Big Data & the Travel Industry

Big data has the potential to transform how travel companies deliver services to travellers, according to the latest study by Amadeus.

Big data is arguably the biggest opportunity in a generation for travel businesses to embrace the changing structure of data and maximize its use. It offers the potential for a vast shift for all travel companies, empowering them to enhance both the business and experience of travel. As with any generational shift in technology, however, the opportunities arrive hand-in-hand with the potential for significant disruption, which naturally bring many challenges – competitive and creative – for the travel industry to consider.

Amadeus Big Data Report
Amadeus Big Data Report

“At the Big Data Crossroads: turning towards a smarter travel experience”, an independent study just published by Amadeus, explores the impact of large volume, unstructured data known as big data on the global travel industry.

The study finds that travel companies are at a crucial big data crossroads: big data has a vital role to play in delivering a more efficient and tailored travel experience with benefits to both travel companies and travelers alike. However, its potential is still confined to early adopters in the travel sector, and it calls for more widespread consideration across the industry about how new approaches to big data can yield significant opportunities.

Big Data- means for Travel
http://www.amadeus.com

Here is an overview of the major points:

Big data offers significant benefits for all travel companies
The benefits of big data for travel providers and travelers are explored, including:
• Better decision support
• New products and services
• Better customer relationships
• Cheaper, faster data processing

Big data in the travel industry is currently being driven by early adopters

The diverse ways in which big data is being used by early adopters in the travel industry are investigated, with a focus on:
• Optimizing revenue management
• Customizing travel distribution
• Transforming corporate travel
• Enhancing internal operations
• Boosting financial performance

Challenges need to be overcome so the industry can realize the potential of big data

The study acknowledges the technical and operational challenges associated with big data adoption in the industry, namely:
• Creating an integrated data source
• Working in a hybrid technological environment
• Overcoming the data skills shortage (an issue in all industries adopting big data)
• Maintaining competitive advantage

Finally, here is a series of recommendations for travel companies preparing to embrace big data:

  • Research big data
  • Strategize about big data 
  • Don’t just explore big data technology – look at the changes you will need to make to business and operational    processes too
  • Start assembling big data skills 
  • Work with partners

Find the Full Report here

View this and all the latest Tourism & Travel Trends and Developments in Trendspotting 2013.

2 thoughts on “Big Data & the Travel Industry

  1. Are there any reasons we should get excited about this? I have read the reporrt and it just means that the travel and tourism industry will find new ways to develop profiles and gouge people. This will never help destinations nor the traveler.

    If the industry is serious about big data (other than gouging the traveler)…maybe they should collect more on their social / environmental impact and what they will do to mitigate that impact.

    I hope that some politician will wake up soon and put in place some laws that will stop the industry to collect and sell this data.

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