Big Data Analytics
This kind of analytics algorithm compare the past searches and purchases of the user with other customers with the same likes. Then it can suggest new destinations based on the cities previously visited
It can be applied even when we don't have futher information about user previous behaviour, the so called "non personalized recommendation".
For example, given the user country and city, from GeoLocation, and the seasson this type of analytics could suggest the most probable destinations to appear first in the website. This way it could be applied to new users
The typical approach suggest new destinations to our users, but we can look at the reverse path. For example, we want fo promote a Hotel, the algorithm can select the users with the higher conversion rates for a personalized marketing campaign
Personalized marketing and customer segmentation
Different users have different tastes and likes. A one size fit all marketing strategy will underperform and deliver a poor ROI
This kind of analytics algorithms has the ability to segment your customers in different groups that shares the same demographics characteristics or buying behaviour. In order to create a personalized marketing campaign that will deliver the right message to the right user at the right time via the right channel.
The same techniques could be applied to the Hotels and destinations. This way we can create groups of Hotels with the same characteristics, stars, ammenities, location ... Then when the user is visiting online a Hotel we can offer him Hotels within the same group on characteristics
Propensity to buy / churn prediction
This algorithm can be used to estimate the probability of a potential customer to buy an accommodation or travel.
If a customer has a lower probability to buy, a discount could be added to increase the conversion rate
It could be applied also to cross-selling scenarios, for example offer different extras depending on the customer: car rentals, travel insurance, airport transfer ...
It could help adding extras or upgrades, like suite room, breakfast or tours