| What big data is being collected? | What are the common big data collection methods? | How is big data collected? | How is big data used in the business environment? |
| Network data collected online including social media, information and technology networks, internet, mobile networks. Real time data from streaming media, e.g. YouTube, Netflix. Transactional data from online purchases. Geographic data of people, vehicles, buildings, natural reserves. Natural language data from voice searches made on different devices accessing the internet. Time series data such as weather, mortality rates. Linked data from web technologies to enable connections between databases. | Online marketing analytics from customer information provided online, such as personal details, purchasing habits. Social media activity through video, audio, images, texts, etc. Big data tools are used to process data usefully. Loyalty programmes/ cards to build brand loyalty and learn customer habits/ preferences. Satellite imagery allows companies to continuously update information on long distances. Gameplay is a popular engagement strategy that can be incentivised to build loyalty. | Asking for it, for instance when customers sign up for an account to make a purchase. Cookies and web beacons to monitor what pages are visited and when, to help personalise web experiences. Email tracking allows detection when an email is opened to learn users’ behavioural patterns and provide personalised advertising. | Provide better customer service to gain insights into customer behaviour, habits and preferences, so as to launch effective marketing campaigns, build brand loyalty and improve social media and online presence. Turn data into revenue by selling big data (not customer data but access to the customers). Enhanced security, particularly for finance companies, to reduce the risk of identity theft and cyberattacks. |
Source: Computool
Once collected, big data must be analysed before it can be used, and this requires sophisticated technological tools such as Hadoop, a framework for storing and analysing big data. Big data analytics companies include Cloudera (used by TUI) and Datahut.
You can read more about how TUI, one of Europe’s largest travel companies, uses big data analysis in its business model in this article, Big Data at TUI. Other European tour operators will be keen to know that you understand the importance of gathering customer data to inform your business and provide the services they need. To do business with them in the long term, it is important that you develop travel products that match the needs of their current and potential customers.
As a tourism provider, understanding your customers, what they like to do, where they choose to go and how much they are prepared to spend will give you the information you need to respond to their needs effectively. You can then make informed planning decisions and develop targeted marketing campaigns to offer packages/services tailored to your visitors’ interests. It can also help you decide the best markets to target.
Establish a CRM system
CRM systems help you manage information you gather about customers and potential customers through interactions with them, such as marketing, sales and customer service interactions, in order to build your business. CRM is key for SMEs to enable them to target and develop their travel products appropriately. You must have some form of CRM system in place to compete effectively.
Companies that offer CRM technologies include the global market leader, Salesforce, which also features products suitable for small businesses and for the tourism industry. Specialist CRM providers for tourism businesses include Moonstride, which has three packages for tourism businesses of all sizes. The platform helps to simplify and automate business, including in terms of enquires, quotations, itinerary builders, notifications, managing bookings, customer profiling and reporting.
Tip:
- Download and read this guide, The Ultimate CRM Guide for Tour Operators and Travel Agents, by travel software specialist Tourwriter. You will need to sign up to download a copy – the company collects big data!
Perform website and social media analytics
Website analytics
Your website is the first place where you should gather and analyse data yourself. Google has a number of useful tools that are free to use:
- Google Analytics tracks and reports traffic to your website. It is free to use and provides information such as where your website users are based, which pages they are looking at, how long they stay on your website, what type of device they are using, and much more. You can also analyse social media statistics, which you can access through your social media accounts.
- Google Trends is a search trends feature that allows you to analyse and compare popular search terms and trends. It is free to use. You can also apply filters such as location, dates and categories. Google also has Google Trends Lessons that will help you use the feature effectively. Read this blog, How to use Google Trends to gain a competitive edge, and for tips on using it to help your business.
- Google Data studio is another free tool that will help you turn your data into useable content that is informative, easy to share and read and can be turned into a customisable dashboard. To find out how it works, read this post: Google’s Data Studio Help.
Social media metrics
For each social media channel you manage, you can use the built-in tools in each platform to analyse performance.
- Facebook Audience Insights – to see how people engage with your Facebook page, understand your audience and track your Facebook advertising performance. Read this blog, 6 Steps to Conduct Deep Facebook Analysis..
- Twitter Analytics – to understand the performance of your paid and organic posts.
- Instagram Insights – to learn more about overall trends across your followers and how your content performs with your audience.
There are also some companies that will manage and analyse all your social media marketing activities for you. Examples include Hootsuite and Sprout Social. They also provide lots of useful information about social media marketing online.
Tip:
- Explore the CBI study on How to forecast tourism demand with Google Trends & Data Studiofor more information on using those tools effectively. The study also includes two video tutorials.
Conduct market research using online sources to build knowledge
Tourism associations, technology and software companies and market research organisations often produce research reports and other resources that provide insights based on big data collection or primary research they have paid to conduct. They often spend lots of money on research, some of which they publish for free, so they may encourage you to sign up to their services.
To help you keep on top of emerging trends and insights into the tourism sector, create a directory of resources that you should consult regularly. The table below lists some that are widely used across the sector. You should consider the following groups of sources:
- International organisations and major tourism association resources – these are usually membership organisations that spend lots of money on research which is generally free for members. These organisations are also highly informed experts in the tourism industry and produce many free insights and articles about a wide variety of topics. It is worth checking out which organisations have an email newsletter you can subscribe to.
- Market research companies – there are many companies on the market, which usually have different areas of specialist expertise ranging from consumer to business research, statistics, markets, trends and insights.
- Specialists in market research, statistics and technology in the travel industry – these are businesses that specialise in services for the travel industry and adding value to these services; they often commission research which they provide for free.
- Research and insights from the travel industry – usually generated by national or regional tourist boards and/or associations. Typical information might include tourism statistics, inbound tourism insights, news reports, new developments and so on.
You can explore examples of each group in the following tables.
Online Resources – International Organisations and Major Tourism Association Resources
International Organisations and Major Tourism Association Resources | |
Organisation | Details |
| ATTA publishes tourism industry research and provides global news updates regularly. Some research is offered free; alternatively, you can join as a tour operator member and have access to more detailed research. | |
| Provides research and resources that are focused on sustainability and social responsibility in tourism. | |
| Publishes research and economic reports (updated twice a year) for the global air travel industry. | |
Organisation for Economic Co-operation and Development Library (OECD) | Provides statistics and information for OECD member countries on a range of economic sectors including tourism. The OECD Economic Outlook is updated twice a year. |
| The UN agency responsible for the promotion of responsible, sustainable and universally accessible tourism. The eLibrary includes more than 1,400 electronic publications and 1,700 tourism data sets on domestic, inbound and outbound tourism for more than 200 countries, which are regularly updated. Many are free to access. Other features on its website include the Tourism Dashboard and the COVID-19 Dashboard. | |
| Produces economic reports, including the annual Travel and Tourism Competitiveness Report (last published in 2019), which measures factors and policies of 140 economies that enable sustainable tourism development. | |
Conducts detailed research to provide consistent, reliable and comparable data and forecasts to assess the contribution of travel and tourism to national economic activity. Published as Economic Impact Reports by country, issued annually. WTTC has also developed the Safe Travels Protocols and Stamp to support safe recovery of the tourism industry. |
Source: Acorn Tourism Consulting
Online Resources – Market Research Company Resources
| Market Research Company Resources | |
| Organisation | Details |
| CBI Tourism Market Research | Focus on supporting SMEs to attract customers in the European market. Publishes a wide range of studies focusing on niche markets and segments, along with practical guides to help do business with European tourism professionals. |
| Destinations International | World’s largest resource for destination organisations, to inform and educate members to drive economic impact, employment and sustainability. DestinationNEXT Futures Study identifies trends and opportunities that will shape the future of the industry and is published every two years. |
| Euromonitor | An independent provider of strategic market research, including tourism. Individual destination reports must be purchased, but several reports are published for free, including Top 10 Global Consumer Trends 2021. |
| European Travel Commission (ETC) | The ETC monitors sentiment for tourism, trends and prospects, European tourism trends, COVID-19 recovery, European travel portfolio analysis. |
| ForwardKeys | The global reference for business intelligence, tourism and travel trends. Publishes a range of travel insights for free. Paid for services include datasets, destination data and traveller statistics. |
| GWI | GWI is a market research company that publishes a range of reports and insights into consumer groups and habits, including market snapshots, trend reports and infographics. |
| Hootsuite | Social media management platform that publishes hundreds of free resources. |
| McKinsey & Company | Conducts wide-ranging research and publishes insights on travel, technology, logistics, infrastructure and many other industries. Articles and podcasts on trends are also available free. |
| PhocusWire | Publishes extensive daily news for all sectors of the travel industry over a wide range of topics, powered by PhocusWright, a travel research authority. |
| Sprout Social | Social media management platform that publishes many self-help guides. |
| Statista | Statistics, reports and forecasts across multiple industries, including tourism. |
| Tourism Economics | Publishes a range of free and paid for insights and reports on global travel data, forecasts and intelligence. |
Source: Acorn Tourism Consulting
Online Resources – Specialists in Market Research, Technology and Software for the Tourism Industry
| Specialists in Market Research, Technology and Software for the Travel Industry | |
| Organisation | Details |
| AirDNA | Insights and intelligence from Airbnb. Paid for service only. |
| Arival | Market research and intelligence focused on the tour operator market. Some guides are free. |
| Redzy | Online booking software for tour and activity operators. Provides a range of free resources online. |
| Skift | Skift Research provides analysis, data and expert opinion on companies and trends shaping the industry. Access to information is provided via a mix of free and paid for news, updates, reports and research insights across the travel industry. |
| Tourism Tiger | Website design and build for tour and activity operators. Also provides comprehensive resources for the industry. |
| Trekksoft | Online booking software for tour and activity operators. Resources to help boost skills and business. |
Source: Acorn Tourism Consulting
Interesting technologies in the tourism sector
The diversity of the tourism industry has enabled the sector to embrace new technologies in many different areas. Artificial Intelligence (AI), Augmented Reality (AR) and Virtual Reality (VR) are all contributing to digital transformation of the sector. AR and VR are being used to stimulate interests of tourists by allowing them to take virtual tours of destinations and/or attractions.
Virtual tours are increasingly common, using technology powered by platforms such as Google’s Tour Creator and AirPano. You can see the Seven Wonders of the World, including Petra, the Taj Mahal and the Great Wall of China, visit museums, go on a digital safari, take a virtual hike or check out famous landmarks. For examples of virtual tours, see Lonely Planet’s article, The best virtual tours to explore the world from home.
Live Streaming is a trend that grew during the COVID-19 pandemic and looks set to stay. Destinations, tour operators and museums have all embraced the technology. www.explore.org is the world’s leading philanthropic live nature webcam network and documentary film channel. The website hosts live webcams at spots all over the world, providing footage of watering holes in Africa, gorilla parks, big cats, sanctuaries and much more. Feeds are streaming 24 hours a day.
To explore how to set up live streaming, read this blog by Hootsuite, How to use YouTube Live to Engage Your Audience: A Step-by-Step Guide.
Chatbots and virtual assistants are increasingly being used by companies online to improve customer service, reduce costs and speed up response time. It is estimated that 1.4 billion people use chatbots (pop-up message boxes), and that they can answer 80% of standard questions.
Figure: Chatbot Statistics
Source: smallbizgenius
SnatchBot is used by many hotels and airlines. It is compatible with all major social media channels and guides tourists through the booking process with ‘smart’ questions. Another example of low-cost chatbot builders includes MobileMonkey, a chatbot builder which has a number of templates for different industry types. It also provides a free 24/7 chatbot answering service and chat marketing tools for small businesses.
New to market in 2019, tour operator marketing intelligence software company TOMIS has developed a chatbot within its portfolio of marketing services and products for the tour operator market.
Figure: Example of a Chatbot
Source: TOMIS
The Internet of Things (IoT) refers to internet-enabled devices that include mobiles and tablets, but also internet-enabled devices in the home/hotel, including smart speakers like Amazon Alexa or Google Home, heating systems and appliances, and smart watches. For example, hotels can enable users to access IoT sensors in their rooms to adjust room temperatures and optimise lighting and use the technology to save energy and promote their sustainability credentials.
Figure: Applications of IoT in the Travel Industry
Source: www.analyticsteps.com
See these examples of technologies in action:
- The Hilton Hotel group has created an AI robot called ‘Connie’ which uses AI and speech recognition to provide tourist information to customers who speak to it. Every interaction helps to improve the service provided by the robot. Watch this You Tube Video about Connie the Conciergeto find out more.
- United Airlineshas incorporated smart device flight check-ins through Amazon Alexa, Google Home and Fitbit’s Iconic smart watch. The United app allows tourists to access flight status and boarding pass, available on their phone or watch.
- Some inspirational virtual tours include Machu Picchuin Peru, Museo Frida Kahlo in Mexico City, and Christ the Redeemer in Rio de Janeiro.
- Various zoos livestream to allow visitors to meet the animals, such as Chester Zooin the UK, and San Diego Zoo in the US.
Tip:
- You should keep up to date with developments in the sector so you can adapt your business to implement new technologies when the time is right. Although some of these technologies are in early stages of development and will be expensive to adopt in the short term, it is useful to know how new digital technologies are shaping the tourism sector.