Traveling is one of my favorite things to do, so I explored how data mining might affect this activity. I was interested to find out the travel industry is using data mining as much as any other. While any service provider uses data mining to create higher
profits they are also using it to better serve customers.
By tracking
behavior patterns of all clients and by individual IP addresses or customer IDs,
service can be in a way, customized. The travel industry focuses on predictive analysis for future trips. The analysis can be created by the manipulation of the massive amounts of data collected. The predictions of what customers want allows them to cater to that and increase sales and therefore profits.
Patterns found in analysis of travel data can allow companies to identify groups of similar customers. Groups could be those that who travel only based on price or others that are set on specific destinations. This type of information along with your unique preferences like only flying first class and only staying at boutique hotels will help build the recommendations that online travel booking sites like Expedia use.
Just as our group explained in our presentation grocery store reward cards and frequent flyer numbers help to track customers and create these profiles. The nature of the traveling industry means that its customers are often moving, and regardless of which branch of a hotel they are staying in data mining creates the ability to track the preferences of their customers. The ability to cater to a customers wants creates a happy customer who will visit this establishment again.
As we have asked before are we willing to share all of this information? Do we know that others have it? What is more important privacy or convenience?
Source and further reading:
http://www.executivetravelmagazine.com/articles/how-data-mining-impacts-your-travel
There are things that I feel people do not mind sharing (companies having access to) and there are other things that people mind others having access to. If a company was using my information for illegal or unethical activity then I would have a problem with that. Travel agencies using data mining to provide better customer service is a great idea. When you make customers happy you create customer loyalty. The travel agency is able to offer certain deals, locations, and hotels to their customers. Sometimes it helps to be presented with ideas about vacations and trips to decide where you want to go.
ReplyDeleteI also love to travel. I think that using data mining to keep track of my preferences and what I personally enjoy is a wonderful idea. If an agency could offer me a deal for a trip based on where I have been before or certain flights I have taken, I would definitely want to take it. If a company was trying to scam me, however, is another story. I don't think that the majority of agencies are trying to do that, though.
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