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- Insights
- Cryptocurrencies
- Stocks
- White Papers
- Industry
- Geography
With digital transformation and technology evolution, access to a huge pile of information as well as data has become easily available. Unlike traditional CRM information, data is now collected increasingly from blogs, social media posts through the use of smartphones and other digital sources. Owing to the huge amounts of data that are now collected by businesses of all kinds from IT, manufacturing, logistics to healthcare and hospitality big data has become a top priority for many, and this is especially true in the tourism industry.
Tourism is a big industry that makes up to 10% of world GDP. Also, this industry is on the rise owing to global wealth and employment. The United Nations World Tourism Organization (WTO) met in Manilla, the Philippines, for the International Conference on Tourism Statistics. At the conference, a key matter was raised about how big data can be used to better manage tourism.
Every country, every state, and every city has a huge wealth of information that can modify the tourism industry across the globe. But having huge sets of information and extracting actionable insights from that information is a complex process. Here lies the importance of big data and big data analytics. Big data is typically associated with customer reviews, behavior, and habits. Big data enables the tourism industry to carry out predictive and behavioral analyses.
One of the most constructive uses of big data within the tourism industry is linked to revenue management. To maximize financial outcomes, the tourism industry needs to be able to sell the right product, to the right customer, at the right moment, for the right price, through the right channel, and for this big data is highly crucial.
Internal sources of data like room revenue, past occupancy rates, current bookings can be merged with the external source like local events information, flights, etc, this will help in more precise assumptions about the demand. Like for hotels, by gathering all this information they can increase the room rent, increase it when demand is higher and decrease it when demand is lower.
Reputation management is highly associated with customer reviews. With the advent of the internet, customers can give their feedback on different online platforms like social media sites, search engines, review websites, etc. before booking. Customers always tend to check these reviews and compare them with other tourism companies. This data, merged with feedback can be used to highlight the most notable strengths and weaknesses, and to see where customers are impressed or disappointed.
Data collected from marketing campaigns and packages offered highly benefits the tourism companies in the decision-making process. The tourism industry can make informed decisions based on analytics and number-driven data. They can pinpoint targeted groups of potential customers at every step in the tour planning process. Big data can even be used to assume which new products might work well in their market.
The tourism industry has a vast display of interactions with customers, and each of these interactions can yield valuable data, which can be used to enhance the overall customer experience. This data can divulge which services customers like the most, which they do not like at all. Through this data, companies can make more informed, data-driven decisions about the services they currently serve, the services they no longer need to serve, the services they want to launch, and the new technology they select to invest in.
Market research is the most important aspect for all types of industries. The tourism industry can make use of big data to obtain a clear understanding of their competitors like what they are offering, what is lacking in their company etc.
Big data can help in identifying potential gaps in the market, or opportunities to deliver in ways that competitors are failing to. This can, in turn, result in greater demand and higher revenue.
