4 examples on how cloud technology has shaped the travel industry

Investing in cloud technology has gained popularity in the travel industry in recent years. But there have still been several concerns slowing down the pace of cloud adoption. Reasons have mainly been safety and data security concerns and the fear of lacking accessibility and experiences (LogicMonitor, 2018). But with the increasing customer demands and the dynamic technology landscape within the travel industry more and more travel businesses discover the advantages of cloud computing for themselves.

According to IDG´ s Cloud Computing survey 2018 the average cloud budget for enterprises and SMB´ s has risen up from $1.6M in 2016 to $2.2M in 2018, showcasing that the average IT landscape is increasingly cloud based. Taking a closer look at this number, a lot of the increase is due to the doubled cloud spend of SMB´ s accounting for $889K, while the budget of enterprises has just risen 15% to $3.5M. The 4 examples below will give you a better understanding of how the use of configurable computing resources and IT infrastructure is effectively shaping the travel industry:

1. Speeding up the IT service delivery 

One of the biggest objectives that drive general cloud investments is the need for speed and agility (IDG, 2018). Especially in the travel industry customers change their habits rapidly, demanding instant service, while the competition does not sleep. The opportunities for travelers to find information about their next travel destination or the cheapest flight are vast and free of costs, so speed and responsiveness is the key to success. By having a cloud solution that is continuously updated and that keeps your infrastructure up-to-date, you have the possibility to quickly adapt and not be bound and stuck with old technology. Not only planes fly higher, longer and faster but also travel agencies have to be quicker and more flexible. Having a reliable and scalable cloud technology in place almost got to be an integral part of the travel business.

2. Personalized service for travelers 

The increasing computing power and capacity of the cloud make data storage easier than ever. Data about user preferences can now be increasingly used to provide customized travel packages and customer service all based on the behavior and preferences of the traveler. Platforms such as Instagram, Pinterest, Twitter and Facebook are all social media applications using cloud computing, storing an immense amount of valuable data. The way people travel and share it on their social media profiles has changed the industry significantly. Cloud computing greatly facilitates data synchronization between channels to enable cross-sectional data analysis, cross-sectional regression analysis and cluster analysis. While “instagrammable” places determine the next travel route for millennials, travel agencies already know that they need to get a hold of social media data to improve destination marketing.

3. Productivity and cost reduction in the day-to-day travel business

The access to fast working and flexible technologies improves the effectiveness of processes and the productivity of travel agents. Being able to access the documents and programs you need for your daily operations from anywhere is a key factor in improving your mobility. But it does not only improve your productivity, it also reduces start-up and ongoing costs. Instant synchronization of all the data turns the booking procedure with any customer into triviality. Additionally, manual maintenance is decreased which saves valuable time you can spend to increase customer satisfaction.

4. Application development has never been easier

Cloud platforms are a reliable environment to develop a web or mobile application.  Thanks to pre-coded modules and tools, the process of developing an app can be accelerated. This development has also contributed to the occurrence of many innovative applications within the travel and hospitality industry.  These apps range from facilitating the traveler´s planning to streamlining booking services for hotels and restaurants.

Cloud technology has become a crucial part of embarking on the digital transformation within the travel industry. As it evolves, it keeps improving and becomes always better, faster and easier to manage. Cloud computing pushes the limits of success and business optimization provides the most flexible and reliable support for the development and expansion of travel businesses and allows agencies of all sizes to thrive in the ever-changing and hyper-competitive travel market.

How can we help you to do this?

TravelOperations accompanies you on this digitalization journey by offering cloud-based solutions to manage your travel business and get the most out of cloud technology. From the pre-planning phase to software implementation and beyond in form of post-implementation customer service – TravelOperations is by your side from day one to listen to your needs. While our software will integrate all of your operations, we will help you to maximize your ROI and reach your goals. Because our goal is to reach your goal.

Ready to take the step to the cloud? Click here to get in touch!

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