Amazon’s presence in the travel industry goes beyond its traditional online retail expertise. While the company is not directly selling travel packages, its subsidiary AWS is making waves in the travel industry by providing innovative cloud computing solutions.
In the second quarter, AWS revenue grew by 12% year-over-year to $22.1 billion, contributing 70% of Amazon’s operating profit. Some of AWS’s cloud customers include notable brands like Travelport, ATPCO and Trip.com. That showcases the importance of AWS’s behind-the-scenes role in the travel industry.
Through collaborations with travel brands like Trip.com, Lonely Planet, Amazon Bedrock and Ryanair, AWS is establishing a solid presence in the travel industry as a leading cloud provider. To better understand the company’s activities in the Travel sector, we’ll look at an exclusive interview between Phocus Wire and Massimo Marin, the global head of Travel at AWS.
How Amazon is Reducing Travel Complexity with Technology?
Travel is a complex industry that relies on intricate processes and legacy technologies. Morin highlights that even seemingly simple interactions like booking a flight involve numerous backend operations, many of which still run on outdated mainframe systems.
Massimo says that one of the main challenges that most companies in the travel industry are facing is modernizing their technology framework while retaining the expertise of their legacy systems. Outdated technology affects customer interactions in travel.
These legacy systems also hinder efficient call handling, resulting in long wait times and inadequate customer support. Amazon Connect, a cloud-based contact service by Amazon, offers solutions to this problem. The technology enables you to prioritize the queues based on the flyer status, how much they spend and other factors.
Airlines like Delta and platforms like Priceline are already using this Amazon Connect system to prioritize calls, personalize support, and offload tasks to AI-powered chatbots. One of the biggest challenges in the industry today is that most companies don’t have enough workforce, or the available employees are not trained enough.
So, this system helps solve some of these shortcomings by allowing customers to self-serve through chatbots. That has significantly improved their customer experiences and taken off the load from the customer service team.
Amazon Bedrock and Generative AI
Amazon Bedrock is a service focusing on generative AI applications. Generative AI helps to engage customers, hold conversations and communicate in a much more natural way. In essence, it uses the data it has on customers to curate engaging experiences for them.
Morin further explains the significance of machine training and model access in this process.
Amazon Bedrock also aids companies in the travel industry, such as Lonely Planet, in creating AI-driven content consumption mechanisms. In the case of Lonely Planet, generative AI enhances content accessibility for the more digitally oriented audience.
The Future of Tech in the Travel Business
Morin says, looking ahead, travel businesses are seeking ways to leverage data effectively. The focus is on understanding customer behavior, improving operations, and creating more tailored services.
He says that these are things that AWS offers. With AWS, companies can enjoy low-risk, high-value solutions that will help them optimize their customer experiences and marketing campaigns. The journey into cloud technology begins with these simple yet transformative steps.
In Summary
Amazon’s place in the travel industry might not be as significant as the traditional players, but the company is driving positive change in the sector through AWS. Amazon lays the foundation for a more efficient, personalized, and streamlined travel experience.
That’s because it addresses some of the complexities the travel sector has faced for years. Through modern technology, Amazon AWS enhances customer interactions and encourages the adoption of Generative AI in the travel industry.
