How big data technology can improve the tourism industry?
With the digital transformation and technological advancement, access to a wealth of information and data has become easily available. In contrast to traditional CRM information, data is now increasingly being collected from blogs, social media posts through the use of smartphones and other digital sources. With the vast amounts of data collected by businesses of all types today, from IT to manufacturing, logistics to healthcare and hospitality, big data has become a priority for many, and this is especially true in the tourism industry. Tourism is a big industry which accounts for up to 10% of world GDP. In addition, this industry is on the rise due to global prosperity and employment. The United Nations World Tourism Organization (WTO) met in Manila, Philippines, for the International Conference on Tourism Statistics. During the conference, a key question was raised about how big data can be used to better manage tourism.
How Big Data Technology can Improve Tourism?
Every country, state, and city has a wealth of information that can transform the tourism industry around the world, but having large amounts of information and drawing practical lessons from that information is a complex process. This is where the importance of big data lies and big data analysis. Big data is generally associated with the opinions, behavior and habits of customers. Big data enables the tourism industry to conduct prediction and behavioral analysis.
Revenue Management
One of the most constructive uses of big data in the tourism industry is related to revenue management. To maximize financial results, the tourism industry needs to be able to sell the right product at the right time to the right customer for the right profit via the right channel and for this big data is very important. Internal data sources such as room income, past occupancy rates, current bookings can be merged with external sources such as on-site event information, flights, etc., this helps with the accuracy of assumptions about demand. Like hotels, by gathering all of this information, they can increase the room rent, increase it when there is more demand, and decrease it when there is less demand.
Reputation Management
Reputation management is closely related to customer feedback. With the advent of the internet, customers can give their opinion on various online platforms such as social media sites, search engines, review websites, etc. before booking. Customers always tend to check and compare these reviews. This data, combined with feedback, can be used to highlight the most notable strengths and weaknesses and see where customers are impressed or disappointed.
Improved Decision-Making
The data collected from the marketing campaigns and the packages offered are of great benefit to the tourism companies in their decision-making. The tourism industry can make informed decisions based on analysis and number-based data. They can identify specific groups of potential customers at each step of the travel planning process. The Big data can even be used to guess which new products might do well in their market.
Customer Experience
The tourism industry has a wide range of customer interactions, and each of these interactions can generate valuable data that can be used to improve the overall customer experience. This data can show which services customers like the most and which they don’t. This data enables companies to make more informed, data-driven decisions about the services they currently offer, the services they no longer need, the services they want to go to market, and the new technology they want to invest in.
Market Research
Market research is the most important aspect for all types of industries. The tourism industry can use big data to get a clear picture of its competitors what they offer, what your business lacks, etc. Big data can help in identifying potential gaps in the market or delivery opportunities in ways that competitors do not, which in turn can lead to higher demand and higher revenues.
