While data analytics has been revolutionizing operations in a number of industries – healthcare, manufacturing, technology, retail, and more - travel companies have been slow to adopt. In fact, a recent study¹ shows that only 68% of travel companies intend to implement data analytics and business intelligence – while the remaining 32% have no intention to do so.
There are challenges to implementing a data analytics program. Structuring data management, setting objectives, and achieving measurable results are all complex endeavors; and successful implementation can be difficult and expensive to achieve with the current shortage of experienced data scientists.
However, the rewards may be worth the risk. A report from Forrester² shows that businesses that routinely use data analytics for business intelligence are growing at an average rate of 30% per year and that by 2021, they could take more than $1.8 trillion in revenues from businesses that do not.
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Financial management is becoming an agile function, requiring immediate decision-making in the face of a rapidly changing business environment. Real-time data, analyzed and translated to provide actionable insight, provides the information required to maximize profits and control costs at the moment.
A study from McKinsey³ found that data analytics can reduce marketing spend by 15-20%, by improving the effectiveness of the money that is spent. Marketers for travel companies use data analytics for better targeting, segmentation, media planning, and identifying new audiences.
Advanced travel analytics make omni-channel data management possible, allowing data to be drawn from customers' interaction regardless of when and how that interaction occurs. This allows the travel companies to create a seamless, satisfying experience for the customer at every stage of their journey.
Travel analytics can also be applied to make personalized product and service recommendations to customers based on past purchases and predictions for future needs.
Data analytics can be applied to improve the amount spent per customer, increasing sales among existing customers. It can also be used to identify potential new audiences, new products, and new markets, to drive organizational growth. In addition, cloud data management technology make simplifies scalability, keeping your data organized and easy to access as data continues to grow over time.
Travel analytics can be used to improve processes throughout an organization, streamlining operations and providing the basis for data-driven decision making. This can be applied to such diverse areas as supply chain, equipment management, logistics, variable pricing, contract and partnership evaluations, and more.
Travel analytics represents an enormous opportunity for companies in the travel industry. Travel companies have been slow to implement data analytics, but early adopters may have a significant competitive advantage over those that delay. Using advanced analytics to control costs, increase sales, optimize financial management, streamline operations and improve the customer experience will help early adopters stand out in a crowded marketplace.
Contact DataBrains today to learn more about how our accelerated implementation and advanced Tableau data visualization tools can help you apply analytics to reach your strategic goals.
Sources:
[1] https://www.statista.com/statistics/1050953/business-intelligence-predictive-analytics-travel-brands-investing/
[2] https://www.forrester.com/report/InsightsDriven+Businesses+Set+The+Pace+For+Global+Growth/-/E-RES130848#figure3
[3] https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/using-marketing-analytics-to-drive-superior-growth