Effects and Potentials of Business Intelligence Tools on Tourism Companies in a Tourism 4.0 Environment

Effects and Potentials of Business Intelligence Tools on Tourism Companies in a Tourism 4.0 Environment

Copyright: © 2023 |Pages: 22
DOI: 10.4018/978-1-6684-9039-6.ch008
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Several technologies emerged and disrupted how they operate in the Tourism 4.0 environment surrounding tourism companies. One, the digitalization of processes has become a way to support survival, and second, data grows exponentially daily. In this environment, a business intelligence tool can help to improve decision-making while enabling managers to realize complex information quickly and make more efficient decisions. The benefits of BI adoption in businesses encourage scholars to study and research this topic. This study aims to understand the effects and potentialities of business intelligence systems conjugated with artificial intelligence for tourism companies. As the main findings, the potential of BI helps the tourism company to increase destination sustainability support and to create a shared decision-maker environment between the companies.
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The ability of firms to convert data into valuable information is increasingly important as a competitive and success aspect. Prior to the data aging and becoming unusable, the vast volume of recorded data must be quickly transformed into information (Hočevar & Jaklič, 2010).

The majority of client requests, including those for services related to tourism, are now made online via websites or applications thanks to daily technological advancements. As a result, there would be a vast amount of customer-related data, which might be used to store information about customer behavior and perception (Fuchs et al., 2015).

Businesses can increase their performance by using this data to their advantage. The marketplace is a place where businesses compete, and by drawing on user experiences, they can improve their competitive edge. According to Rostami (2014), in recent years, market competitiveness has become a matter of survival or bankruptcy as well as profit and loss.

The data collected through online gates needs to be analyzed and translated into useful information because it is not informative. According to Fuchs et al. (2015), business intelligence (BI) tries to process and analyze this data in order to make it valuable for the clients.

According to Bustamante et al. (2020), who conducted this study, business intelligence may be thought of as the process of extracting and evaluating data to enhance decision-making. Business intelligence (BI) is a concept that encompasses several interconnected processes, including information gathering and organization, data analysis and control, report generation, and managerial activity support.

Users of business intelligence can easily comprehend complex information and, as a result, make quicker and more effective decisions. The implementation of BI science's techniques, technologies, systems, methodologies, and applications within organizational systems enables them to gain recognition for their efforts, improve their ability to make decisions, and boost their revenues (Vajirakachorn & Chongwatpol, 2017).

The end outcome would be decreased costs and higher revenue for the businesses. According to this strategy, BI deployment can benefit any company or organization, regardless of its size, focus of business, or position in both domestic and foreign markets. The outcomes (Vajirakachorn & Chongwatpol, 2017), which lead to operational work optimization, improved customer and supplier relationships, increased profit, more supportive decisions, and competitive advantages in the market (Bustamante et al., 2020), include unprecedented insight into consumer sentiment, client demands, and the identification of new business prospects.

For tourism companies and destinations, the collaboration of BI platforms produces an intriguing analytic outcome (Bustamante et al., 2020). However, utilizing the new technology calls for the development of mathematics, training in IT (Information Technology) systems, and reengineering the management of an organization's culture, all of which could result in additional costs for businesses (Alcabnani et al., 2019) and also increase their competitiveness (Nyanga et al., 2020; Lv et al., 2022).

The advantages of BI adoption in tourism businesses motivate researchers to learn about and do research on this subject. The purpose of this study is to comprehend the business intelligence process and how it would help businesses develop and operate more the tourism business more effectively. The main questions are mentioned to help establish the direction of the investigation, and it is intended that the study will provide appropriate responses to each of these questions.

  • 1)

    What are the effects of BI in tourism companies?

  • 2)

    What are the BI potentials in Tourism companies?

Key Terms in this Chapter

Decision-Making: The process of making choices. After detecting a problem involves gathering information and assessing alternative resolutions, the chosen alternative is implemented, which will be identified as the chosen decision.

Tourism Industry: One of the largest industries in the world. It emerged to satisfy the human need to travel to and see different places as part of the service sector, including hospitality (e.g., accommodation, restaurants), transportation (e.g., airlines, car rental), travel facilitation and information (e.g., tour operators, tourist information centres), and attractions and entertainment (e.g., heritage sites and traditional and cultural events).

Business Intelligence: This results from information systems that combine data with analytical tools to provide information relevant to decision-making while seeking to improve the quality and availability of this information to decision-makers.

Tourism Experience: This is a set of activities in which individuals engage on their personal terms, such as pleasant and memorable places, allowing each tourist to build his or her own travel experiences so that these satisfy a wide range of personal needs, from pleasure to a search for meaning.

Sustainability: It considers three dimensions: environmental, social and economic, interlinked to meet the needs of the present without compromising those of future generations and where the technology can support the three dimensions.

Tourism 4.0: Ecosystem that considers the technological pillars of Industry 4.0, which aims to unlock the innovative potential of tourist regions, boosting the emergence of smart tourism regions while adding value to the tourism experience.

Artificial Intelligence: Is the simulation of human intelligence processes, especially by computer systems. It presents many business potentialities, such as sales forecasting, customer segmentation, fraud detection, and quality control.

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