How Big Data Analytics Is Reforming the Travel Industry

Big Data and analytics primarily reform all aspects of the travel industry, and companies that fail to adapt are lagging behind in the data-driven industry. Big Data Analytics improves customer experience, increases business efficiency and revenue management in the travel industry.

The travel industry generates and works with large amounts of data around reservations, queries, itineraries, hotel bookings, rental cars, trains, airlines, ticket cards, customer feedback, etc., leaving long data tracks. Travel is overflowing with data and companies are increasing their dollar spend to get the insight this gives them, according to Eye for Travel’s new industry-wide State of Data and Analytics in Travel Report 2017.

According to the report, 74.5 percent of participants expect a budget increase for data and analysis in 2017. More than 50 percent of the sample suggests a budget increase of the tune of 6 percent or more, and 30 percent expect it to increase by 11 percent or more. Participants were most optimistic about budget increases in Asia-Pacific, followed by Europe and then eventually North America. This geographical breakdown is governed by how participants view the coming year for the travel and tourism industry as a whole. In both Asia and the Pacific, 16.3 percent of the sample size is neutral or negative in terms of growth prospects for this year versus 23.3 percent of North American respondents.

The travel and tourism industry has realized the importance of data analytics and is in a comfortable position to further leverage it to their advantage. The travel industry is rapidly catching up with other industries in terms of analytics and data distribution. These planned budget increases will help get the maximum value out of the huge amount of data already in silos and more that will be generated in the future by using analytical techniques that can help gain useful insight from this.

Below are some of the improvements that travel intelligence, through Big Data Analytics, can bring in the two areas – customer experience and business efficiency improvement.

  • Personalized customer experience – Accessibility of personal data from social media platforms and Big Data Analytics helps make travel more responsive and focused on the needs of travelers as well as preferences. Better targeted services create better customer relationships or more loyal customers and ultimately better revenue
  • Personalized customer experience – Accessibility of personal data from social media platforms and Big Data Analytics helps make travel more responsive and focused on the needs of travelers as well as preferences. Better targeted services create better customer relationships or more loyal customers and ultimately better revenue
  • Superior pricing strategy – Big Data Analytics effectively replaces traditional manual ticket analysis with smart automation by collecting, indexing, filtering and analyzing existing and real-time data from multiple sources. Dynamic analysis of competitors’ pricing will help travel companies create a better pricing strategy for travel. Big Data Analytics allows travel sites to predict price changes over time to better meet their consumer needs.
  • Customer analysis and service improvement – Examining customer buying patterns, objections and feedback by analyzing data collected from online forums, social media platforms, reception, call center conversations, etc. will help identify customer intentions and help design a business strategy.
  • Marketing and sales optimization – Big Data Analytics is increasingly being used to optimize marketing efforts for targeted travelers by customizing the offers based on their requirements. Service providers that analyze large amounts of unstructured data gain valuable insights that allow them to deliver targeted offers at the right time, place and through the right channel. Service providers can also track their customers and make location-relevant real-time offers by enabling GPS data analytics.

It is clear that Big Data has the potential to revolutionize the travel industry. A sound Big Data Analytic strategy becomes indispensable to identifying consumer trends, travel patterns, threats and opportunities.

However, Big Data Analytics in the travel industry is still in its embryonic phase, the industry is trying to overcome despite a lack of data scientists, affordable infrastructure and cost of implementation. However, given the current pace of the digital revolution, it is clear that early adopters will certainly have an edge!