When it comes to keeping up with changing customer demands and surprising global events, the travel industry tops many other businesses. At any time, travel agencies, hotels, restaurants, and other key stakeholders are faced with massive, non-stop streams of data. To some level, they can leverage the data to understand customer behavior and make vital decisions about delivering products and services.
But, still, so much of this untapped potential turns to lost opportunity as these businesses simply have far more than they can digest with their current setup. So, they simply need a vessel to slice and dice this big data into actionable insights. This is where the role of data analytics consulting comes in.
Data Analytics in Travel and Tourism
Data analytics is simply a tool that helps businesses trace pieces of small and big data from booking trends, destinations, flight plans, traveler demographics, and other points. Then, the data is carefully stored and organized in a sensible way for companies so they can predict upcoming opportunities or threats and come up with a custom-made solution to optimize their products.
Such volumes of raw data come through internal sources like the company website/app or a passenger services system (PSS) and external sources like social media, third-party travel websites, or even news agencies. But, no matter the source, the data revolves around these themes:
⦁ Customer demographics
⦁ Flight plans
⦁ Travel destinations
⦁ Meals
⦁ Transit hubs
⦁ Booking trends
⦁ Customer reviews
Specific Benefits of Data Analytics in the Travel Sector
So, it’s safe to say that big data analytics is a complex process. But, how does the outcome manifest in real life? Why should any travel agency, hotel, or airline use it?
Maximizing Profits
When it comes to the travel sector, maximizing profits is all about offering the best service at the right time and through the right channel. For this, big data analysis is a must-have.
Any business can predict demand and adjust pricing strategies by examining data on prices, cancellations, bookings, seasonal holidays, and local events. That gives hotels and airlines enough leeway to adjust their rates and routes at different timeframes. Car rental agencies can also predict future demand by season/location and adjust inventory levels. It’s a win-win trade for both sides.
Personalized over Segmentation
Customer segmentation is creating a general traveler persona based on customer demographics, behavior, needs, and wants.
But, personalization via data analytics covers every possible touchpoint with the customer. Hotels cater to their guests’ individual tastes and needs by keeping track of their preferences and expectations.
Travel agencies can customize offers and deals on a much finer level. In other words, personalization leaves out so much of the guesswork that you have with segmentation, and it takes customer satisfaction to new heights.
Getting the Most Out of Marketing
In the travel and tourism industry, a lot of marketing hinges on understanding the market and its trends, consumer needs, competitors’ moves, and possibilities.
Through customized offers, promotions, and content, businesses can present themselves as the best solution to specific traveler needs. That way, customers chase the travel company, and it creates a lot of opportunities for upselling or cross-selling products.
Navigating Threats
Many things might go wrong in the travel sector; recent examples include worldwide pandemics, political instability, and natural catastrophes.
Travel firms can continuously monitor these factors and effectively prepare and respond to these threats. If a natural catastrophe is on the horizon, they are prepared to rebook clients to less dangerous areas, or they can adapt their services to reflect new regulations.
Elevating the Brand Image
To stand out among the competitors, companies need to know what works and what needs to improve. To do so, you can tap into the data pool of customer interactions, online reviews, and social media comments.
Then, using sentimental analysis helps identify overall sentiments and complaints about the brand that may hurt the bottom line or the brand image. By analyzing this data, you may fine-tune employee training, optimize pricing strategy, and offer additional services to guarantee positive reviews in the future.
Maximum Security
Data analytics in tourism allows businesses to discover possible security risks and breaches by examining important data, such as surveillance videos, login records, and visitor information. That way, you can tighten security processes, respond quickly, and keep everyone on staff and in the building safe.
Big data analytics can also spot questionable activities. Peculiar behavior, suspicious transactions, and defects in the network may all be signs of fraud. Besides safety, this can save companies from lasting blows to their reputation and bottom line.
Bottom Line
Data is a gold mine for any business in this sector and data analytics in the travel industry helps them dig out as much as they can. But, the infrastructure and expertise for this are far beyond an in-house project.
You need a team that can make sense of industry-specific insights and provide tailored analytics solutions that skyrocket your sales and conversions. This is what we do at GrowExx, and we can do it for you as well. Our data scientists are a phone call away.