Big data is increasingly important for travel and tourism companies as the sheer amount of data collected needs to be properly analysed to make informed decisions.
This thematic research report takes an in-depth look at the theme of big data and the impact it has on the industry, its players, and also on tourists. The report covers the main themes occurring in the industry, real-life case studies a unique thematic analysis of the impact on the industry including recommendations for travel & tourism companies. Additionally, we highlight the public and private companies involved with big data.
“The travel and tourism industry can be made more profitable and efficient with big data analytics. Billions of trips are taken each year and each of these creates multiple data points that are easily recorded through ticket purchases, hotel bookings, and internet searches. Companies are investing in the technology to different extents and those that are only doing so superficially will likely fall behind those that fully understand the power of big data analysis.” – Laura Beaton
With the huge amount of information collected about travelers around the world, companies are able to make use of targeted marketing to attract the right customers at the right time.
The misuse and mishandling of personal data is a hot topic, thanks in large part to the scandal involving Facebook and Cambridge Analytica. Increased regulation around the storage and processing of data is highly likely – indeed, it is already underway in Europe in the form of the General Data Protection Regulation (GDPR), which came into force in May 2018.
The full-scale mainstream adoption of 5G, which is still a few years away, has the potential to increase data consumption globally. 5G is expected to enable faster speeds (up to 20 gigabits per second (Gbps) per user) and connect around one million devices per square kilometer (approximately 10 times more than with 4G).
So many aspects of booking can be affected by big data analytics – marketing, pricing, and seat or hotel room allocation are just some of these. According to the author 2019 Q3 survey, online travel agents (OTAs) are the most used avenue for booking travel.
Big data is continuously changing the way tourism brands price and target their customers, by providing a more tailored and ultimately better product and service offerings based on the available information. This translates to dynamic pricing (adjusting ticket and room prices based on demand) to ensure firstly that prices remain competitive, and secondly to reduce the likelihood of lost revenue through a lack of bookings.
- This report provides an overview of the impact of big data analytics on tourism and clearly defines the various faces of the theme.
- It identifies the main trends related to the theme, classified into six categories: travel & tourism trends; data trends; technology trends; data centre trends; macroeconomic trends; and regulatory trends.
- This report identifies several case studies to illustrate how big data impacts the industry, including examples from British Airways & Hilton Hotels & Resorts. Additionally, it provides an insight into what companies are doing to increase their understanding of the technology.
- Our unique thematic methodology provides an in-depth analysis of the impact of the theme on the travel & tourism industry, underlining several ways that companies can use big data to improve their operations.
- We highlight public and private companies involved with big data, including Airbnb and Hopper.
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