Data Strategy: How to Get the Most Out of Digital Information in the Post-Pandemic World
Like just about everything else in the post-pandemic world, the travel industry’s relationship to data science has been transformed to an almost unrecognizable degree. Historical data from the time before the pandemic is now largely irrelevant in this new landscape – and information from the time during it cannot be used because of the heavy restrictions placed on global travel.
This means travel pattern data is less useful and brands operating within the industry now need to rethink how they deploy digital information and leverage the most value from it. In this new world, it seems more effort must be spent on establishing first-party customer databases and maximizing real-time data in order to respond appropriately to shifting customer preferences and boost resilience to ongoing market volatility.
“Historic data is much less relevant because it is based on pre-pandemic travel patterns,” said CMO of Airline Partnerships for TUI, Peter Polschmidt. “Air tracking, third-party cookie data, and first-party data are all used to create a profile of customers. However, more effort must be placed on establishing your own customer database to benefit your brand. How do you acquire customers via third-party data? Get customers to submit their data to unlock promo codes on platforms like Facebook, which gives customers a reason to actively engage directly.”
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Forward Thinking Data Strategies
It is impossible to talk about the use of data in the modern business environment without discussing the announcement by Google to suspend third-party cookie support for its proprietary Chrome browser by 2023. This, of course, follows similar moves by both Apple and Mozilla to improve data transparency and control on their platforms.
The loss of third-party data from the world’s most popular web browser is going to be a transformative experience for brands in every industry and will compound the data-related challenges brought about by the COVID-19 crisis.
This development will require travel brands to renew their focus on first- and second-party data through strategies such as developing their own customer database and creating new buyer personas to figure out how best to target new and existing customers.
"To overcome this challenge, travel companies must focus on new strategies to create memorable digital experiences for consumers while complying with new data privacy regulations. By aligning digital marketing and advertising efforts with data privacy now, travel companies can prepare for a more organic and transparent relationship with consumers and build key, long-lasting connections moving forward." - Luka Cempre Senior Data Scientist at Adswerve
Data-Driven Management Systems
Personalization is still a massive deal across all industries but should be particularly noted by such an aspirational and luxury-focused industry as travel. Vacations are all about wants rather than needs and it’s in this area where personalization arguably matters most.
Research by Smart Insights discovered that 63% of customers will stop buying from brands which fail to offer personalization or use poor personalization tactics.
We’re going to see AI and machine learning play an increasingly crucial role in personalization moving forwards – especially once the proposed changes to cookie support come in. One of the most frustrating elements of arranging a vacation – the booking process – can be significantly streamlined by AI which rapidly finds the best deals and packages and allows customers to compare products and prices in the blink of an eye.
However, it’s not enough to simply apply personalization with currently existing technology. Travel brands need to be forward-looking and consider what factors will be driving personalization in years to come.
The consulting experts at McKinsey predict that brands will soon be using digital ecosystems to continue the personalization experience at every stage of the travel journey. This means personalization will not end at the purchase stage but will form an embedded part of the entire vacation – flying and hotel check-in to partner ecosystems – which will enable personalization to include periphery experiences such as the traveler’s choice of restaurant, bars and clubs they visit, and even the shops they purchase souvenirs from.