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.