmental collaboration and a data-lead company culture.
Bad Data
This may seem like an obvious one, but it's worth stressing just how much of a negative impact that incorrect or incomplete data can have on your entire strategy, given the speed in which changes occur in the industry and the huge amounts of data added to your databases every single day.
A lot of the time you'll have customer data in different systems and databases, and unifying all of this information in order to gain a whole picture can be a difficult issue to overcome. Using a data management platform is a good option to help deal with the challenge, but ultimately it needs to be based on high quality data.
Using third-party sources such as a reputable company information database is often a good choice for the B2B sector, as well as having someone to oversee your data strategy and having all members of staff well versed in how to collect and handle data in a careful and efficient manner.
Keeping Up
Another challenge facing travel companies when it comes to dealing with big data is the speed in which it is generated. Nowadays consumers have come to expect their online experience to be incredibly quick, and this can be intense when it comes to things like responding to queries or bad reviews on social media.
Furthermore, the speed at which word travels on sites like Twitter also poses a rather novel challenge for the travel industry; there have been instances during travel delays at airports where people have found out relevant information via social media before the gate agents have even had these details passed onto them - not a good way to provide a positive brand impression.
The Internet of Things
With an ever-increasing number of devices now being connected to the internet, even more data is available to provide insights into customer behaviour and preferences. Whether it's a laptop, a GPS system, or a watch, all of these devices can provide those in the travel industry with the potential for new ways to research and engage with audiences.
The issue here is how to store and handle this massive amount of data. While it represents good opportunities to glean vital insights about your customers, ultimately it's not helpful until you're able to have the systems and technologies in place to spot trends and patterns.
How Travel Companies Can Use Big Data
While there may be some challenges involved in implementing big data into your strategy, there are big potential benefits if you choose to do so. These include:
Increased Efficiency - There are a number of ways that big data analytics can prove useful for making your business more efficient. From using sensors to measure the
performance of machines and employees, to looking at data to determine where time and money savings can be made; you can use the insights from big data to make more informed and accurate decisions.
Better Marketing - Effective marketing is essential to the travel sector, and insights gleaned from big data can enable you to tailor your content and approach in a much more engaging way to your target audience. You can look at online behaviour, previous purchases as well as general demographic data in order to determine the types of products someone might be interested in, as well as the best channels to reach them.
Improved Customer Experience - Big data allows you to remember customer preferences in order to provide a better buying experience for them in the future. For example, when someone books a stay at a hotel the staff can look at the type of room they booked previously, and if they had any specific requests. Using big data can also help you identify any potential issues that may arise based on previous customers' behaviour, and help you to be prepared to solve them.
While there are always going to be challenges involved in using such large volumes of data, doing so can provide your travel company with new opportunities and see a great improvement in your overall strategy.
With more and more data being generated every second, and more devices being connected to the internet, businesses that don't put the systems and tools in place to be able to process big data are likely to find themselves falling behind the competition.
