4 Benefits of Leveraging Big Data In the Tourism and Travel Industry
Sun, April 18, 2021

4 Benefits of Leveraging Big Data In the Tourism and Travel Industry

It is important for companies to leverage big data to achieve success in the industry. / Photo by: Elnur Amikishiyev via 123rf


As the world becomes more advanced, various industries are depending upon “some kind of information,” noted Rahul Rajput of Thrive Global, an American behavior change technology and media provider. Industries prioritize aggregating accurate information. Service industries such as travel and tourism have an urgent need for information compared to other sectors, as they heavily rely on them. 

Big data has introduced innovative changes to the business industry, research, studies, etc. For example, a travel and tourism firm collects information through big data, processing them through travel portal development, and leverages them in their day-to-day operations. The industry is getting more conscious of the data they gather from different sources. This serves as a success-oriented asset for the travel and tourism industry. Hence, it is important for companies to leverage big data to achieve success in the industry. 

Big Data Analytics In Travel and Tourism 

1. Personalized Customer Experience

Research platform Future Market Insights wrote on the Big Data Analytics in Tourism Overview and Trendy Analysis that online tools have changed the travel and tourism industry over the last few years. In the past, collating information involved massive processes, making it tough for travel and tourism firms to create accurate tourist profiles. Nowadays, it is important for businesses to understand traveler trends to provide exciting travel experiences to tourists. 

Big data can help analyze trends by collecting information from various consumer centers and formulating a specific marketing strategy for the firm’s target audience. Big data technologies like Hadoop and cloud-based analytics provide adequate storage space and presents information in a structured manner. 

As stated by CIO Review, an IT print magazine, big data can help categorize customers according to their spending habits, purchasing power, and expectations. Through market research, it can aid tourism firms in understanding customer demand, augmenting guest experience, and helping companies gain loyal customers. 

This process enables businesses in the travel and tourism industry to make quick decisions due to the ever-evolving customer demand. Moreover, big data applications help companies introduce new products due to changes in the needs of travelers. It will also provide firms with predictive modeling analysis and key insights. 

On the other hand, big data can make bookings easy for travelers. If paired with large databases, companies can offer the best and most affordable hotel or flight booking and the like to their customers. 


Big data technologies like Hadoop and cloud-based analytics provide adequate storage space and presents information in a structured manner.  / Photo by: everythingpossible via 123rf


2. Understand the Industry Market

For example, leveraging big data enables airline operators to understand passenger behavior, choice of travel, and the industry’s performance. Operators can maximize their income opportunities and offer the best travel experiences to passengers by leveraging big data in their revenue management and strategic pricing. 

Another example would be hotel chains. Hotels employ big data to create personalized packages and offer ad-on services or discount coupons. Interestingly, tourism boards in other countries are tapping into big data applications to analyze tourism flows and uncover more investment opportunities in their own country. 

To illustrate, the Cuban government uses big data to analyze and collate customer reviews and track travel accommodation performance. Alternatively, businesses can tap into big data to identify strengths, weaknesses, and overall reputation of other firms, helping them make “evidence-based decisions” and pinpoint gaps in the market.  

Meanwhile, predictive analysis, which employs statistical algorithms and machine-learning techniques, allows operators to scan and analyze reports in both newspapers and social media feeds to track the latest developments in the travel and tourism industry. This approach is less expensive than using traditional data storage systems.  

3. Reputation Management

For instance, big data has pushed hotels to improve their services with regard to payment and billing. Customers leave reviews about their experiences on travel platforms or social media. As mentioned earlier, these reviews can be collected to help improve the hotel’s training efforts 

4. Strategic Pricing

Prices are one of the deciding factors in traveling, as customers are always on the lookout for services at affordable prices. Big data can search for rival data such as market trends, what an agency’s competitor is offering, and more. By identifying new trends and patterns, operators in the travel and tourism sector can offer new products to customers and negotiate the rates with suppliers. 

Additionally, they can “maximize the revenues of each transaction and uncover hidden market opportunities.” For instance, international hotel chain Starwood Hotels and Resorts integrated big data analytics for dynamic pricing to boost revenues. The hotel combines information like economic factors and local events to “offer accommodation at competitive prices.” Business analytics also assists operators in understanding existing demand for specific brands, allowing them to forecast the supply and demand position. 

Potential Challenges

Big data interprets structured and unstructured data. The latter includes information extracted from websites and social network sites. All information from these sources is based on individual opinion. Interpreting this kind of data and drawing insights from it pose a challenge to the industry. 

We can’t deny the benefits of big data in travel and tourism. From the customer’s perspective, big data can help personalize and improve their experience. As for businesses, they can make accommodation rates and bookings more dynamic by understanding trends and patterns. The industry should invest more in big data analytics, as it will be useful in the long-run.