According to a recent study, it is predicted that 70% of enterprises are expected to implement AI and data analytics over the next year, and the travel industry is no exception. Primarily, this means that data analytics will provide numerous snapshots of seasonal sale trends, bookings, and past travel experiences which will bring vital missing insights for marketers in the travel industry.
Data analytics, also referred to as big data, is about moving from an individual consumer snapshot to a more holistic view of the target market. Big data in the travel industry provides marketers with the logic and reasoning behind the way tricky customers behave. The behavior of travel consumers does not depend only on demographics but on a combination of different experiences and expectations.
Travel industry marketers can leverage on the advantages of big data to guide their strategies to reach a diverse group of travel customers.
Here are three tips for marketers in the travel industry to propel their goals forward and reach big picture goals.
Classify Customers by Type
There can be no one size that fits all in any industry, and the same is true for travel. Travel consumers are looking for personalized experiences. That said, there are a myriad of different expectations that each travel customer looks forward to. This is where predictive analysis comes to the rescue. For example, based on a particular selection of flight, extra baggage and hotel, the system (in a few milliseconds) needs to predict the expectations of the customer and provide a viable and competitive offer to the traveler in real-time. 
By collecting and analyzing data, airlines are personalizing many things, including:
- The food you eat
- Which seat you prefer
- Dates you travel
This analysis helps marketers categorize travel consumers and promote only those products and services they are likely to buy. This is the need of the hour for every successful transaction with the consumer. Classifying customers by type is vital since consumers have different needs and expectations.
For example, the leisure traveler will be looking for budget-friendly amenities, entertainment, and luxury, while the business traveler needs a comfortable room, convenient dining, and reliable internet access. A single person might just be looking to grab a bite and a comfortable night’s stay, while a family would want a low-cost, child-friendly, clean facility. Using Big Data, marketers can revolutionize the travel industry, since they can now identify the correct services for the right people, bring them in and exceed their expectations.
Provide Data-Backed Recommendations
Data analytics doesn’t just help in predicting customer habits and behavior. For marketers, it goes a step further by providing insights into the reasoning and logic behind such behavior. By understanding the catalyst behind the consumer’s behavior, marketers can anticipate travelers’ needs well in advance and market to them tailored programs to meet their specific objectives. For this marketers need to step outside the box of just internally collected data but also analyze external factors such as sales patterns for related hospitality businesses and viewpoints of competitors to understand where the market is headed.
Data science in the travel industry is an increasingly popular study to both predict and harness customers needs and expectations. Similar to “Featured Recommendations” on Amazon or Netflix, online travel booking providers offer related services for what the consumer is looking for on the search engines. For example, if a traveler is looking for flights to Chicago they will also be offered accommodation options for their trip. These types of data-powered recommendations could also be for car rental deals, alternative routes, stopovers and even local attractions.
Leverage AI-Based Push Notifications
The travel industry has always taken the first step in adopting technology as well as adapting to the changing requirements of the traveler. We have seen a prompt migration from merely having an online presence, to the mobile era, and then to all the hype on social media.
We are now at the pinnacle of the next era – that of Artificial Intelligence (AI) in the travel industry. Many travel websites have been experimenting with AI over the last few years, and are finally at the point where AI-based solutions such as voice-activated platforms, real-time messaging platforms, and personalized automation will be able to predict exactly what the travel consumer wants.
Companies like Uber, Hopper, Lyft, and Expedia are already using AI-based push notifications to upsell and entice travel customers with timely recommendations.
Data analytics is not all quantitative. There is qualitative data that relies on customer feedback. This is obtained from online feedback, social media, travel sites, and customer ratings. This conglomerated data can shed light on the traits that are important to the customer, how customer behavior changes and what drives the customer to select a particular service over another.
