Monday, September 22, 2014

How Big Data is Enhancing the Travel Experience


How Big Data is Enhancing the Travel Experience 
Elina Boncheva 

Hydra, Greece, Elina Boncheva

With each travel search we make whether on an online travel agency phone application or a metasearch engine website, data about our preferences, destination desires and willingness to spend on travel purchases is recorded. Sure, big data knows our travel trends and secret getaway plans, which may make the 21st century travel consumer weary, but the benefits big data can bring by means of personalized marketing outweigh the paranoia.  Hospitality and travel companies are beginning to use detailed consumer digital data to tailor each traveler’s experience from search to booking, bolstering retention rates and growing purchases through personalized marketing. 

According to a new Skift and Boxever report examining the future of personalized marketing in travel, personalized marketing can help improve conversion rates by 10-20%, increase revenue by at least 5% per week and drive loyalty with a potential to increase revenue per visit three to seven times.  Digital behavioral data can deliver specific ads to a customer in prime times of booking potential and can adjust the language and content of marketing campaigns for distinct audiences.  Companies can begin to build customer profiles of traveler data points including regions most often traveled to, preferred flight times, seat selection, average night stay, quantity of people booked for, etc. to offer more relevant “recommended trips” for shoppers. Think Amazon's related products section meets tailored travel packages. 

Big data in travel is also transforming the industry real-time. Delta’s flight attendants now stroll through the aisles carrying phablets preloaded with customer details from preferred language to loyalty status. Hotel chains are reworking their rewards programs to customize each guest’s experience based on data they have tracked. Expect your favorite dessert or revered sports team gear awaiting you next time that green light grants you entry into the room.  

With 35% of US travelers using 6-10 sites to plan and book travel, competition for the travel purchase is high. Creating the personal connection with customers is now paramount to bridging the gap between casual browsing and loyal purchasing.  

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