With digital transformation and technology evolution, access to an enormous pile of data also as data has become easily available. Owing to the large amounts of knowledge that are now collected by businesses of all types from IT, manufacturing, logistics to healthcare and hospitality big data has become a top priority for several , and this is often very true within the tourism industry.
Tourism may be a big industry that creates up to 10% of world GDP. Also, this industry is on the increase due 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.
How Big Data Technology can Improve Tourism?
Every country, every state, and each city features a huge wealth of data which will modify the tourism industry across the world . But having huge sets of data and extracting actionable insights from that information may be a complex process. Here lies the importance of massive data and large data analytics. Big data is usually related to customer reviews, behavior, and habits. Big data enables the tourism industry to hold out predictive and behavioral analyses.
One of the foremost constructive uses of massive data within the tourism industry is linked to revenue management. To maximize financial outcomes, the tourism industry must be ready to sell the proper product, to the proper customer, at the proper moment, for the proper price, through the right channel, and for this big data is very crucial.
Internal sources of knowledge like room revenue, past occupancy rates, current bookings are often merged with the external source like local events information, flights, etc, this may help in additional precise assumptions about the demand. Like for hotels, by gathering all this information they will increase the space rent increase it when demand is higher and reduce it when demand is lower.
Reputation management is highly associated with customer reviews. With the arrival of the web , customers can give their feedback on different online platforms like social media sites, search engines, review websites, etc. before booking. Customers always tend to see these reviews and compare them with other tourism companies. This data, merged with feedback are often wont to highlight the foremost notable strengths and weaknesses, and to ascertain where customers are impressed or disappointed.
Data collected from marketing campaigns and packages offered highly benefits the tourism companies within the decision-making process. The tourism industry can make informed decisions supported analytics and number-driven data. They can pinpoint targeted groups of potential customers at every step within the tour planning process. Big data can even be wont to assume which new products might work well in their market.
The tourism industry features a vast display of interactions with customers, and every of those interactions can yield valuable data, which may be wont to enhance the general customer experience. This data can divulge which services customers just like the most, which they are doing not like in the least . 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 therefore the new technology they select to take a position in.
Market research is that the most vital aspect for all kinds of industries. The tourism industry can make use of massive data to get a transparent understanding of their competitors like what they’re offering, what’s lacking in their company etc.
Big data can help in identifying potential gaps within the market, or opportunities to deliver in ways in which competitors are failing to. This can, in turn, end in greater demand and better revenue.