BIG DATA - and its benefits in the travel and tourism industry. Ivan Biocic
The travel industry depends on the data it collects and now has become more efficient since the advent of Big Data and analytics into it. So we can say that data is the new gold. It has transformed the travel industry and is now a part of their daily operations.
Big Data is taking the travel industry in the right direction. It takes care of everything that a traveller expects from the travelling company he is dealing with. From personalized offers to giving suggestions about the places you must visit, it is the perfect companion that a traveller needs in this day and time.
Big Data can make the travelling experience less stressful and more enjoyable.
MARKET RESEARCH
The travel and tourism industry uses big data to analyze information about its main competitors. To get a better understanding of what other businesses are offering to consumers.
Data can be used to showcase the benefits, weaknesses and market position of the competitors.
It includes the ability to anticipate future demand more accurately, optimize pricing strategies, target marketing more precisely and improve customer experience.
Companies can even determine their overall reputation compared to their competitors.
CUSTOMER EXPERIENCE
Customer experience is definitely one of the major points of Big Data benefits. It makes a customer come back, it makes them loyal to your product or service offered.
Businesses in the travel and tourism industry have many interactions with its customers and each of these interactions can provide valuable data, which can be used to improve the overall customer experience.
TARGETED MARKETING
With Data, we can collect any information about users, especially of previous customers. And we can use that data to target certain groups specifically with offers of their interest, related to their previous preferences, budget, age group etc. It is a WIN-WIN situation for both businesses and consumers.
REVENUE MANAGEMENT
Especially now, in the last few years, during the times of the Covid-19 pandemic, it was very challenging for many businesses based in the travel and tourism industry to even continue operating. With all the restrictions, Covid certs etc. travel and tourism industry experience a big decline. Revenue management certainly helped businesses with it at least to some point.
Both the internal and external data helps to get more accurate data. It also assists in predicting future demand and anticipating it in advance.
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 gives an edge over the competitors and helps the marketer to make a niche for themselves.
Revenue management helps in incorporating the analytics and determining which competitive properties are 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.
Really liked the image you used, not only is it attractive it is also informative. Customer experience with an online travel company is really intriguing. Your online store is your visitors first impression of your brand and also dictates whether your customer will return. Analytics helps show you if people leave after a certain amount of time and whether they stay online and visit other pages allowing you the marketer understanding what is popular on your online travel store and what is less popular allowing your team to improve the items/pages that are less popular. You are so right that customer experience is fundamental to any online business. I really enjoyed reading about revenue management, because revenue is what any business comes down to and to have a tool that can assist converting sales and track competitor performance is a huge advantage to have online company. Great information piece Ivan. Tks Diane
ReplyDeleteIvan, the notion that a picture is worth a thousand words is certainly true by looking at the image you have come up with in your blog. It tells the whole story without even going into the detail of the blog. In life there are few occasions where there is win-win out come for all the stakeholders, Big Data is certainly helping all parties to win and win big. As your blog outlines it a win for the customer has they get information and offers that interest them and on the other side travel business target what they want to focus on. This helps improve customer experience and for businesses they could improve their reach better able to target their audience and improve the bottom line. All in all a balanced blog Ivan, Great work. Comment By Sultan Nazir
ReplyDeleteSuper work Ivan! Really concise blog post that really captures the innovation of big data on the travel industry and in the modern day era where everything is immediate and customer demand is as such.
ReplyDeleteThe approach used by businesses nowadays and consumer demand has to be a more customized experience with little stress as possible on their journey. It is cleverly written and showcases brilliantly the challenges to business through Covid times and captured how big data analytics play an integral part to any business strategy.
It's true data is the new gold and like in previous times we went through the industrial revolution, we are now in the fourth revolution which is comprised mainly of data so businesses need to act now or lose out to their competitors.
Rory
Hi Ivan, I enjoyed reading your post as it includes information most important for starting a business and improving an existing one in travel industry.
ReplyDeleteThe information about market research was very useful, that with the help of big data it is possible to analyze competitors and being able to anticipate future demand more accurately. Also I found for myself extremely interesting the information about revenue management and I totally agree with you that this analysis would be very important for travel industry especially during the times of the Covid-19 pandemic when companies experience a big decline.
Interesting and informative blog, thank you! Ksenija Karpezo