Is Big Data the Biggest Development in Technology for Travel and Tourism?
There has been major technological development recently in the travel and tourism industry.
Today, companies rely on countless databases to research and understand customer behavior. For a long time, this had to be done manually, if at all. Companies would have to identify relevant info, collect it, and then interpret it. Now, Big Data has made it possible to automate many aspects of this process. This is perhaps the biggest technological advance in the field since the world wide web.
If the travel industry can identify and target customer behavior patterns, it can efficiently capitalize on this data. Target marketing, for instance, is directly linked to understanding and classifying customer behavior. Why is this so critical? Airlines and other travel entities heavily rely on gaining customer loyalty and continuously attracting new clients. Big Data is just one way to make this process much easier.
Given the limitless amount of data available today, we have barely scratched the surface of big data tech. Big Data has so much potential that, if used wisely, its impact on the travel industry could be as big as the internet’s. This is why travel companies, both big and small, need to implement automation of Big Data into their market strategies.
How technology development in travel and tourism is Transforming the Industry:
As mentioned above, the two keys to success in the travel industry are maintaining customer loyalty and attracting new customers. In this marketplace where consumers have unlimited choices, it’s more important than ever to appeal to both their emotions and their pockets. Big Data is allowing companies to do exactly this. Travel analytics teams can take customer data and apply it to improve customer marketing and promotion.
Customization and Personalization:
There are many types of businesses involved in the travel industry. These businesses include car rental companies, airlines, hotels, tour operators, cruise lines and many others. In order to streamline travel for customers, the gaps between these services and the information they possess must be filled in. Big data allows the industry to understand customer preferences across different types of travel.
Not only does it give insight into group behavior, but it also provides specific information for each consumer. This allows companies to offer personalized and customized services to their clients. It lets them create offers and promotions that are attractive to their target users. For example, a Las Vegas casino can promote a nightclub or concert to its younger users and table games to older demographics. Information helps companies segment and target their markets.
Unique Selling Point:
Companies need to know their high and low points to stay competitive. This means knowing what makes them special but also what they lack. This information can be collected using Big Data. This data helps companies improve on a host of factors, including cost-effectiveness, product design, and marketing strategy. It also helps them spin and market their brand to consumers.
Improving Business Operations:
Often overlooked, but no less important, are operations. Data can always help understand and improve operations. Analytics are helping researchers understand efficient ways of checking travellers in and out of hotels or airlines and speeding up certain processes in the travel world.
Real-time Travel assistance:
Cell phones are able to capture Big Data. This information then gives companies in the travel industry real-time data on customers’ locations. This can help them provide their customers with helpful recommendations and safety tips while they travel. It can also alert customers to special deals and promotions while vacationing.
Identifying your customers’ future travel goals and plans is critical, and big data can assist with obtaining this information. It allows travel companies to proactively offer their customers services and packages in the exact places a customer wants to go. Essentially, this tech allows travel agents and other businesses to customize their offers intelligently. Once a destination is identified, marketing gets a lot easier, as you are chasing a “hot lead” instead of a cold one.
Not only does this information allow for a better customer experience, it also helps the company save money. Rather than throwing money at sales funnels, companies can identify with accuracy the group of customers to best promote to with a coupon or special promotion. They don’t have to waste time and money reaching out to prospects who are not statistically likely to be interested.
One important caveat regarding Big Data: Customers are suspicious of it. They sometimes feel it is an invasion of their privacy or are intimidated by its scope. It is therefore vitally important that the information be used with the best of intentions and not in a way that will harass or alienate a potential customer.