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Summary
The travel and leisure industry has an opportunity to grow its business if it can
successfully navigate changing consumer expectations and technology trends. Family
income is on the rise for the first time since 2007, which means consumers are likely to
spend disposable income on travel and leisure. However, non-travel companies have
raised the bar in consumer expectations, which introduces demanding challenges for
the industry.
1. Experience Over Loyalty - Consumers have more choices than ever. From travel
aggregators to homesharing services, consumers today can evaluate a multitude
of options on price and convenience in just a few clicks. They care more about
their experience than the brand or number of points in their loyalty program
account. Many are also looking for unique, boutique options and “live like a local”
experiences. Capturing customer behavior to anticipate purchasing preferences to
deliver the right experience is one of the biggest challenges facing the industry.
2. Travel-as-A-Service - Travel and leisure businesses that broaden their scope are
winning the data game, and businesses that specialize on a vertical service are
finding it difficult to build a traveler’s customer profile. For good reason, companies
like Airbnb are taking a page from the cruise line industry and launching their own
versions of shoreside excursions, offering destination trips and experiences. The
more a company can provide for the overall travel experience, the better a picture
they can form of the customer and deliver the services they value. Doing this
effectively means creating a data-driven customer profile across multiple services.
1
Deloitte, Travel and Hospitality Industry Outlook 2017
4. Security Across Channels - Selling in the connected world isn’t without risk. By
connecting with travelers across multiple channels and devices, companies introduce a
growing number of points of vulnerability. It’s imperative that data services, networks,
and the underlying infrastructure are properly secured and monitored for malicious
activity. Data breaches as a result of increasingly sophisticated attacks make headlines
that can seriously impact the business and create long-lasting damage to a brand. Any
goodwill and loyalty a brand may have spent decades building can be decimated in
minutes by a technical oversight.
However, for many mainstream travel and leisure brands, there are several factors that make
data-driven personalization particularly difficult. These factors include how travel and leisure
brands engage with customers, operational realities and technical challenges.
Because travel and leisure are in-person service operations they face the unique challenge of
balancing cloud/datacenter capabilities with edge capabilities: more specifically, the point of
engagement with customers during their travel or guest experience.
Quite frequently, on-property personnel are not sophisticated technicians, which limits what
solutions can be deployed. The industry’s transition toward data-driven and IoT-enabled
real-time personalization has a real potential to exacerbate these challenges. The upside
is that the use of “lights-out” unattended systems that have been built for self-healing
operations are now becoming commonplace and require less-skilled operators.
Technology Challenges
Legacy systems for travel and leisure were not built with cloud operations in mind.
Traditionally, legacy systems are so highly customized to the industry that they block
community-based collaboration and make it hard to hire engineers. In specialized
systems, compute resources sit idle for most of the business day. In many cases, “islands of
automation” act as containerized monoliths in the cluster and run very specialized workloads
for only a small portion of the day. This also leads to data silos, which cannot be easily
exposed to web and mobile applications, and the data loses its value as an enterprise asset.
Legacy systems present the following additional drawbacks:
• Maintenance difficulties: The rise of distributed service architectures and the use of
dynamic scaling results in vastly more systems tasks and responsibilities to maintain.
Using legacy-based maintenance methods for updates or patching configurations across
hundreds or thousands of compute instances is difficult, error-prone, and a time sink.
Modern Dev-Ops techniques and deployment practices (e.g. Continuous Integration/
Continuous Delivery, blue-green upgrades) and elastic operations techniques (auto-
scaling, load balancing) are now required to support real-time and distributed systems.
Having the correct architecture for distributed systems operations increases uptime and
reduces the sisyphean legacy maintenance issues.
The most impactful solution should enable IoT, big data, fast data, microservices, and
scalable clusters to pave the way to innovation of new services and profitability:
• Highly Resilient & Scalable - Cloud-native architecture to meet elastic demand, provide
high availability, support multi-tenancy, and enable self-healing through failures.
• Secure - Integration with enterprise Single Sign-On (SSO), Active Directory/LDAP as well
as secure computing support with SSL to support the enterprise security perimeter.
Microservices development is supported with an integrated secrets store coupled with an
ability to apply fine grained access controls for application by user and/or group.
• Maintainable & Extensible - With open source as the foundation, architects and
developers can collaborate on solution patterns as well as algorithmic solutions.
Additionally, the system should enable use of modern languages to allow specialization
through inheritance or aggregation to add the “secret-sauce” on top of the generalized
“open source” solution.
• Internet of Things (IoT) - Much of the innovation in the travel and leisure space will
leverage internet-connected devices to provide automated and personalized customer
experiences. Such systems can generate a significant amount of data from a large
number of endpoints, so the platform needs to be able to elastically manage this speed
and scale.
Mesosphere DC/OS serves as a platform for container orchestration and data services
operations, providing a universal toolkit to enable a travel and leisure organization’s
datacenter operations. Running containerized microservices on the DC/OS container
orchestration engine (Marathon) allows organizations quick and efficient prototyping and the
ability to build business applications that both meet the needs of internal teams and better
serve customers.
Dynamic Pricing
Fast data systems are driving dynamic pricing that allows for real-time adjustments to
mobile and web-based shoppers. Price for perceived value is the driving factor in consumer
shopping decisions for web and mobile customers. Knowing what the competition is doing
and the status of inventory and occupancy levels must drive real-time and dynamic pricing to
close sales. Competitive scraping bots populating big data lakes with this information along
with fast data provides feedback to browsing prospects that offer accurate inventory and
occupancy levels that drive fulfillment expectations.
Personalization
While loyalty may not be the top driver anymore, it’s still important for travel merchants
and hoteliers to continue cultivating close ties with shoppers with individualized coupons,
targeted marketing campaigns, and special pricing. It also reinforces the power of
one-to-one connections with customers via personalization, which new online entrants
cultivate rigorously. Big data systems capture deep information on consumers for higher
degrees of personalization.
Customer 360
The ability to build a complete, 360-degree profile of the customer is paramount. Unlike
everyday household purchases, the opportunities to mine behavioral data on travel and
leisure purchases are usually few and far between. In order to paint a complete and timely
picture, travel and leisure brands need to get creative on their data sources, mining social
profiles and online behavior for additional information. Which vacation photos are they liking
on Instagram and Facebook? Have they expanded their family and are more likely to book the
family-friendly vacation package? By adding social to their data sources, travel and leisure
companies will be able to find the right customers at the right time.
Customer-centric Engagement
Hoteliers and leisure companies need to entice customers to interact with them — whether
online or in-store — and keep them coming back. The omnichannel and seamless
online-to-physical and physical-to-online experience will be key to success in the 21st
century as technology blurs these transitions. Finally, not only will good product assortments
entice customers, but also purchase history and preference information — along with
knowledgeable sales information — will further the integrity of the travel merchant or
hotelier. This is an essential characteristic of a customer-centric core value in our
knowledge-based society.
• Innovation through Open Source - Facilitate innovation with an open platform and
avoid highly customized solutions.
Internally developed microservices alongside data services deployed from the DC/OS
Universe catalog accomplish this complicated orchestration between the cruise line’s cloud
and fleet of ships. Real-time streaming data is synchronized from the corporate cloud to ships
at dockside prior to a cruise, and voyage data following deployment is sent back from the
ship to the corporate cloud. The local data contains a diverse mixture of critical information,
from muster location for an “abandon ship” drill required by international law to the names of
children in a passenger’s party and all necessary information for a meaningful user experience
with at-sea apps that enrich the cruise experience.
The use of DC/OS is important because historically, cruise companies use highly customized
solutions that make collaboration outside of the company impossible. In fact, collaboration
and partner interaction will have ever-increasing in importance in the digital economy
and the cruise industry. With greater partner collaboration and interaction, there are more
opportunities for specialized cruise experience enrichment with systems that are built to be
both open and integratable. This type of creativity and passenger enrichment is not possible
with older industry legacy systems.
Availability and uptime on any system must factor in maintenance, which includes upgrades,
security patches, and performance improvements. The time budgets for varying systems
uptime are listed below:
The cruise line can run multiple physical environments with partitioning to reduce costs. For
example, a partitioned development and testing environment in the same cluster effectively
eliminates development environment costs by 100%. Both environments are consolidated
into one highly utilized cluster, as the DC/OS environment illustration above demonstrates.
Cruise companies can also move ETL, Map-Reduce, and analytics processing within the
Enterprise Data Lake as a single partitioned cluster. There are several cost-savings drivers:
6. Clusters typically make use of local IP addresses. In the case of AWS, this is a
little-known cost savings over public IP address.
7. Cloud data transfer costs are minimized, as data transfers would be limited to
transfers across availability zones (due to fault tolerance and high availability
requirements) and within the same availability zone for optimal cost savings.
Unfortunately, many companies’ operations waste computer capacity because their platform
makes horizontal scaling impossible or difficult. With DC/OS, adding a “scaling increment”
by virtue of the addition of a new virtual machine to the cluster requires no downtime at all.
For example, assume a scaling increment of a virtual machine that has 40 CPUs and 160 GB
of RAM. In this example, a development scaling increment = 2 CPU Cores and 8GB of RAM per
microservice. So 20 new microservices would fill this scaling increment for a development
epic. To complete the story in this example, prior to a new development epic, a systems story
and associated tasks would be added to the agile backlog for manually scaling out the cluster.
This addition is cost effective, as wasted capacity is eliminated because actual demand (plus
a comfortable headroom factor for spikes) keeps OPEX cloud cost minimized and utilization
maximized. DC/OS makes scaling a cluster simple and adds to the cost effectiveness of cloud
and on-premise datacenter operations.
This way, short development and update cycles can be achieved while retaining SOA
infrastructure for more stable and less volatile services and applications. This is one
way a cruise company can partition their digital transformation initiatives based on the
velocity needs of a rapidly evolving competitive landscape in the cruise industry of today
and tomorrow.
Recognizing the shift toward distributed systems can be new for many organizations,
Mesosphere provides software, support, training and professional services, working closely
with strategic customers to get to desired outcomes.
The level and duration of professional services support can vary based on the customer’s
experience with Linux, Apache Mesos, distributed systems, and cloud native architectures
in general. In some cases, organizations that are already experts in Apache Mesos or the DC/
OS open source distribution look to Mesosphere for mission-critical support. Alternatively,
customers choose to have Mesosphere solution architects embedded with internal enterprise
architecture and engineering teams to ensure the implementation of distributed systems best
practices, in addition to mission-critical support and training.
Conclusion
Travel and leisure brands face a unique challenge as they engage with customers infrequently.
Users still, however, have the same expectations driven by today’s always-connected
mobile-cloud economy. Successful brands will be able to deliver omnichannel experiences
that help build a more comprehensive view of the customer and deliver personalized,
relevant, and in-context opportunities for conversion and deliver greater value. In all use
cases, the need to manage users and data in real time and at scale is common.
A rich selection of pre-configured platforms and services from the DC/OS services catalog
means enterprise and application architects have the building blocks they need to build
out a business computing infrastructure that is highly adaptable and resilient. Finally, the
“datacenter/cloud as a single computer” operating model provided by DC/OS enables the
leading cruise line a high degree of automation and cost efficiency.