Big data has the potential to transform how travel companies deliver services to travellers, according to the latest study by Amadeus.
Big data is arguably the biggest opportunity in a generation for travel businesses to embrace the changing structure of data and maximize its use. It offers the potential for a vast shift for all travel companies, empowering them to enhance both the business and experience of travel. As with any generational shift in technology, however, the opportunities arrive hand-in-hand with the potential for significant disruption, which naturally bring many challenges – competitive and creative – for the travel industry to consider.
“At the Big Data Crossroads: turning towards a smarter travel experience”, an independent study just published by Amadeus, explores the impact of large volume, unstructured data known as big data on the global travel industry.
The study finds that travel companies are at a crucial big data crossroads: big data has a vital role to play in delivering a more efficient and tailored travel experience with benefits to both travel companies and travelers alike. However, its potential is still confined to early adopters in the travel sector, and it calls for more widespread consideration across the industry about how new approaches to big data can yield significant opportunities.
Here is an overview of the major points:
Big data offers significant benefits for all travel companies
The benefits of big data for travel providers and travelers are explored, including:
• Better decision support
• New products and services
• Better customer relationships
• Cheaper, faster data processing
Big data in the travel industry is currently being driven by early adopters
The diverse ways in which big data is being used by early adopters in the travel industry are investigated, with a focus on:
• Optimizing revenue management
• Customizing travel distribution
• Transforming corporate travel
• Enhancing internal operations
• Boosting financial performance
Challenges need to be overcome so the industry can realize the potential of big data
The study acknowledges the technical and operational challenges associated with big data adoption in the industry, namely:
• Creating an integrated data source
• Working in a hybrid technological environment
• Overcoming the data skills shortage (an issue in all industries adopting big data)
• Maintaining competitive advantage
Finally, here is a series of recommendations for travel companies preparing to embrace big data:
- Research big data
- Strategize about big data
- Don’t just explore big data technology – look at the changes you will need to make to business and operational processes too
- Start assembling big data skills
- Work with partners
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View this and all the latest Tourism & Travel Trends and Developments in Trendspotting 2013.