How does Business Intelligence affect Travel Industry?
By Qing Liu
Nowadays, business intelligence is worldwide used in most industries. Like most industries, the travel industry will benefit from the implementation of big data analytics solutions. Whether in rail, airline, cruise or bus lines, big data plays an important role in profitability and customer satisfaction. Business intelligence and analytics play a key role in addressing many of the issues that impact revenue and operational inefficiencies. Technology drives globalization, and the advancement of technology is both an opportunity and a challenge for the development of tourism. (Ahmad, 2019)
What
is Business Intelligence (BI)?
Business Intelligence (BI) is the strategies and techniques
that enterprises use for data analysis and management of business information.
Used to analyse data and provide actionable information to help executives,
managers and employees make informed business decisions. The goal of business intelligence
(BI) is to make interpretation of this big data easy. Identifying new
opportunities based on insights and implementing effective strategies can
provide businesses with a competitive market advantage and long-term stability.
The goal of a BI program is to drive better business decisions, enabling
organizations to increase revenue, improve operational efficiency, and gain a
competitive advantage over business competitors. (Stedman, 2022)
The online travel
agency market
Recently, it has become more common for consumers to book their own travel. These online companies offer the comfort of booking at home and often lure consumers with package deals and great price options. As a result, many travellers have turned away from traditional brick-and-mortar travel agencies and opted to book travel online. As of 2020, 65% of the global travel market’s revenue comes from online sales channels. The global online travel market size will be valued at USD 800.72 billion in 2021. (Online travel market, 2021)
Online booking
According to STRATOS, 82% of global travel bookings in 2018 were made without human interaction. Using the web to discover new destinations, plan or review trips is now an important part of the online travel market. And the global online travel market size is expected to reach $1,463.98 billion by 2027, up from $800.72 billion in 2021. (WIRE, 2022)
Here are the most generic and critical categories of travel organizations:
- Spend and Savings: Contract spend, booking visibility, payment visibility, negotiated savings realized, contract competitiveness, managed travel costs.
- Suppliers: Passenger satisfaction, contract support
- Process: Rebooking Rate, Reimbursement Days
- Travellers Safety: Location Insights, Profile Contests
The benefits of using BI in the travel industry:
- Strengthen customer segmentation
- increase income
- Targeted offers and promotions
- Benchmarked against industry standards
- Reduce operating costs
- Competitor Insights
- Improve inventory utilization
- Improve customer service
Let's see where analytics can improve business
in general:
- Descriptive: Historical data helps businesses see trends and correlations. For example, a business can discover why and how sales have declined over a period of time and act accordingly to correct the direction.
- Predictive: Discovering correlations and trends between datasets will help build forecasts and future trends. Corporate downturns could have been foreseen and avoided earlier!
- Decisive: Building on two precedents, especially predictive. Knowing what/why happened will lead to suggested actions. (Bresin, 2017)
Here's how business intelligence can elevate the travel industry to higher levels of profitability and efficiency.
- BI can help travel agencies stand out
By empathy, it can be envisioned that most people probably
don't care which shipping company or travel agency they use to book their
vacation. However, the effective use of business intelligence software in
travel agencies and industries can help change the way customers think about
travel. Consent also improves the customer's consumption experience. Interaction
is very important both in the booking process and in the consumption journey.
Therefore, as a service provider, whether it is a hotel or an airline, it is
necessary to provide a seamless customer experience, so that everyone has money
to make, and customers may become repeat customers. Because loyalty is one of
the main ways travel companies retain customers and maintain profits.
The main goal is to increase the loyalty of existing customers and inspire the loyalty of new travellers. BI for travel agencies can provide agents with complete, accurate customer profiles, streamlining marketing campaigns and allowing managers to strategically implement loyalty programs. Incentives introduced by agencies in the industry have increased customer loyalty and made them want to choose these agencies again.
- With BI, pricing calculations become more accurate
Because travel is expensive, it's understandable that
probably everyone who goes on vacation wants the best deal. Therefore, travel
agencies offer many attractive deals and prices during peak season.
Travel agencies must have real-time information on market conditions at any given time. Business intelligence provides accurate information on flight trends, comprehensive price changes and operational capabilities of various travel destinations at any time of the year. Armed with this information, travel agents can optimize their prices to improve foot traffic while maintaining rising profit margins.
- BI allows for better asset management
To maintain travel agency assets, high performance and safety are very important. One of the benefits of business intelligence is that it allows businesses to capture detailed information about operational and analytical data for all processes within an industry. Asset management is infinitely easier when information is presented clearly and effectively. The more secure assets are, the less likely they will need maintenance and replacement, which can cost a lot of money. (Ahmad, 2019)
What if companies can't create the future? Enterprises should use business intelligence as a springboard to ensure that they use the best technology to capture every point of customers in their consumption process so that enterprises can truly create the future. The merchants who seize the first opportunity will be the final winners.
In the end, business analytics will help companies gain a competitive advantage, predict future market behaviour, and detect operational inefficiencies. As such, it will enable businesses to proactively steer the route ahead of an event, rather than passively following market trends.
Author: Qing Liu
Keywords: #BusinessIntelligence #TravelIndustry #BI #TravelAgency #TravelOrganizations #Business # Globalization #DevelopmentOfTourism #Tourism #TourismAnalytics #Analytics #GlobalTravel #OnlineMarketing #OnlineTravelmarket
Reference:
- Stedman, C., 2022. What is Business Intelligence? BI Defined. [online] SearchBusinessAnalytics. Available at: <https://searchbusinessanalytics.techtarget.com/definition/business-intelligence-BI> [Accessed 8 January 2022].
- Ahmad, F., 2019. Top 4 Ways Business Intelligence Impacts The Travel Industry. [online] Linkedin.com. Available at: <https://www.linkedin.com/pulse/top-4-ways-business-intelligence-impacts-travel-industry-fazeel-ahmad/> [Accessed 28 January 2022].
- Statista. 2021. Topic: Online travel market. [online] Available at: <https://www.statista.com/topics/2704/online-travel-market/#dossierKeyfigures> [Accessed 4 February 2022].
- WIRE, B., 2022. Global Online Travel Market, Size, Forecast Report 2022: A $1,463.98 Billion Market by 2027 - Industry Trends, Share, Growth, Impact of COVID-19, Opportunities, Company Analysis - ResearchAndMarkets.com. [online] Businesswire.com. Available at: <https://www.businesswire.com/news/home/20220209005769/en/Global-Online-Travel-Market-Size-Forecast-Report-2022-A-1463.98-Billion-Market-by-2027---Industry-Trends-Share-Growth-Impact-of-COVID-19-Opportunities-Company-Analysis---ResearchAndMarkets.com> [Accessed 15 February 2022].
- Ahmad, F., 2019. Top 4 Ways Business Intelligence Impacts The Travel Industry. [online] Linkedin.com. Available at: <https://www.linkedin.com/pulse/top-4-ways-business-intelligence-impacts-travel-industry-fazeel-ahmad/> [Accessed 18 February 2022].
- Bresin, M., 2017. Business Intelligence for the Travel Industry. [online] Linkedin.com. Available at: <https://www.linkedin.com/pulse/business-intelligence-travel-industry-marcello-bresin/> [Accessed 20 February 2022].
Nice post. I am happy to have learned this information. Special thanks for team Higuys.
ReplyDeleteThanks so much
DeleteGreat content... Your efforts are much appreciated. Using Business Intelligence in the Travel and Tourism sector is an innovative way for firms to better their activities in the future. You mentioned clear idea about tourism industry that utilizes business intelligence have enhanced their results in recent years. Business intelligence facilitates non-human travel bookings and gives reliable information on flight trends, detailed price changes, and operational capabilities of different travel destinations at all times of the year. I appreciate your efforts in describing all of the information in a more understandable yet professional manner, especially when it comes to a travel industry. I hope you will continue to provide informative content like this.
ReplyDeleteHello QingLiu,
ReplyDeleteFirst of all, thanks for sharing this informative post.
I agree that business intelligence has a huge impact on the tourism industry.
Business intelligence, or BI, is the process of extracting useful information from data in order to make strategic decisions and take action. Business intelligence includes steps such as reporting, analysis, monitoring, and forecasting. With the introduction of this concept into business life, tourism and travel businesses have come a long way in understanding their customers, offering insightful suggestions, and identifying customer needs and desires according to reports. According to all these, it is possible to be more successful with different tactics.
Looking forward to your new blogs.
Hey Qing Liu,
ReplyDeleteBusiness intelligence, I think, has a significant impact on the tourism industry.
The process of obtaining usable information from data in order to make strategic decisions and take action is known as business intelligence, or BI. Reporting, analysis, monitoring, and forecasting are all processes in the business intelligence process. According to surveys, tourism and travel organizations have come a long way in knowing their clients, making intelligent advice, and detecting customer requirements and desires since this notion was introduced into corporate life. According to all of this, different approaches can help you be more effective.
I'm excited to read your new blogs.