Inisghts

It’s not news that data and technology are competitive differentiators in travel. One such area where AI and machine learning are causing significant disruption is in shaping pricing and discounting strategies. By optimizing these processes, travel companies can improve their profitability, reduce opportunity loss, and potentially offer more personalized pricing to customers (legal constraints notwithstanding). Dynamic pricing and discounting can help travel companies optimize their revenue by adjusting prices based on demand, seasonality, and other factors. Dynamic pricing is a strategy where organizations can adjust prices in real time based on demand and other factors. Revenue management involves setting of prices based on various factors to maximize revenue at its core. This approach has been used in industries such as airlines and hotels for years, but with the advent of machine learning, it is now possible to achieve near real-time dynamic pricing. Machine Learning (ML) algorithms can analyze vast amounts of data to determine the optimal price for a particular product or service. This data can include historical sales-related information, competitor pricing, customer behavior, and external factors such as weather, holidays, and events happening in the vicinity. Travel companies need to make business decisions on which products they want to dynamically price and at what frequency they want the price to change – this will help determine the right technology solution and derive more value. Machine learning algorithms can also help travel companies automate their discounting strategies to determine the optimal discount rate and maximize revenue. By automating pricing and discounting strategies using AI and machine learning, travel companies can: Improve profitability: Optimize revenue by charging the right price at the right time. Reduce opportunity loss: Reduce the opportunity loss that results from having unsold inventory. Personalize pricing: Offer tailored pricing to customers by bundling the right products, improving customer satisfaction and loyalty. Hone competitiveness: Offer pricing that is more responsive to market demand to stand out from competitors. However, there are some potential risks associated with AI-based pricing and discounting. For example, if machine learning algorithms calibrated inaccurately may lead to pricing that is discriminatory or unfair. To mitigate these risks, travel companies must ensure their algorithms are transparent, auditable, and fair. In conclusion, using AI and ML to automate pricing and discounting is fast becoming an essential part of the travel industry. By using these technologies, travel companies can improve their profitability, reduce opportunity losses, and offer more personalized pricing to customers while ensuring that pricing is fair and transparent. Tech4TH brings deep-rooted expertise and innovation into play in delivering the right pricing and discounting solutions to travel companies and enabling intelligent engagement with travelers. Write to us at reimagine@tech4th.com to know more.

What customers perceive about your brand can make or break an organization in the modern travel and hospitality (T&H) landscape. The depth of connections and loyalty that T&H brands can build with their customer base is significantly influenced by their reputation to deliver positive customer experiences, which can tip the scale between expanding customer base and diminishing it.  Feedback to fast forward growth Traveler and guest feedback is a key consideration in building brand reputation in the industry. T&H enterprises therefore need to be quick on their feet when it comes to responding to customer requests, resolving issues promptly and fairly, and going above and beyond to deliver a positive experience. Outside perspective can help – checking third party ratings sites like TripAdvisor, Yelp, and Google reviews gives a fair idea on how the brand is being perceived by customers. Negative comments and responses can also work for the brand, as it presents an opportunity to quickly identify areas of improvement and show initiative in delivering better service. It lets brands interact directly with customers to quickly set things right in case of an issue, or to provide additional context and clarification – making customers feel heard and valued. Actively encouraging satisfied customers to leave feedback also helps balance out any negative feedback and showcase improvement. Building reputation with data analytics and AI Data analytics and AI can play a crucial role in reputation management by providing T&H companies valuable insights into how their brand is perceived by the public. Here are some ways to do it. Sentiment Analysis: Analyzing vast amounts of customer feedback and social media data to determine the overall sentiment towards a hotel or an airline as an example. This helps T&H enterprises understand how customers feel about their products, and services.  Social Media Monitoring: Monitoring social media platforms for mentions of a travel brand and analyze the sentiment of these mentions. This helps to respond to negative comments, track mentions of their brand, and engage with their audience.  Reputation Risk Assessment: Assessing the risk of reputation damage based on factors such as industry trends, brand sentiment, and the impact of events like travel disruption. This helps to anticipate potential reputation risks and take proactive steps to mitigate them.  Predictive Analytics: Making predictions about the impact of future events on a travel company’s s reputation. For example, predicting the potential impact of a major event such as a merger or acquisition between two airlines.  Anomaly detection and content analysis: Identifying and monitoring unusual or unexpected activity related to a travel company’s reputation online, such as negative reviews, social media posts, or online comments. The process involves collecting data from various online sources, analyzing the data to identify patterns and deviations, and using machine learning algorithms to detect anomalies in real-time. This information can then be used to respond to potential threats, mitigate damage to the reputation, and improve overall online presence.   Reaping the rewards  Good reputation management can have several positive consequences for a T&H enterprise:   Increased customer loyalty:

Most consumers and organizations view sustainability as an environmental goal of going green, reducing emissions, or minimizing one’s overall impact on the environment. While they are not entirely wrong, sustainability is much more encompassing than just the carbon footprint and considers aspects of social and organizational accountability as well. The stakeholders for sustainability are not just limited to the local governments and regulatory bodies, but also includes the customers, employees, and the societies and communities within which these businesses operate. 83 percent of C-suite leaders and investment professionals say they expect that ESG programs will contribute more shareholder value in 2025 than today and would be willing to pay a ten per cent premium to acquire a company with a positive ESG record. – McKinsey, The ESG premium: New perspectives on value and performance Data is the key to changing the narrative for not just profits, but also the people and the planet. Data driven insights can not just help travel managers negotiate better with air, hotel and other travel providers, but also cut down energy consumption, manage waste better, enabling travelers to make greener choices, bring more transparency to policy making and more. Environmental, Social and Governance (ESG) concerns are a C-suite priority now, that aims at creating a holistic sustainable environment within the organization. Environmental – Go beyond CO2 emissions This is usually the most focused upon aspect of ESG as “Global Climate Change” being a credible threat to the planet gets most attention from governments and media outlets globally. The environmental impact of human enterprise on our surroundings is clear and present and can be objectively measured using the “Carbon Footprint” metric.   Some of the key dimensions in this area are “Sustainable Consumption” which could be energy, water, and other resources. The emissions caused by these consumptions, both direct and indirect provide an objective metric of your sustainability alignment towards your environmental goals. Usage analytics combined with the data from smart devices that create an IoT environment can help streamline process in travel and stays to save water, reduce energy consumption and optimize the utilization of other resources.  Another dimension is around “Sustainable Waste Management” which dictates your ability to manage, minimize, and eliminate the generation of solid, liquid, and recyclable waste. The third dimension within this area is around “Sustainable Sourcing” which dictates the sustainability alignment towards your supply chain. Organizations supply chain can be a significant contributor towards environmental emissions and therefore be detrimental towards your overall carbon footprint. Using procurement data to pick products with lowest carbon emission can get organizations one step closer to being carbon neutral. Social – Cater to customers, colleagues and community (3CX)  This aspect of ESG is mostly focused on the leadership structure and employee dynamics within the organization. The ability of an organization to drive equitable and inclusive growth for its employees and leadership indicates a level of maturity that contributes to the workforce development dimensions within this key ESG area. Additionally, employee, leadership, and board diversity, equity,

Imagine you plan a trip and after a long and exhausting journey, reach the stay to be greeted with a virtual guide who helps you to your room that sets the ambiance just how you like it with a single voice command, exceeding your expectations. Feels like a tall order? Well, Smart Hotel Rooms, can bring this wish to life. What are Smart Hotels? Smart hotels leverage the power of IoT along with data analytics and edge computing to deliver guest experiences that are superlative in nature with intelligent bots, virtual guides, instant services-based devices, etc. IoT (Internet of Things) and other enabling technologies help create an ecosystem of connected devices that gather data and take actions based on insights generated by processing that data. For example, smart controls for the room, smart elevator, motion detection within common areas for lighting manipulation etc. Why Smart Hotels? Hotel owners are looking for options to re-imagine tourism and hospitality post the pandemic, to make the most of the huge influx of guests. One of the ways to achieve is by adding a digital zing to their experience like touchless room entry, instant verification and payment, automatic services, etc. Advantages for owners While creating a hassle-free customer experience is the endgame, Smart hotel rooms also deliver an impressive fleet of services with energy-saving options like automatic lights, temperature management, light intensity control etc. that saves expenses, and the environment in the long run, by being energy efficient and more eco-friendly. You know your hotel has the best customer experience when guests become regulars. With AI powered insights drawn from a combination of IoT data and data from customer preferences, custom hyper personalized options can be made available to guests to create a seamless experience that they would want to revisit. Intelligent devices working in an IoT ecosystem can provide an immediate response based on triggers. They can be of help in identifying emergencies like gas leaks, fires, theft, etc., using smart sensors which can be used by the hotel units to quickly take action. For hotel owners specifically, it helps avoid damages, downtime and extra costs that are incurred because of such incidents. Voice-enabled functions, instant service requests and more provide a great way to interact with guests, reducing the turnaround time and enabling service even during the times when staff might be unavailable. By streamlining and automating processes they become more efficient and productive, resulting in increased net revenue, and helping you achieve the targeted ROI. Smart hotels streamline and automate processes to avoid manual error and effort leakage. For example, if guests want to make a meal order, they can simply place an order through voice-enabled devices. The order straight goes to the restaurant without the need for an individual to monitor it. The same goes for reducing energy consumption with smart lighting, temperature control and more. Advantages for guests Who does not love personalized hospitality? Consider you visiting a hotel and they know what you would like to have as

As is the case in every aspect of life, the pandemic has manifested a new normal for the travel and tourism industry, as well.

The hospitality sector is witnessing significant innovations and disruptions…