December 27, 2022

What Is Data Analytics In Tourism

Big data is typically associated with finance and information technology. However, it has been used in the travel industry since a few years ago. The massive adoption of data analytics in the travel sector has created an entirely new market - the tourism data analytics market.

This market is expected to grow to $350 billion by 2032 from $220 billion in 2022. We're talking about a 15% CAGR. To learn whether big data and data analytics can help your organization, you need to understand data's role in the tourism industry. Here is what you need to know: 

What Is Data Analytics In The Tourism Industry?

The best way to learn about data analytics in tourism is to learn about data analytics in general.

Data science has a field called "data analytics." It refers to the different methods and processes that make analyzing raw data easier. Its main goal is to help organizations understand data and use it to draw conclusions and make decisions based on facts.

Through the years, sophisticated algorithms have made it possible to automate these processes and techniques. Different types of data analytics exist to aid company strategy.

Descriptive analytics shows what happened. Diagnostic analytics shows why something occurred. Predictive and prescriptive analytics help organizations determine what will happen and what to do next.

Why Is It Important For The Tourism Business To Use Data Analytics?

Data analytics plays a more significant role in tourism and hospitality every year. Companies in the travel industry now track, record, store, and efficiently process big data, thanks to new IT technologies. This means that even small companies can use cutting-edge solutions.

Service providers have been able to cut costs due to improvements in cloud technologies and infrastructure that support big data and data analytics. Thus, big data is now less expensive for travel organizations to employ.

Data analytics gives travel companies access to many new opportunities. First, it helps travel professionals who aren't experts in data science quickly look over large amounts of data. 

Next, it gives travel companies information about their ideal customers, which can help them gain a competitive edge.

Lastly, big data helps travel companies collect information about themselves. Data analytics helps them understand how their business works and how it interacts with customers and partners.


Data analytics has various applications in the travel industry. It provides meaningful insights and streamlines decision-making.

Given the predicted growth of the tourism data analytics market, we may expect to see even more data analytics use cases in the sector ranging from improving the customer experience to increasing earnings. 

To learn more about data analytics in tourism, get in touch with AirSage today. 


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