The rising cost of data storage is just one factor in the growing complexity of managing vast volumes of data while maintaining security, efficiency and profitability.
A recent Travel News poll revealed that 36% of travel agencies report rising data storage costs as a significant challenge.
Steven Scheffler, Chief Technology Officer at Travelstart, acknowledged the burden of data storage expenses.
“Data storage is a significant factor in our overall operational costs. In the travel industry, the volume of data we process is extensive, encompassing customer details, booking histories, flight and hotel information, and transaction records. Effectively managing and storing this data while keeping costs efficient is an ongoing focus,” Scheffler told Travel News.
Travelstart’s reliance on data extends beyond basic storage needs. The company employs a sophisticated cloud-based infrastructure with a data lake to centralise structured and unstructured data.
This setup enables the use of advanced business intelligence tools and machine learning models, enhancing personalisation and operational efficiency.
“Data storage is essential for Travelstart, supporting everything from secure customer transactions to advanced insights that drive a better customer experience,” Scheffler explained.
However, securing client data comes with steep financial demands. Without disclosing specific figures, Scheffler emphasised the substantial investment required to meet stringent regulations such as the General Data Protection Regulation, POPIA and Payment Card Industry Data Security Standard (PCI DSS).
“Compliance with PCI DSS, in particular, is critical as it enables us to securely handle payment data and protect against fraud,” he said.
But, rather than see these costs as detrimental to profitability, Travelstart sees them as investments necessary to profitability.
“Data storage and security are necessary expenses and a part of our operational costs rather than a profit challenge. However, we continue to seek efficiencies and optimise storage solutions to balance cost and performance,” said Scheffler.
Scheffler added that the risks of inadequate data security were severe, including legal penalties, reputational harm and financial losses.
For Travelstart, maintaining robust data protection measures is non-negotiable.
“Data security is foundational to customer trust and we have stringent measures in place to mitigate any risk to the sensitive information clients entrust us with,” Scheffler affirmed.
As the travel industry continues to adapt to a data-driven landscape, managing storage costs while ensuring security will remain a critical balancing act.
“In an industry as dynamic as travel, data management is more than storage – it’s about how we harness data responsibly and innovatively to enhance the customer experience,” Scheffler concluded.