In this blog, I intend to discuss travel industry, its challenges and new way to deal with challenges by adopting technology trends. Early adopters of technology trends will
certainly have an edge over their competitors. In this blog, let us review the challenges and new ways to deal with the challenges.
Every week, I will take up one trend to review how this can enable travel industry to
maintain competitive advantage.
Challenges in the Travel Industry
The travel industry is currently facing major challenges, including cut throat competition, pressure to acquire new customers, retaining customers, on demand side and managing partners and alliances on supply side.
In addition there is a continuous pressure on containing cost. This is further complicated by:
- Expectation of superior service and positive travel experience at all touch points,
from online experience, agent interface and customer service. - Reduced margin – increased operational efficiency of selling plane tickets has
prompted airlines to progressively lower the commissions, putting pressure
for cost reductions. - Impact of Web 2.0/ social network on brand image and influence on travel
decisions - Making sense of massive transaction operational data, supplier and third party data as well massive unstructured data from social network
- Adoption of newer technology innovation such as:
- Creative rich
content website, - Behavioral
marketing, - Targeted advertisement,
- Leveraging customer profile to facilitate targeted marketing campaigns
Travel Industry Seeking New Ways to Deal with the Challenges
Challenges and competitive pressures are forcing Travel and Hospitality industry to adopt new innovative ways to face challenges and maintain competitive advantage. Some of these new technology trends, we will review in this blog are:
- Mobile Technology for Travel Industry
- Use social network on brand image to retain customers influence travel
decisions, and create new customers - Differentiate themselves to customers by personalization, behavioral marketing and offer optimization by providing relevant information
- Reducing launch window (Conceptualization to deployment) for launching new products and services using cloud services
- Improve revenue management by optimization of pricing model
- Improve operational efficiency based on business insight through near real time operational data
- Cloud Computing for Travel Industry
