The Challenges and Benefits of Data Consolidation and the Crucial Role it Plays in Business Travel
In the dynamic landscape of business travel, the need for effective data management has never been more emphasized. Companies are constantly navigating through a sea of travel data and information, and the process of data consolidation is becoming a pivotal strategy to streamline operations, enhance decision-making, drive overall efficiency, and reduce travel costs. Data consolidation, especially within the business travel sector, is particularly intricate and complicated, however, despite the challenges it poses, it brings invaluable benefits to travel businesses.
Challenges of Travel Data Consolidation
Diverse Travel Data Sources
First and foremost, the business travel sector deals with a multitude of data sources, ranging from various back office systems, GDSs, expense platforms, and payment systems. These sources often use different formats and structures, making it challenging to integrate and consolidate the information seamlessly. Data can be structured, semi-structured, or unstructured. Handling this diverse data landscape requires flexibility in data processing, normalizing and consolidation methods.
Addressing the diversity of these data sources involves implementing solutions that can harmonize and standardize the data. This may include the use of data integration platforms, middleware, or application programming interfaces (APIs) that facilitate communication between different systems. Standardizing data formats and establishing clear data governance policies can also contribute to a more seamless consolidation process in the face of diverse data sources.
Volume and Velocity of Travel Data
Next, the sheer volume and speed at which data is generated in the business travel industry can be overwhelming. Managing and consolidating large datasets in real-time or near-real-time requires advanced technologies and infrastructure.
The business travel industry generates vast amounts of data on a daily basis and more often than not, operations often demand real-time or near-real-time data processing. For instance, companies may need to track the current status of flights, monitor expenses as they occur, or provide important updates to travelers. The velocity of data creation and the need for timely insights pose challenges in terms of processing speed and responsiveness. Businesses may also benefit from investing in analytics tools that can provide insights from large datasets in a timely manner.
Data Security
One last challenge with travel data consolidation is with data security concerns. Business travel data often includes sensitive information such as employee details, corporate financial data, and confidential itineraries. This information, if compromised, can have serious consequences for both individuals and the organization.
The business travel industry, like many others, is also subject to data privacy regulations such as the General Data Protection Regulation (GDPR) or other regional and international laws. Industry-specific standards and regulations also dictate how data should be handled. And if third-party vendors are involved in data consolidation processes, businesses must ensure that these vendors also comply with relevant regulations. This is why conducting assessments and due diligence on vendors to validate their compliance practices is extremely important.
Businesses in the travel industry need to create a robust framework for data consolidation that prioritizes the protection of sensitive information as well as ensures that the business operates within the legal framework and meets industry expectations.
Why Companies Should Care About Data Consolidation
Data consolidation can play a pivotal role in a business by serving as a strategic approach to streamline operations, enhance decision-making, and drive overall efficiency. Especially where there are many sources of data, it can be difficult to acquire the data and then marry the various sources (like multiple back offices) into one.
Streamlined Operations
In terms of streamlining operations, data consolidation enables the integration of information from various business travel processes and sources. Travel data can be difficult to obtain. Sometimes the data is in obtuse formats or perhaps it is in an on premise database at the TMC. This integration creates a centralized and cohesive view, reducing manual efforts, minimizing redundancies, and facilitating seamless coordination throughout the travel lifecycle.
Better Decisions
When it comes to enhancing decision-making, consolidated data provides decision-makers with comprehensive insights into business travel activities. Real-time or near-real-time access to accurate information allows for data-driven analysis and reporting. This empowers businesses to make informed decisions regarding cost-saving measures, optimization of travel itineraries, and strategic alignment of travel policies with overall business objectives.
Greater Efficiencies
Driving overall efficiency is a direct outcome of streamlined operations and enhanced decision-making. Businesses save time and reduce costs associated with manual data handling, errors, and inefficient processes. Resource allocation becomes more precise, enabling optimized travel budgets and identification of cost-saving opportunities. Employees experience increased productivity as automation and streamlined processes free up time for more value-added tasks.
Data consolidation in the business travel industry creates a unified, accessible, and actionable dataset. This not only streamlines day-to-day operations but also empowers businesses with the insights needed for informed decision-making and efficient resource management. The resulting synergy contributes to overall operational excellence and a competitive edge in the business travel landscape.
Would you like to learn how Grasp can help your business and its data consolidation initiatives? Contact us today!
