5 Use Cases of Data Analytics in the Travel Industry The travel industry is one of the largest in the world. Globally, the direct contribution of this industry to GDP was approximately 2.9 trillion U.S. dollars in 2019, according to Statista. For many countries and states, travel and tourism is a major contributor to their GDP. The Travel & Tourism Competitiveness Report, 2017 by the World Economic Forum claims that the travel industry generates one out of ten jobs on the planet. Notably, the role of data analytics in this widely embraced domain is inseparable. It can help you make the best of this huge and promising market. Let’s learn five use cases of data analytics in the travel industry.
1. Rewarding Air Travelers Data analytics helps carriers reward their loyal customers by offering ticket upgrade services for free or by charging nominal fees. Analytics keeps a watch on the inventory and detects any vacation seat caused by cancellation or non-booking of the business or first-class ticket. The algorithms ensure there is no cannibalization of regular revenues with a parameter of randomization.
2. Optimizing Service & Revenue Travel data analytics enables online travel agencies to do concurrent optimization for travelers and travel suppliers including airlines, and car rental providers. The approach concentrates on the overall value for the parties involved rather than simply on a specific product or service. The goal is to convert revenues from a single transaction model to a multi transaction subscription model.
3. Setting Dynamic Pricing Dynamic pricing is a common feature across all travel suppliers, from airlines and rails to road transportation. Data analytics in travel industry makes it easy for businesses to predict fares based on the expected demand. The data analysis tools make the prediction by reading the demand and supply over the past times. It helps them maximize the profit and at the same time maintain the competitiveness in the industry.
4. Assessing Risk and Safety COVID-19 has witnessed the best usage of data analytics in travel industry to advise travelers to manage their travel plans. For example, IATA has a world-map on its website that informs travelers about the travel restrictions across different territories. Customs, airports, airlines, and metro rails in many places are using data analytics to identify people with COVID-19 or similar symptoms.
5. Climate and Weather Forecasting Climate and weather are important factors in the travel industry. Thankfully, data analytics in travel help regulators, operators, and OTAs operate services with optimum safety and avoid risks. It helps travelers to smartly plan their travels and have a safe and pleasant experience. If you are still wondering if data analytics is only for IT and engineering sectors, you need to rethink! It has the potential to transform and optimize operations of travel suppliers, OTAs and other constituents. Learning use cases of data analytics in travel from IGT Solutions are worthwhile in this context. Hope you are ready to make the best of data science to augment your travel business operations and deliver the best experience to your customers. IGT Solutions is always with you in your endeavors.