Will it be possible for travel companies to create continuously increasing demand rather than constantly fighting for existing market share through pricing? For that to happen, the travel industry will havet o implement segmentation models that stop focusing on the the trip itself rather than specific characteristics around travelers.
In this month’s webinar titled “Business Intelligence and Big Data in Travel Distribution” by PhoCusWright, an interesting question was asked during the Q&A session: Will it be possible for travel companies to create continuously increasing demand rather than constantly fighting for existing market share through pricing? The answer for many industries is definitely yes, with players like Apple leading the innovation front, waving the big innovation flag and providing products that people want rather than need and buy at a premium price.
According to Bob Offutt, Senior Technology Analyst and Innovation Editor at PhoCusWright & ex Senior Vice President of Sabre Holdings: ““It’s going to take time to modernize the messaging feeds, to put them at a point where they can be analysed, (for this to happen) the current mind-set has to change and evolve from capturing transactional data to also capturing shopping intelligence & conversion insight and then, the technology to collect that data as Kuoni has done with their XML is absolutely critical.. XML will play a big role in this evolution”. Bob also hinted that NDC, IATA’s new XML-based standard for distribution in the airline industry will push adoption across all the travel industry.
On the topic of product innovation, Bob stated: “Big Data allows precise segmentation of customers- well beyond loyalty programs which vary substantially in the understanding of customers. The travel industry has been focusing on the trip itself rather than specific characteristics around the travellers and their friends - implementing segmentation models will require substantial re-engineering of systems.”
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