One of the industries that took the worst impact in 2020 was the travel business, which had a total worth of $3 trillion in 2019. Revenge Travel is what some people are calling the large increase in travel that occurred in 2022 as a direct result of the implementation of worldwide vaccination programs. This is the good news. Utilizing strong Data Analytics and Machine Learning models allows for the possibility of accurately predicting a travel industry rebound in the following months. This is also helpful in understanding the resurging demand from passengers as well as the adjustments they are making to their preferences.
The Increase in the Number of People Traveling and Their Concern for Their Own Safety
Individuals in countries such as the United States, Israel, Canada, the United Kingdom, and Germany, where more than half of the population has been vaccinated against COVID-19 with at least one dose of the vaccine, are already seeing people restart their postponed trip plans for the year 2020. IHG Group of Hotels, a well-known international hotel and resort operator, recently asked 6,000 individuals all around the globe about their travel experiences as part of a study. According to the results of the study, the desire to travel remains at the top of everyone’s wishlist, and respondents said that they were ready to leave as soon as foreign travel for leisure and tourism was made possible.
Utilizing Data Analytics on the Travel Industry
Hotels and airlines, which together account for more than sixty percent of the income generated by the travel sector, are sitting on vast heaps of unused big data that have been preserved for the previous ten years. Data from the past provides us with useful information about booking trends as well as favored locations.
- Where did you get your information from?
- Inquiries about search and booking that were sent to the appropriate website
- Information on Payment Transactions (Including Data on Domestic and International Payments)
- Trends in internet searches obtained from Google and Bing Search inquiries obtained from each destination
Keeping Tabs on the Travel Bounce Back Using Custom Metrics
It has been determined that there is a collection of individualized measures that may be used to monitor the recuperation of demand for a travel company. These metrics are applicable to any kind of travel-related data, such as hotel bookings, airline bookings, foreign exchange transactions, and credit card and debit card purchases, among others. The following table includes some of the most important KPI measures that we’ve identified:
- Convergence and Divergence of the Moving Average (MACD)
The Moving Average Convergence/Divergence (MACD) is a statistic that is used in stock trading, and it may also be used to estimate travel demand. This indicator examines whether or not there has been a discernible rise in bookings by comparing the moving average for the last week to the moving average for the preceding month. A substantial disparity between these two averages is very suggestive of a discernible increase in demand.
The direction of the MACD gives us a “signal” that the economy is “growing” again and that the growth is gaining momentum (Momentum).
- R.S.I. stands for the Relative Strength Index (RSI)
MACD and RSI are two metrics that complement one another well. The Relative Strength Index does just what its name suggests, calculating the degree of change in bookings while also analyzing the highs and lows of a certain time period. This, fundamentally, refers to the forward momentum of a country’s tourism industry revival.
When the ratio of RSI becomes higher, the strength of the rebound goes stronger as well.
- Intent to Travel Score
Using a seven-day average booking volume and week on week change percent, a country’s ‘Intention to Travel’ score is computed, and then that score is shown on the global travel recovery matrix.
How can businesses in the airline, travel, and hospitality industries benefit from analytics?
The following are some of the areas in the travel industry where advanced analytics might be implemented:
- Predictions of travel demand for the next months, broken down by destination and kind
- Dashboard provides real-time insights on payments and bookings, as well as an analysis of paid and organic reach in social media channels
- Pricing analytics are used to determine what the optimal pricing range is in order to achieve more profits while maintaining occupancy levels.
- The distribution of marketing budgets among multiple media, depending on statistics
Finding the Travelers Who Will Bring in the Most Money
Analytics helps unearth numerous vital information on the new varied expectations of tourists and identifies places that obtain greater traction. Analytics provides businesses with the essential insights that enable them to remain one step ahead of the curve, whether it is in the areas of seasonality, pricing, demand, or regional preferences.
An Opportunity to Start Over and Reconstruct
In spite of the fact that travel came to a total halt in 2020, there was an astounding rebound in 2022, which suggests that there is a big chance for a travel boom in the near future. If you are the Chief Marketing Officer or Chief Technology Officer of a tourism board, airline, or hospitality company and you are looking for an opportunity to rebuild and drive a significantly more impressive guest experience, analytics will assist you in making decisions that are supported by data and insights.
So this has been an insight over Data Analytics in the travel industry, hope you enjoyed!