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Measure to Improve - BI for Travel Industry


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Effective Travel Business Intelligence Strategy can positively impact a company's bottom line.

Sanjay Mehta, CEO, MAIA Intelligence Pvt. Ltd. authored an article for Travel Gazette India magazine, January 2011

Published in: Technology, Business
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Measure to Improve - BI for Travel Industry

  1. 1. Measure to Improve Sanjay Mehta CEO, MAIA Intelligence on how effective travel business intelligence strategy can positively impact a company’s bottom line f you can measure it, you can What routes perform better than others and • Total Booked Spend improve it. Data provides the at what times of the day? • Average Ticket PriceI foundation for well-designed goals and objectives, measurement and against regular those objectives tells you just how much BI IN ACTION With BI, organizations in travel industry can track basic fleet information such as on-time • • • • Price per Mile Average Room Rate Average Rental Rate Top 25 Suppliersyou have achieved. arrivals and percentage of booked seats. The • Top 500 Markets managers are able to drill down to customerTHE CHALLENGE demographics. Who are average customers? Three Key Spend Analyses:It’s important to relate effectively with What kept them loyal to the company? Why • Incremental volume on supplierscustomers. Consolidation and alliances up are they traveling? How was our service – Preferred – better discounts, moreand down the supply chain are even more perceived in relation to others? discounted spendvital. More effective human resource and – Non-preferred – potential discounts,asset management is also important. The sales force in the travel industry is more leverage with preferred The world of travel management constantly on the road, working on corporate suppliersinherently relies of multiple sources of deals that establish their organization as the • Booking activity by alternative channelsinformation. Information is gathered from preferred travel partner for business – Is the supplier’s pricing differentialbookings, ticketing, usage, cancellations and travelers. BI helps sales team leaders and enough to warrant the preferredother stages of a consumers travel executives to see the big picture, while the channel’s total cost?experience. This multiplicity means key data drill-down enables them to identify what, or – Where do you need direct data pipes?may not be noticed, communicated or taken who, is causing a margin or revenue • Booked vs. Billed Rate Auditsinto consideration leading missed problem. To make real use of thisopportunities to increase profits, while information, the sales leaders need anytime, Analysis of data within a Travelcausing confusion, duplications, and anywhere access to their information. Such Management Company with BI:redundancies. information enables them to stay current, • Executive Summary minimize errors, and feel confident knowing • ComplianceTRAVEL IS COMPLICATED that everyone is working from the same • Booking Behavior• Highly personal impact on travelers information. • Vendor Analysis• Huge amounts of spend on Travel BI can help travel agents, operators,• Tidal waves of transaction data Examples of how to apply BI tools to a wholesalers and retailers gain• Dynamic and complicated pricing travel business include: comprehensive knowledge of the factors• Content and spend fragmentation • Understand and analyze industry affecting their business, such as employee• Sophisticated and stressful negotiations relevant factors such as sales, productivity, sale matrices, commissions,• Significant cost-reduction pressure commissions, markups and internal markups and internal operations. operations BI in the travel services industryBUSINESS INTELLIGENCE • Analyze turnover, expenses & profit in can be used in the capture of customerWithout the right information delivered at various dimensions such as destination, desired activities and constraints. They maythe right time, companies cannot effectively suppliers, agents, booking clerks and also be engaged by the business to link keynegotiate supplier contracts, monitor policy many more business segments like market intelligence,compliance or pinpoint opportunities for • Create sales and profit targets for customer relationship management, yieldadditional cost savings. BI extracts meaning branches, team members, agents and management, overbooking and employeeinformation from multiple sources – data suppliers and analyze these targets on a scheduling.that might not be explicitly apparent from daily basis. BI can help a decision maker tosimply generating reports. The emergence of • Identify best-selling contracts to assist forecast sales, negotiate contracts, manageBI corresponds to the increasing volumes of in renegotiation and allocation planning commissions, create and monitor sales andbusiness data now captured for analysis. • Identify and reward top agents profit targets and identify opportunities to • Forecast next years sales increase sales and reduce costs. TGITravel business constantly needs to trackfleet’s performance. Are vehicles on time? Dimensions upon which most travel reports are January 2011 – Travel Gazette India 41