The tourism industry is undergoing a revolution driven by big data analytics
Smart tourism is rising as businesses use data to create customised travel experiences. This trend is expected to continue in the coming years, with the global tourism industry big data analytics market projected to grow at a CAGR of 8 pc from 2023 to 2033.
The tourism industry is undergoing a revolution driven by big data analytics. According to research and analytics firm Future Market Insight, the global tourism industry’s big data analytics market is likely to reach USD 486.6 billion by 2033, registering a compounded annual growth rate (CAGR) of 8 pc. This is a substantial upsurge from its projected worth of USD 225.4 billion in 2023.
The market has experienced significant growth and relevance, says the report. This development can be attributed to the tourist industry’s growing use of big data analytics. In the fiercely competitive tourism landscape, companies that can harness the power of big data have an advantage. They can identify trends, predict customer needs and stay ahead of the competition. Big data analytics confers a competitive advantage by enabling businesses to make informed decisions promptly, says the report.
According to the report, big data analytics lets tourism companies gain insights into customer behaviour and preferences. These insights help them target marketing and advertising efforts more effectively. Companies can identify relevant channels, messages, and offers by analysing customer data. They can do this for different customer segments, driving customer acquisition.
Integrating artificial intelligence and machine learning technologies with big data analytics has propelled market growth. Artificial Intelligence (AI) and Machine Learning (ML) algorithms automate the analysis of large datasets. They also uncover hidden patterns and correlations. These technologies enhance the accuracy and efficiency of decision-making processes. The tourism industry recognises these technologies’ value and potential to drive growth. Consequently, there has been an increased adoption of big data analytics solutions.
It adds that demand for personalised services has fueled the adoption of big data analytics solutions in the tourism industry. Tourism businesses leverage big data analytics to understand customer preferences, behaviours and expectations. By analysing large volumes of customer data, businesses can customise their offerings.
“Big data analytics in the tourism industry is shaping the future of travel. By harnessing vast data sets, this technology drives personalisation, decision-making, and marketing strategies, revolutionising the way travellers explore and experience the world,” says Sneha Varghese, Senior Consultant, Consumer Products & Goods.
The report says that the tourism industry big data analytics industry in the United Kingdom is anticipated to rise significantly, at a CAGR of 4.7 pc through 2033. The United States held a 4 pc share of the global tourism big data analytics industry in 2022. With a CAGR of 5.1 pc over the forecast period, India is predicted to develop rapidly in the tourism industry big data analytics industry, says FMI.
In 2022, Japan had a 4.8 pc share of the tourism industry big data analytics industry globally. The tourism industry big data analytics industry in China is expected to flourish speedily, registering a CAGR of 6 pc over the forecast period. Germany accounted for 5 pc of the global tourism industry big data analytics industry in 2022.
The statement adds that big data analytics plays a pivotal role in destination management by empowering authorities to make data-driven decisions. These decisions are regarding infrastructure development, crowd management and tourism planning. Data on visitor flows, preferences, and behavioural patterns are utilised. They are used to design sustainable tourism strategies. Additionally, data helps allocate resources effectively, in addition to mitigating negative impacts on local communities and the environment.
Dynamic market conditions, changing trends, evolving customer preferences and fluctuating demand patterns are supported by big data analytics that enables businesses to analyse vast amounts of data. The data come from various sources like social media, online reviews, booking platforms, and customer feedback, helping to identify emerging trends and make data-driven decisions. It is essential for staying competitive in the tourism industry, adds the report.
