Big Data in Travel Industry – How technology is revolutionising Tourism Sector
You might already know about the wonders that Big Data have done in various industries across the globe. And the travel industry has been one of them as well. The travel industry is the one that heavily depends on the data it collects and now has become more efficient since the advent of Big Data and analytics into it. It has transformed the travel industry and is now a part of their day-to-day operations.
Big Data is taking the travel industry in the right direction. It takes care of everything that a traveler expects from the traveling company he is dealing with. From personalized offers to giving suggestions about the places you must visit, it is the perfect companion that a traveler needs.
Travelling and tourism industry faces the challenge of selling the right product, to the right customer, at the right moment. Keeping in mind the right price, via the right channel. All this requires internal as well as external data. Internal data like past customer expectation, occupancy rates, room revenue and current bookings. External data, like information about local events, weather, flights and school holidays.
Both the internal and external data helps to get more accurate data. It also assists in predicting future demand and anticipate it in advance. As a result of this, hotels are then better able to manage prices and room rates, increasing them at times of high demand, in order to maximize the revenue that is generated.
It should be noted that more data is better only when the revenue management system helps to improve the price-demand estimates. This system helps to control a particular business mix and pricing strategy. It also helps to enhance the optimization process. Here big data usage basically gives an edge over the competitors and helps the marketer to make a niche for themselves. Revenue management helps in incorporating the analytics and determine which competitive properties are actually relevant to the customer’s that are willing to pay. Also, the competitor rate information can be known and thus this also helps a business to plan the next move.
I do like this blog a lot. This is provided a comprehensive view how big data is revolutionizing in Travel and Tourism Industry. I was surprising when read the term “50% Off on Your Next Flight Booking”, it is real what I experience every single day when see my notifications from SkyScanner, Klook, and Booking. The blog has done a nice job to feed my curiosity, this is the true magic of Big Data and analytics. However, there are actually impressed me by 3 ways Big Data can benefit Travel Industry. Let’s check it out!
ReplyDelete1. Revenue Management: Travelling and tourism industry faces the challenge of selling the right product, to the right customer, at the right moment. Keeping in mind the right price, via the right channel. It was happy to realize some related knowledge of 12 RIGHTS here which I just learn via my recent course in Coursera. Big data assists in predicting future demand and anticipate it in advance through external & internal data. As a result of this, hotels are then better able to manage prices and room rates, increasing them at times of high demand, in order to maximize the revenue that is generated.
2. Reputation Management: In the internet age, customers can leave reviews on a wide range of different platforms, including social media sites, search engines, and dedicated review websites, sharing their opinions and experiences. Customer’s tendency is to trust reviews more than the website. This is so me. Every time I plan to book a room for my travel, I truly spend tons of hours to read the reviews from other patrons.
3. Targeted Marketing: The guest is extremely varied and they can be categorized into n number of categories. It can be according to their spending habits, purchasing power parities, expectations. This is where big data comes in the picture. By understanding the requirements, customer experience and doing market research, the guest experience can be enhanced. All this will also help to create a win-win situation and a loyal customer.
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After reading this article, I have learn about Big Data is very helpful in Travel Industry to make them gain a lot of benefits. This article mentioned about 6 ways of benefit in travel industry to use Big Data. First, the revenue management system that helps to improve the price-demand estimates and control a particular business mix and pricing strategy. Thus, it can helps to determine which competitive properties are relevant to the customer’s that are willing to pay. Second, Reputation Management is very important for running travel industry too. Big data can help them to manage the functioning to get smooth, starting from billing and payment. These smooth services could be satisfied by customers and they are ready to spend so much money for it. Third, Reputation Management that big data can help companies to use right strategic approach in their marketing efforts, targeting the right people in the right way; especially, it can help businesses to identify the trends that exist among the customers, where the similarities are, and what the best marketing opportunities are. Following, customer experience is a factor that consider about customer’s loyalty. Big data helps them to decisions about the services that are currently provide, no longer to provide, or what are the services which they want to introduce, and the new technology to invest in. Market research that Big data can help them make more evidence-driven decisions in the ability of future demand with more accurately optimize pricing strategies, target marketing more precisely and improve customer experience. Last, targeted marketing is the most important factors in travel industry by understanding the requirements, customer experience and doing market research, the guest experience can be enhanced. Therefore, I really think about these benefits of Big data in travel industry which is the most important part in my country’s economy, this article make me to have more clearly understand in these benefits.