The most valuable asset in today's business environment is the ability to mine, understand, and make revenue and customer projections based on data about a company's customers and potential customers.
FREMONT, CA: In today's business environment, an organization's most valuable asset has become data about its customers and potential customers, as well as the ability to mine, understand and forecast revenue and customer growth based on that data. Along with the data that a travel or hospitality organization collects directly from customers, they can add data from third-party sources such as social media, online review sites, search engines, retail platforms, and smartphones. Through big data analytics, leading organizations in the travel and hospitality industry can differentiate themselves, manage and forecast revenue, and adapt to changing customer needs faster than competitors. Exploiting the data goldmine is especially beneficial when it comes to travel revenue management.
Revenue Management in Travel Using Big Data
Particularly in today's volatile and fast-paced travel and hospitality industry, it is critical to maximizing revenue by offering the right product, whether it is an airline ticket or a hotel room, to the right customer at the right time. Today’s online travel and hospitality bookings world has created an environment characterized by highly volatile and dynamic pricing.
The majority of travelers, those visiting restaurants, museums, or other hospitality-related businesses, make their plans at the last minute, making it extremely difficult to make decisions based on historical data. As a result, revenue managers make revenue decisions using big data, complex algorithms, and artificial intelligence. Actual booking or purchasing data has taken a back seat to more real-time data such as internet search patterns in driving decisions.
Environmental Changes and Big Data Factors Influencing Revenue Management Approaches
Using data from search engines, online travel agencies (OTAs), one's own website's reservation system, and various other sources, users can determine which destinations travelers are looking for, which hotels they are considering, and which recreational options they are considering. Knowing their dates and length of stay enables optimization of travel revenue management via big data, along with knowing what they're looking for. By utilizing big data derived primarily from real-time top-of-the-sales funnel sources, revenue managers can ascertain the most frequently searched terms and then develop a revenue strategy based on price and customer experience.
Many in the travel and hospitality industry have been forced to make staff reductions as a result of the Covid-19 pandemic, resulting in decisions being made with fewer employees and resources and shifting priorities. The positive side of this dynamic is that it forces revenue, operations, marketing, and sales teams to work much more closely together. Along with maximizing travel revenue through big data, this has resulted in developing a model centered on revenue maximization through lean, tightly integrated teams. It enables revenue managers to maximize revenue in a highly competitive environment by leveraging all available levers, including data, operations, sales, and marketing.