While the travel and tourism industry has taken quite a gut punch over the past year, there’s hope that things will soon return to normal. And when they do, we’ll get a better taste of the impact big data is having in this space.
What is Big Data?
For 20 years, big data has been widely defined as data that “contains greater variety arriving in increasing volumes with ever-higher velocity.”
“Put simply, big data is larger, more complex data sets, especially from new data sources,” Oracle explains. “These data sets are so voluminous that traditional data processing software just can’t manage them. But these massive volumes of data can be used to address business problems you wouldn’t have been able to tackle before.”
The best way to understand big data is by exploring the “three Vs” mentioned above:
- Volume. The power of big data lies (at least partially) in the amount of data that’s produced and processed. Not every data point is useful or necessary, but it’s the casting of a wide net that creates powerful opportunities and insights.
- Velocity. This refers to the speed at which data is received and acted on. High velocity works in tandem with high volume. (If speeds were slow, the volume would bog down the systems and create costly inefficiencies.)
- Variety. Finally, variety refers to the different types of structured data that exist. This might include text, video, audio, or location-based data.
The tentacles of big data touch every area of our lives. But while we often discuss its impact on science, software, or IT, we rarely dig into the impact it has on fields like travel and tourism. The more we lean into this relationship, the better we’ll understand where the industry is going.
How Big Data is Impacting the Travel Industry
Big data isn’t something most people spend a lot of time thinking about – particularly in the travel and tourism space – but it plays a key role behind the scenes. Here are a few specific ways it’s having an impact:
The travel and tourism industry is more competitive than it’s ever been. The sheer number of businesses operating within individual niches of the travel industry is mind-boggling. Whether you run a hotel, resort, cruise line, airline, or other tourism business, you can’t expect to stand out without a strategy. And one of the best strategies involves personalization.
Thanks to big data, businesses are able to collect, organize, and leverage thousands of data points on customers to identify and meet the unique needs of their audiences. Whereas businesses were once restricted to targeting very broad groups, big data makes it possible to zero in on very specific subgroups and niches. This leads to hyper-focused messaging, more relevant offers, and improved customer experience.
Another related point of emphasis is how big data – and particularly the analysis of the data – empowers these businesses to understand why their customers make the decisions they do. In other words, it helps answer questions like, why did they choose us over the competition? In crowded markets, the answer to this question can create much-needed clarity and serve as the basis for marketing, advertising, and even content strategy.
In a post-COVID world, unique differentiation will prove to be a marker of success for businesses that survive and thrive. Traveler expectations are higher than they’ve ever been, and it’s the businesses that provide clarity and reassurance that will win customers.
3. Security and Vetting
Border security, as it relates to international travel and tourism, has always been an important issue. But it’s become even more critical as it relates to COVID and related health concerns.
For years, developed countries have relied on big data to fuel their border control and immigration systems. Canada, for example, uses an Electronic Travel Authorization (eTA) system that requires travelers to register for entry. This allows the country to collect data on visitors, identify potential threats, and understand when and where people are entering. Most other countries have a similar system in place.
In the coming years, it’s possible that big data will lead to major advances in “Smart Borders” – border security systems that are designed to create safe and cost-effective geographical demarcations that prioritize the safety and well-being of both nationals and travelers.
Smart borders, which rely on a steady influx of big data, allow countries to (1) employ risk-based decision making, (2) enhance standardization through the normalization of data requirements and international partnerships with other nations, (3) improve cost-savings for governments by diminishing the need for resources at the border, and (4) welcome new innovation into this part of the travel ecosystem.
4. Real-Time Travel Assistance
So much of the growth of big data is powered by the evolution of the smartphone. With 81 percent of Americans now owning a smartphone (up from just 35 percent in 2011), nearly every traveler is a walking data point. And while we can talk all about the security concerns of constantly giving out personal information, one of the benefits of this around-the-clock connectivity is the opportunity for real-time travel assistance.
Mobile apps are popular among most travel and tourism companies (including hotels, airlines, tour companies, travel planners, etc.). And many of these apps are able to use location data to make tailored recommendations to travelers. For example, an app notices that a traveler is staying in a hotel that’s located near a popular attraction. A push notification is then sent to the user’s phone for a 20 percent discount on the price of admission. Or, the app – which has been given access to the user’s contact information – sends out an email newsletter with top travel tips for the area.
Some people might find notifications like these to be annoying, but others find them helpful. Companies will have to find the balance between intrusive and helpful. Once they do, the sky becomes the limit.
5. Revenue Management
As much as they may enjoy helping people, every business in the travel and tourism industry has one major goal: drive revenue and maximize profitability. Big data can help in both of these areas.
Take hotels as an example. Hotel managers can use big data to improve revenue management. In particular, they rely on internal data relating to historical occupancy rates, average revenue per room, and guest information (location, return stay frequency, etc.). They can then contrast that internal data with external signals, such as time of year, holidays, and market rates for other nearby hotels. This leads to dynamic pricing strategies that are better able to maximize revenue and drive optimum profitability.
On a related note, big data can also help project demand. This allows hotels, resorts, and even tourist sites to more accurately staff their businesses so that they’re prepared but not over-staffed.
6. Reputation Management
Revenue management is difficult without a proper reputation management strategy. In today’s internet-connected, social media-driven marketplace, you must have a strong reputation to be competitive within your niche. Big data makes it possible for a business to accurately manage its reputation in positive and productive ways.
Take social listening tools as an example. With the right social listening software, businesses can automatically and intuitively listen to what customers (and target customers) are saying on platforms like Facebook, Twitter, Instagram, YouTube, etc. These systems rely on keyword data and sentiment (which can be detected via advanced algorithms) to judge how the marketplace feels about a brand and/or the larger industry. And because this happens in real-time, it’s possible for businesses to then respond with more strategic content and advertising.
7. Market Research
As always, market research plays a catalytic role in business growth. And while most businesses are focused on collecting data for the purposes of understanding their own businesses and customers, there’s something to be said for leveraging big data to study the competition and gather valuable market research on strengths, weaknesses, opportunities, and threats. This often leads to better innovation and more strategic partnerships.
Adding it All Up
Big data is having a noticeable impact on industries far and wide. From product development and predictive maintenance to machine learning and operational efficiency, it’s making its presence known.
From industries like software and IT to ecommerce and tourism, big data is truly living up to its name. And the more we understand what it is and how it’s influencing the world around us, the more opportunities we can leverage in the coming years.
Why (and How) Startups Should Implement Performance Management Early – ReadWrite
A company is only as successful as its people. However, early-stage companies often deprioritize proper talent management and place all their focus on the day-to-day operations of the business. These companies eventually find themselves reaching a point where their talent management processes aren’t keeping up with growth.
Hiring and retaining the right talent for your organization is just as crucial as having a great service or product, especially in the early stages of building a company. In this article, we list some important considerations in implementing employee performance management for startups.
Implementing Employee Performance Management Early
1) Define company values
Firstly, startups should define their company values. Values are the guiding principles and fundamental beliefs of an organization, and there are many benefits in defining company values early on. For example, having a core set of company values makes it easier for a company to hire and retain employees with the right aptitudes. Moreover, values help shape company culture, which will influence employee experience, engagement, and productivity.
In addition to defining values, startups need to ensure that their values are communicated frequently. Only 27 percent of U.S. employees strongly agree that they believe in their organization’s values. Instead of simply listing values on your website, startups need to integrate values into their talent management process. They can do this by:
- clearly and frequently communicating the company’s values
- aligning core values with behaviors expected from employees
- continuously monitoring employees’ actions and behaviors
Integrating values into the performance management process enables the employees to live and practice company values on a day-to-day basis. Companies can also make their values known during the hiring process – write the values in the job description and reiterate these values during the recruiting process.
Candidates and current employees should always be aware of the fundamental beliefs of the company. One tip on values – make them as actionable as possible. If one of your values is “honesty,” define specific behaviors that enforce and demonstrate honesty. (There are many resources (Korn Ferry, Iota Consultants, Ignition Group, etc.) that can help you define or adapt company values.)
“If I could go back and do Zappos all over again, I would actually come up with our values from day one.” – Tony Hsieh
2) Align goals
Effective performance management begins with goal alignment. Understanding company objectives is imperative. Half of the workforce doesn’t know what is expected of them. Managers should understand every company’s mission, clearly communicate the objectives, and make them easily accessible and visible for all team members (e.g., team-wide monthly progress report).
In terms of goal alignment, a common question that startups often face is “should I use OKRs?”
OKRs (Objectives and Key Results) are often used to cascade goals from the organizational level to the individual level. This can help create goal alignment as it helps employees understand how they contribute to organizational objectives.
OKRs are powerful; however, if a company’s strategies and objectives are frequently adapting (which is often the case in startups), the structured top-down approach of setting OKRs from the organizational level to department- and then to individual levels can be a hassle.
OKRs would need to be adjusted each time overall organizational strategies are changed. Frankly, this is a significant exercise that is not worth the time.
This doesn’t mean a company shouldn’t align goals. One approach is to set up OKRs at the organizational and department levels on a monthly basis and let managers delegate and own their key results and adapt as often as needed.
“Building a visionary company requires one percent vision and 99 percent alignment.” – Jim Collins and Jerry Porra
3) Develop a culture of feedback
Feedback is crucial in the talent management process. There are many benefits to having regular feedback conversations with employees. Firstly, it motivates employees, thus increasing employee engagement & productivity. Secondly, it generates lots of employee performance data which can enable better training and talent decisions. Finally, it enables better work relationships which can have a significant impact on company culture.
While managers may avoid giving feedback due to fear of hurting an employee’s feelings, more than half of employees want corrective feedback over praise and recognition! Most employees want real-time feedback and recognition for jobs well done.
The younger generations (Millennials and Generation Z) want 50 percent more feedback than other generations. Sharing feedback can be challenging at first. Enforcing the right processes and rituals early on will help ingrain feedback into your company culture. It is worth noting that creating and sustaining a culture of feedback is easiest to implement early on.
When it comes to documenting feedback, pen-and-paper approaches can be sufficient for early-stage companies. If an organization has more than 15 people, it will highly benefit from a performance management system that helps store and analyze feedback, objectives, etc., in one place. Ultimately, this will help simplify the performance management process and enable people analytics to help make better talent and training decisions.
“Make feedback normal. Not a performance review.” – Ed Batista
Implementing a performance management process in the workplace early on will better equip startups in developing and motivating their employees and ultimately improve a startup’s success and growth.
Remember that culture and people cannot be replicated – these two factors often differentiate a startup from its competitors. Your culture and people are worth the investment upfront.
Image Credit: ron lach; pexels; thank you!
Gabb Wireless Raises $14M in Series A Funding Led by Sandlot Partners and Taysom Hill – ReadWrite
Gabb Wireless Raises $14M in Series A Funding Led by Sandlot Partners and Taysom Hill
Gabb Wireless™ set itself apart from the crowd in 2018 when Founder and CEO, Stephen Dalby said, “enough is enough,” and began his journey to provide the only safe phones-for-kids.
LEHI, UTAH – APRIL 20, 2021
Dave Jensen, Managing Partner of Sandlot Partners, announced today that, “Sandlot Partners is investing and partnering with Gabb Wireless not only because of its impressive growth and positioning to lead the $30 billion smartphones-for-kids market — but also because it is providing solutions to address the significant screen time addiction problem in our society.”
Gabb Wireless™ is the first of its kind — a company determined to protect children by providing a safe cellular network for kids and their phones. Gabb created the only safe phones-for-kids serving this underserved demographic. Gabb announced this week that it closed a $14 million round of Series A, led by Sandlot Partners and New Orleans Saints quarterback, Taysom Hill.
“As an investor, Gabb checked all the boxes with its impressive growth, founding team and total addressable market. But it’s so much more than that for me. It’s the emotional side of the investment. I love the idea that we can help build something to help save kids in an area with so much need and demand. My wife Emily and I try to be pretty selective of who we tie our brand to — and when considering the chance to invest and partner with Gabb, it was a no-brainer for us and something that we are extremely excited about,” said Saints quarterback, Taysom Hill.
Stephen Dalby, Gabb Founder & CEO, announced the partnership with Sandlot Partners and Taysom Hill. “We’re excited to announce our partnership with Sandlot Partners and Taysom Hill, who share our passion for driving impact and providing solutions to the growing screen addiction among adolescents.”
“Sandlot has a strong track record of fueling growth and adding value to their portfolio companies. Taysom’s accomplishments as a BYU and Saints quarterback are well documented, and he’s also very impressive off the field and will be a great brand ambassador for the younger demographic Gabb is targeting.”
Kids need to be protected — and Gabb resolved on an action to do just that. Gabb set itself apart from the crowd in 2018 with a steadfast purpose to get safe, effective phones into the hands of parents who want to protect their children from inappropriate content and disturbing practices on social media and games, and other screen-time issues on the internet.
For some time, it’s been known that social media is affecting our youth with cyberbullying and other societal ills. The average child or pre-teen spends about four to seven hours a day of screen time. This disproportionate amount of time in front of a screen has caused depression, anxiety, and even sexual abuse among young adolescents.
Gabb said, “enough is enough,” and began its journey as a mobile virtual network operator, creating the safest technology available for children today. Gabb offers age-appropriate products to give kids the freedom to explore and their parent’s peace of mind. Children can enjoy their first phone experience with the affordable, $100 phone that protects them from internet dangers. Learn more at www.gabbwireless.com.
Gabb has had an unprecedented year of 471% growth and will use the proceeds from the Series A financing to accelerate efforts to provide safe phones for kids and expand its product lines — increasing Gabb’s total addressable market with these safe alternatives for parents of kids ages five to 15.
Sandlot Partners is an independent private investment firm partnering with noteworthy management owners and founders. Sandlot Partners help maximize the growth potential of businesses by providing companies with growth capital, strategic guidance, and partial liquidity. Sandlot leverages its network of founders and operators, identifies growth opportunities, helps structure, and offers additional strong risk-adjusted private investment opportunities. Sandlot investors also include family offices, strategic individuals, and like-minded institutions seeking strong alignment and providing patient capital.
Cooley, LLP, and VLP Law Group provided legal services for this transaction.
How to Build a Startup Team With an Entrepreneurial Mindset – ReadWrite
Much of your startup’s success will depend on the quality and integrity of the team you put together. With talented, committed, hardworking people, even a merely decent idea can turn into something groundbreaking. Conversely, even a great idea can struggle to survive if it doesn’t have a solid team in place to support it.
Obviously, you’ll need to work hard to choose the right people for your team – individuals with a solid experiential background, proof of ample talent, and genuine passion for the business. But beyond that, you’ll need to work actively to equip your team with the right mindsets and philosophies to guide them to productive, innovative work.
While there are conflicting opinions for what type of company culture works “best,” there’s no denying that your company can (and likely will) benefit from building a team with an “entrepreneurial mindset.” But what is this mentality, and how can you construct it from scratch?
What Is an “Entrepreneurial Mindset?”
Let’s start with a description of the “entrepreneurial mindset.” This is an internalized mentality, philosophy, and approach to working within the members of your team that mimics what the most ambitious entrepreneurs tend to feel.
The mindset includes:
- Creativity. Entrepreneurs are creative types. They want to create new ideas, modify existing ones, and come up with inventive new ways to deal with problems. They’re not afraid to think outside the box and try out new concepts – even if they don’t work out. They also like to encourage and promote creative ideas from other people, providing feedback, direction, and motivation to their teammates.
- Autonomy and independence. The entrepreneurial mindset also prioritizes autonomy and independence. Entrepreneurs in a business environment don’t wait for someone else to tell them what to do, and they generally don’t have to run their ideas through a bureaucratic chain of command to take action. Instead, they trust themselves, they operate decisively, and they remain agile. In an entrepreneurial environment, your employees will function autonomously in most cases as well.
- Change and growth. To be an entrepreneur is to accept the importance of change and growth. The only way for your business to reach more people and make more money is to evolve; that means adding new products and services, changing internal processes, and sometimes, pivoting the entire brand.
- Experimentation and adaptation. You probably already know how important it is to remain flexible and adaptable when growing your business. It’s also important for your workforce. With an entrepreneurial mindset, your team of employees will be much more likely to experiment with different approaches and adapt to new scenarios.
- Ambitious problem solving. Successful business owners are primarily ambitious problem solvers; they understand there’s some weakness or challenge in the world and are driven to “fix it.” With this mentality, your employees will be more likely to show enthusiasm when solving problems and rising to meet challenges.
The Value of an Entrepreneurial Team
So what’s the real value of an entrepreneurial team?
For starters, you can cut back on direct management and oversight. When all members of your team feel like they have a direct impact on their work environment, and when they’re empowered to do their best, they don’t need as much direction or supervision. Instead of looking over their shoulder, giving them project details, or micromanaging your employees, you can set priorities for them, trust that they’re going to work toward them, and shift your attention to more important matters. This lends itself to a less stressed, more inviting workplace – and allows you to be more productive while tackling the most important projects for your startup.
An entrepreneurial mindset also leads to a diversity of thought. When individuals are encouraged to have their own ideas, thoughts, and opinions, they tend to speak more openly in a collaborative environment. They’re more willing to volunteer ideas, offer constructive criticism, and provide meaningful feedback to each other. Such an environment makes it much easier to identify and get rid of bad ideas (before it’s too late), while simultaneously establishing the groundwork for the presentation of highly ingenious concepts.
Additionally, startups need to keep adapting if they’re going to stay alive. Over time, your target market might change, you might face new competition, and new challenges will threaten your previous approaches. The only way forward is to adapt, incorporating new systems and processes and changing your infrastructure. Ordinarily, teams of employees are reluctant to adapt – after all, most of us don’t particularly like change. However, when the team accepts the importance and value of ongoing adaptability, they’ll be much more likely to be onboard with your latest changes and experiments.
How to Build a Startup Team With an Entrepreneurial Mindset
Now for the big question – how can you build an entire startup team with a baked-in entrepreneurial mindset?
- Create the culture. Everything stems from your company culture. Before you employ any of the following strategies, make sure you have a solid idea for what you want your company culture to be. What are your core values? What is the “ideal” employee mindset? How should this mindset be fostered? What rules exist, if any, to enforce this? Document your company culture guidelines first.
- Choose the right candidates. With a culture document in place, you’ll find it much easier to interview candidates – and find out whether they’re a good fit for this environment. Even if they have a lot of talent and experience, they may not thrive in an entrepreneurial workplace; figure this out early, before you hire someone.
- Lead by example. You’re the leader, so set the tone. People will follow your example. Whatever habits you want your employees to practice, incorporate them into your own daily work.
- Nurture from the top down. You’re not the only leader within your organization, so make sure you select and support strong leaders who can embody and spread your desired entrepreneurial culture from the top down.
- Encourage independent management and decision making. Sometimes, employees will have to run their idea “up the ladder” before taking action. But as much as possible, it’s important to encourage autonomy and independent decision making. Empower your employees to make their own decisions, set their own goals, and devise their own approaches to work.
- Stimulate creativity. Creativity is vital for an entrepreneurial mindset to thrive. Use creative brainstorming sessions, music, art, and other exercises to encourage your team to think in novel ways.
- Get everyone to contribute in meetings. Encourage every member of your team to contribute in your meetings. More contributors will foster an environment of openness and collaborative sharing; it will also help you ferret out the best ideas, which otherwise might be held back by nervous participants.
- Reward good ideas. When a member of your team comes up with a good idea or solves a complex problem, reward them and publicly praise them. It will encourage further idea generation in the future and motivate other team members to volunteer their own ideas.
- Respect bad ideas. It’s not just about good ideas; it’s also important to tolerate and even respect bad ideas. When someone volunteers a questionable idea or makes a poor decision, show your support. Feel free to offer feedback and criticism, but don’t make the person feel bad for trying to do something inventive or helpful. You don’t want to punish people for trying something new.
- Remain adaptive. The most innovative, disruptive businesses are the ones that can adapt. Encourage your team members to remain similarly adaptable, keeping an open mind for new ideas and being willing to change when necessary.
Once your team is full of people thinking and acting like entrepreneurs, your company will be much more flexible, innovative, and productive. And best of all, this entrepreneurial culture tends to be self-sustaining; your employees will naturally spread it to new recruits and continue to foster this creative, efficient environment.