Big Data in The Travel Industry: 7 Ways To Benefit

Big- Data -in -The -Travel -Industry
Big -Data -in -The -Travel -Industry

Tourism is a popular and growing industry in the 21st century. Several factors have played important roles in ensuring its success, especially with key players like Airbnb and TripAdvisor. However, big data in the travel industry has been more than effective, considering how it solves specific problems and delivers customers’ needs. At this point, it is only reasonable to discuss fully how big data in travel and tourism has changed the world. More importantly, in this article, you will find various ways to maximize profits from this data.

What is Big Data in Travel and Tourism?

Big Data is a technology used to determine precise decisions, forecast customer demands, and provide personalized services such as marketing and pricing. It is often integrated with other technologies, such as machine learning and artificial intelligence, making it possible to analyze information without manual assistance. In short, Big Data isn’t an independent technology, as it depends on others for analyzing, processing, and structuring.

So, how is big data being used in the travel industry?

In the travel and tourism industry, Big Data is often used to help business owners discover their customer’s needs to develop strategies to serve them better. It would include identifying factors that would aid the tourist experience using previous trips, such as hotels, locations, and ticket prices.

What are the Types of Big Data Analytics in Travel and Tourism?

Big data analytics in tourism come in three different types. They include;

●       Descriptive

Travel companies use descriptive analytics to predict events in the future based on current and past analyses. That means it works using real-time and historical data. With this method, it is possible to avoid certain situations and make quick decisions.

●       Prescriptive

Prescriptive analytics also makes some predictions but is often based on simulations. So, as it predicts trips tourists would love, it also gives travel companies the privilege to discover the best approaches to meet customers.

●       Predictive

Predictive analytics is used to predict events based on past trends or patterns using a customer’s data. Travel companies use this method to suggest specific trips that tourists will be interested in while considering locations.

What are the Sources of Big Data in Travel & Tourism?

Now you may wonder how big data and tourism connect, i.e., the sources that provide the data needed. Well, they are:

●       User Generated Data (UGC)

User Generated Data is the easiest source to come by. It is also the cheapest. It gathers data from different sub-sources, such as social media, online questionnaires, and photos.

●       Transaction Data

Transaction Data is another but is mostly provided by web services or operations. It gathers data from web searches, page visits, online bookings, and interests in ads.

●       Device Data

The most expensive data source is Device Data. Even as a user’s device provides it, it costs quite a lot considering factors like geolocation and study time. Nonetheless, it obtains data from GPS, Bluetooth, WiFi, or mobile network roaming.

7 Benefits of Big Data Analytics in Travel and Tourism?

Big Data Analytics in Travel and Tourism
Big Data Analytics in Travel and Tourism

Let’s see the seven benefits of big data in tourism for travel companies below.

1.   Revenue Management

One way travel companies have benefited greatly from Big Data is in revenue management. Using customer data, these companies can now optimize costs, maximize profits, and predict revenues accurately, regardless of the timeframe. Indeed, it gives tourism companies a chance to sell their services to the ideal customer, at the right time, for the best price, using effective channels.

2.   Reputation Management

It is no surprise that with revenue management, tourism companies’ reputations will only be expected to improve. Big Data helps with reputation management, as customers can now drop reviews on various platforms to facilitate the growth of that business. With these reviews, future customers are assured of the company’s services before booking them.

3.   Seasonal Management and Strategic Marketing

Big Data allows for Seasonal Management, a situation that ensures the quick processing of a series of information from the ideal audience to be used for forecasting and marketing.Finding potential customers can be challenging, but this technology helps companies develop strategic approaches for marketing, hence, meeting the right customers.

4.   Improved Customer Experience

Undoubtedly, Big Data has helped businesses improve customer services, which automatically translates to users getting the best experience. It provides a means for travel companies to approach and interact with customers, which is a valuable means of getting data that can be used to improve their experience. That is why data from social media platforms and online reviews are highly prioritized.

In fact, this technology will reveal a series of information about customers. For instance, tourism companies will know the services their users find the most and the least beneficial. Some even go as far as interviewing customers through questionnaires to find out what they think about their services.

5.   Targeted Marketing

One of the problems most businesses have is reaching their target audience and maintaining them. It is a difficult chore. However, Big Data gives the advantage of creating unique marketing strategies to find the ideal customers and ensure they keep using the company’s services.

6.   Market Research

There is bound to be competition in every industry, and once in a while, it is important to conduct market research using some parameters or variables. Big Data ensures that it is possible by compiling and analyzing a series of information from competitors in the business. This market research will, in turn, help the travel company develop strategies to improve its services.

7.   Better Analytics

Generally, the influence of Big Data in the tourism industry has aided better analytics. Now, travel companies can make accurate predictions based on real-time and historical data, trends, or patterns.


The importance of big data in travel and tourism cannot be overemphasized. This article has shown its usefulness in various aspects, especially to customers. Without a doubt, integrating this technology into a tourist business is a smart idea. Luckily, there are various sources to consult to meet tourists’ needs.



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