The manifestation of big data in the era of intelligent tourism is promoting actionable insights to boost the travel industry. The travel industry thrives on the insights on the changing customer behaviors, travel preferences, schedulings, and increasing digital user interface (through mobile apps and web applications). By using Big Data In Travel, 20% of the industry is becoming bigger and stronger by manifesting the changes and the rest 80% are in loss due to invalid inputs.
According to the UN global tourism report, $432 billion is generated from tourism and travel, with an average 7% annual growth in 2018. 50% of US and UK employees who are freelancers and 10% of the rest who are YouTubers are expected to travel a lot. It is predicted in the near future that other countries will replicate the same. The increasing travel time is generating potential revenues for individuals in the industry. The generation of millennials are seeking more pleasure in spending out for experiences rather than for tangible goods, 67% of them travel often and 85% are motivated/inspired by travel blogs & vlogs in social media. The time changing mindset of the younger generation is rising the opportunity bar for travel companies, but at the same time, these companies are facing obstacles, especially in satisfying the youth during travel-time.
Concerns of traditional Travel & Tourism Industry
The biggest concern in the traditional travel industry is the ultimate customer experience and satisfaction, the mishaps during real-time travel, overcrowded commutation, long waiting hours, and unpredictable stress during journey hours, disturbing physical and mental pleasure of journey purpose. These gradually decrease a company’s growth by losing potential travelers.
Before the introduction of online travel booking system, the travel agents/ agencies had every detail about their customers who often use their service. But the enhancing technology has increased the convenience level of customer and difficulty level for travel companies in tracking and tracing customer data. Leveraging traditional and statistical models had a mild impact on addressing customer needs but it had its limitations. Every travel business collecting data from the chain of service providers from e-bookings or over the counter bookings or check-outs or end of the tours of every individual customer to pull valuable insights for personalized customer experiences. The big data analytics can measure the accurate inherent customer needs and expectations from these data and provide personalized services or offers for individual customers to give the best travel experience.
Big data transforming traditional travel operations
Big data analytics can harness large volumes of customer data to provide actionable insights according to industry requirements. Harnessing the customer data provides an advantage over other players in the same industry by making the right decisions based on accurate insights. Big data analytical tools like predictive analytics, prescriptive analytics, etc are disrupting the travel retail by providing the following-
1. Enhanced user experience
User experience, which is becoming more important. With a significant increase in online apps and web-based applications, 85% of decisions depend on the website activities. Predictive analytical tools can measure customer needs, preferences, and travel habits based on the historical travel data. The forecasted insights help the online apps and websites provide personalized user interface for every individual.
2. Predictive analytics for forecasting
Price fluctuations, surge charges, travel time, climatic conditions, and amenities in traveled locations are the biggest concerns for any first-time traveler. The predictive analytics can forecast and provide accurate results in less time to address customer queries without switching to other apps or websites for the required information.
3. Advanced marketing techniques
By predicting the fleet customer ratio, the travel company can re-design, customize marketing or advertising campaigns to attract more tourists, reduce the internal cost of investments. And travel agencies can arrange a special mode of transportation for a safe and comfortable journey time.
4. Optimized aquasition strategies
By measuring customer footprints in the social media, micro-movements, and recent search bar menu, the company can offer customized coupons for their potential clients who are often travelers.
With customized offers and coupons for a different set of customers for their desired locations, the travel companies can decrease the rate of attrition by increasing the customer base. Predicting the availability of journey details, accommodation, commuting facilities, and change in climatic conditions, the travel companies can offer real-time data access to their customers to plan their dream trip for a better experience.
The usage of analytics in the travel industry is at its first phase. The potential of big data can unleash more changes and advancements in addressing challenges that held companies back from decades. The data-driven knowledge provides an advantage in understanding customers’ long term value and classifying customers into different fragments to drive actionable insights. Integrating big data with existing customer data and loyalty systems can provide a 360-degree customer view to understand credit risk, demographics, life events, and social media interactions of every customer in a particular segment- to drive business growth.