Big Data and its impact on Travel and Tourism Industry

 Submitted by: Akhil Basil

In this article, we are looking into the topic Big Data and how it helps travel and tourism industry. But first, what is Big Data? 

Big Data is described as large volume of data which are both in structured and unstructured nature that is collected by the companies. These set of data are impossible to process using traditional methods. This big data is analysed by data analyst for insights that help companies to take better decisions and strategic business moves.

 

How does Big Data help travel and tourism industry?

1.     It can help track your competitors

The large volume of data available publicly can be collected and processed with the use of artificial intelligence. These data can help you track the company’s performance against its competitors. This data help you set benchmark against competitors. The source of such data could be from social media, online reviews, customer testimonials, search engines etc. 

The use of algorithms can help companies to detect any defects or service failures in the system. Companies rely on machine learning algorithms to automate various service processes.  This help them to create alerts or track when something is going wrong, setting these alerts can help companies to take immediate action and strategise.

 

2.     Manage your reputations across various online platforms

Travel and Tourism industry is a service oriented business. Customers may write about the experience they had with your service in multiple online platforms and from different parts of the world. Using this customer reviews, companies can capture these feedbacks to understand customer expectations and make relevant changes. Also, these customer testimonials can also be used as free marketing for your business. 

 

3.     Increase your revenue 

Using AI algorithms, companies can track user activity across their platform. This helps companies to personalise offers to customers according to their needs. This helps companies to sell the right products or services to the right customer. This also saves customers time and money. This also help companies to recommend products and services to customers according to their needs. Predictive algorithms can also be used to estimate the rate of conversion, market position and also help in customer segmentation.Use of such AI algorithms can help companies to adjust their prices and be competitive in the industry. 

Big Data can help to combine, manage and store all this information efficiently.It can helps to improve customer satisfaction and provide personalise service to customers. This helps to generate more revenue and profit. 

4.     Help redefine target market 

Analysing customers digital footprints can help companies to understand the target markets better. This helps to customise marketing strategies in more detailed manner and segment customers into different target groups. Big Data can gather information based on predictive analysis based on demand or trend. These are based on factors such as performance, seasonal attractions or trends, weather and public and school holidays. It can also track new trends in the travel industry based on bookings made by customers. These can be categorised on factors like paying capability, behaviour, location preferences etc. 

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References:

• Emerging tech trends in travel and tourism. (n.d.). Retrieved from https://www.traveldailynews.com/post/emerging-tech-trends-in-travel-and-tourism 12, W. P. (2021, October 18).
•  11 Key Technology Trends Emerging in the Travel Industry in 2022. Retrieved from https://www.revfine.com/technology-trends-travel-industry/