Top 5 ways to use advanced analytics in the travel industry
Technology has transformed the way we travel. Once considered an arduous, and dangerous undertaking fit only for the enterprising explorers, travel today is a pleasurable activity that is all about accessibility and convenience. Advancement in technology and the rise of digital travel apps have made travel both fun and easy for all. With a large number of daily transactions involving multiple customer segments, operators, and service providers, travel platforms generate a lot of data. Travel companies are leveraging artificial intelligence and machine learning to understand this data better to know the exact needs of the modern traveler. With AI-enabled real-time insights on customer behavior, travel companies are optimizing their apps to deliver a highly personalized and seamless user experience.
How travel companies can benefit from advanced analytics
Here are ways in which travel companies leverage advanced analytics to drive customer experience:
1. Personalized recommendations
Every customer is unique with a specific expectation in terms of travel experience. Meeting this expectation is critical to retain users on a travel platform. If a travel app fails to meet their specific needs, 88% of travelers will switch to a different app altogether. Advanced analytics empowers travel companies to gain a better understanding of customer needs and their journey in real-time. By leveraging machine learning algorithms, companies can track various behavioral metrics including past search results to know customer preferences. This in turn allows companies to optimize their app for user experience and drive automated personalized recommendations. By delivering customized recommendations and offers, travel companies can drive more conversions and improve brand loyalty.
2. Dynamic pricing and revenue management
With plenty of options to choose from, travelers are on the lookout for the best deals that they can get especially for flights. To stay ahead of the competition, online travel companies follow a dynamic and flexible pricing strategy based on rapidly changing demand and supply variables. Travel companies can leverage advanced AI/ML algorithms to power their dynamic pricing engine. By monitoring and analyzing various metrics in real-time such as weather, seasonal booking patterns, customer data, etc, the system automatically displays the most optimum price to drive conversions. With predictive analytics, companies can accurately forecast the demand and manage pricing on their travel platform to maximize revenue.
3. Sentiment analysis
Getting customer goodwill in the travel industry is not easy. Before deciding on a service or operator, travelers often look for authentic reviews and feedback from other travelers online. Negative reviews on social media channels and other platforms can severely damage a travel brand’s online reputation. Travel companies need to monitor the social signals, know what users are saying about their service, and intervene when required. Advanced analytics helps business owners in sentiment analysis. It helps in understanding the customer’s perception of their brand. With real-time visibility on customer sentiment, companies can quickly identify problem areas and resolve any issues that impact the brand’s image.
4. Fraud detection and prevention
As per an IBM report, the travel and transportation sector is the second-most targeted industry for online hackers. Fraudsters target online travel platforms for various criminal activities such as hijacking accounts, stealing customer information, and making unauthorized payments. Advanced analytics is helping travel companies in detecting and preventing cyber fraud. AI-enabled systems can accurately and quickly monitor billions of records in real-time. By analyzing transactional data at a granular level, companies can spot and investigate any unexpected patterns or anomalies to mitigate risks.
5. Route optimization
Companies can also leverage advanced analytics for recommending the most optimal travel or flight routes based on behavioral data and logistical data. In addition to saving cost and time, a tailor-made route optimization system also helps in driving customer satisfaction. A smart route optimization mechanism can provide customers with the most convenient and safest travel options based on their preferences. In the post COVID world, this would help travelers in selecting the most affordable and convenient routes. Artificial intelligence will also enable automation required for powering contactless travel in the near future.
With advanced analytics, travel companies can autonomously and accurately analyze massive amounts of transactional and behavioral data in real-time for managing recommendations, pricing, revenue, and user experience. Travel companies can thus leverage advanced analytics to address multiple business use cases to deliver an incredible travel experience to their customers.
Originally published at https://www.crunchmetrics.ai on November 6, 2020.