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Big Data and Tourism The future of technology for tourism

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Presentation on theme: "Big Data and Tourism The future of technology for tourism"— Presentation transcript:

1 Big Data and Tourism The future of technology for tourism
in West Lothian. Lorraine Stone UK Director Telefonica Dynamic Insights Good afternoon- Here to talk about big data, what it is, what we’re doing with it (Smart Steps), other benefits: to citizens, and keen to hear your ideas about some potential benefits to policing. Context: I look after the UK arm of Telefonica Dynamic Insights, we use aggregated and annonymised mobile network data to produce insights for public and private sector.

2 Tourism through the ages
??? ? Great day at the zoo! 2013 1900 Pace of change – technology as an enabler for consumers – smart phones, apps – but arguably as beneficial for businesses on the surface. Social media, customer feedback as a public entity, the discount industry (set to rise 96.5% by 2017)… But there’s more… The good news is… it’s about to get even better for businesses. The insights you have on your consumers is fast becoming more accurate, and more useful than ever before… because of a trend that is about to come truly into its own.

3 Big Data

4 What is Big Data? That’s 5,000,000,000,000,000,000 bytes
From the dawn of time to 2003, 5 Exabytes* of information were created... The world now generates this every two days *5,000,000,000,000,000,000

5 And how does it come together?
What is big data? “When the volume, velocity, variability and variety of data exceed an organization’s storage or compute capacity for accurate and timely decision making” (SAS) “Large pools of data that can be captured, communicated, aggregated, stored and analyzed” (McKinsey) Velocity Data arrives at extremely high rates Variety Data is unstructured, sources range from images to audio and video streams, text/logs, transactions, etc. The more data sources included, the more complicated the tasks of sorting, de-duplicating, linking and matching Volume Data requires significant amounts of storage space

6 Big Data is already helping citizens
Travel networks Smart Cities Event Planning Spread of disease Big Data is adding value in all areas of citizen engagement, all over the world…. A few examples: Real time traffic information services that can be improved using more and better data More connected devices mean more information – we expect 20 Billion by There’s a trial happening in Santander (smart cities), which should result in tools to better manage energy consumption in cities and all sorts of other things. For large events, like the upcoming Olympic games in Rio, we can now understand what the real behaviours of crowds are and properly plan access to the venues, particularly in the case of emergency services support and security. We can now track how disease spreads, looking at how people behave and then change their behaviour – the same information can tell us crucial information about the places with the highest contagion, for example. Now let’s look at what we’re doing in the space.

7 90% of mobile users keep their mobile <1 metre, 24/7
Mobile phones are everywhere, with a mobile phone penetration rate of 128% in Europe, 104% in the USA and around 75% in China and India. Furthermore, users consider their mobile phones as a really important item, keeping their mobiles on and close to them all day. Telefónica has more than 300M users in 25 countries, giving us real data on an incredibly large sample of society. We handle a vast amount of data. In the UK alone we have 1.1 billion events per day. Of course Telefonica has managed data and customer information for many years, it is one of the core skills of our business. We use our network data to help us be as efficient as we can in placement of network masts and to improve the network performance for our customers. We use our data to improve our marketing, our customer propositions and to help us serve our customers better and to serve them more efficiently. Approached *in a smart and responsible way* it has the potential to transform every part of business and society – providing economic growth and improving people’s lives. With that in mind Telefonica has set up a big data business to tap into all of its data to help our customers make better decisions by giving them access to our data. And what we are going to do is describe to you how we have gone about it and share some of the tech challenges we met along the way.

8 What’s that got to do with O2?
22 million mobiles… 1.1 billion events per day Insights Key take out: bringing it back to the mobile world, huge amount of imprints made on our network each day TODAY Vastly larger quantities of data are being created Smartphone proliferation Digital publishing tools M2M and industrial sensors Enabling technologies have matured Storage and bandwidth Analytics software Cloud computing By collating transactions made with the O2 UK cellular network, Smart Steps has access to a sample size of over 22 million customers making, on average, 1.1bn network impressions. This in turn creates geographical trends showing crowd movements. In addition to this socio-demographic information is appended and the data sample extrapolated to represent local population volumes.

9 Privacy is our number one priority.
ANONYMISED AGGREGATED EXTRAPOLATED Privacy is our number one priority. Anonymised- data is not identifiable to individuals, stripped of all identifiable factors Aggregated- never refers to groups of less than ten people, and records in multiples of ten. It’s about the behaviour of crowds Extrapolated- alogorithms evolve this data into a representation of the public based upon Telefonica’s market share. Personal data- owned by the person Aggregate data- owned by the company Pricacy is one kind of service- what you really want is some kind of value for your data? Public has to understand it, and, see the public good. Do citizens trust the police to actually manage this data?

10 So what does Big Data mean for Tourism?
Smart Tourism Where are they from? How did they get there? What are they spending? Barcelona Proof of Concept Smart Tourism can help us glean never-seen-before insights from Tourists… the key features are…. Tourist by location (international and domestic), Transit movement (tourist entry/exit points and modes of transport to get there) and locality spend. In Barcelona, we are looking at the data to try and identify: correlations between tour guide itineraries and capacities to feed/water tourists in Barcelona (simplistically trying to shift tourists out of the over-crowded areas like Ramblas and into neighbouring districts with under-utilised foodservice capacity at lunchtime etc). They are also looking at the ratios of tourists by day to tourists staying overnight in the city by country of origin and by stay duration Finally they are targeting the cruise ship population and trying to identify the most powerful triggers to persuade the passengers with a propensity to stay on the ship to disembark and visit the city.

11 Bringing it home… UK footfall, hour by hour.
Smart Steps was developed as a tool for retailers… but the use cases reach far beyond them. Mapping footfall over the entire UK, hour by hour , to produce a real picture of the volumes of people in an area, their demographic profile and at what time. For example with O2 retail we are currently adjusting store opening hours to be more reflective of footfall patterns in a given area. This could be used to boost enterprise in town centres. Another application could be understanding your night-time economy in greater detail would be beneficial. As it is literally harder to observe, and is outside of working hours for many local authority functions, understanding the profile of people and the behaviour of crowds at these points could be very enlightening.

12 May 6th saw visitors as far flung as Aberdeen visit
low penetration high penetration Here you can see detail around the catchment element of the Smart Steps tool for Livingston for a set period, from May 6th – June 2nd this year. You can see over the course of this period which location people travelled from most to get there. This only really comes into its own over the next few slides…. So let’s look at a specific point in time… the first May Bank holiday. From a tourism perspective, examining catchment means that you can see where people are coming from – meaning you know who you’re attracting from different parts of Scotland and England. This is a good way of measuring the amount of people who attended from specific areas, but the usefulness goes beyond this. One use case for this is from a marketing perspective. E.g. if you can understand where your target audience is located, you can be far more effective in future campaigns. FIRST BANK HOL: SAW PEOPLE FROM X AND Y, but 0 or much less in the second.

13 But on May 27th, areas near Aberdeen were less interested
low penetration high penetration In comparison, this was the other end of May bank holiday season – you can see a distinct change in catchment. It suggests that the people who visited Livingston this time, were different to 6th May. People tended not to repeat visit. Value: if you wanted to attract people on a specific day for an event, you can review patterns from an historic day, to attract the right people from target areas to Livingston.

14 Livingston-dwellers fled the city on May 6th for a day at the coast
low penetration high penetration Reverse catchment shows precisely the opposite. For the people who LIVE in Livingston – where were they going to? Again, much more interesting when we consider specific events… These reverse catchments show patterns of crowd movement according to people who LIVE in Livingston. I.e. these people opted not to stay in Livingston for the bank holiday, and we can see where they chose to visit instead. Value: This is valuable from the perspective of a competitor tourist board or event host – i.e. if a large proportion of people from Livingston are heading to Edinburgh for a day out, Edinburgh tourist board can understand better where to market. It’s worth noting that we can do this for any given location – meaning, you could BE that competitor tourist board, looking at people who opted not to stay in Edinburgh, but came to Livingston for the day.

15 But most of them opted to stay at home for the latter bank holiday!
low penetration high penetration And again, you can see a marked difference on the other bank holiday. (27th May)

16 Key entry routes into Edinburgh
Edinburgh, as we all know, feeds a large proportion of the tourists into West Lothian. We at Smart Steps can see patterns of arrival – by air, by rail and by car. Not only can we tell you patterns, but we know precisely where specific crowds travel from. We can tell you by location, but also by rail network or airline. Here you can see that the top airport feeders are Heathrow, Gatwick and Belfast. Information like this allows commercial transport operators as well as public planners to understand demand profiles on a hourly basis in order to influence / understand choice of type of transport by citizens- for both commercial gain but also for improving the customer experience!

17 Relative density plot of originating area of 16,976 long range visitors, who travelled by road
And let’s look at arrival by location. We can see that on this particular day, largest numbers travelled in from Newcastle and Aberdeen by car.

18 And it was a similar story on the trains.
Relative density plot of originating area of 15,187 long range visitors, who travelled by rail >2000 visitors 1000 to 2000 500 to 1000 50 to 500 10 to 50 And it was a similar story on the trains.

19 Relative density plot of originating area of 6,183 long range visitors, who travelled by rail
But by air the focus was longer ranged – from Belfast (perhaps understandable considering the impractability of driving!)

20 Relative density plot of originating area of 16,976 long range visitors, who travelled by road
Focussing on the South and how they feed into Edinburgh and the West Lothian area… you’ll see the natural high penetration around London and slightly denser in Manchester than the surrounding regions….

21 Relative density plot of originating area of 15,187 long range visitors, who travelled by rail
But the numbers who travelled from these locations, particularly London is far, far higher by rail.

22 Relative density plot of originating area of 6,183 long range visitors, who travelled by rail
And by air, even denser. The London area, encompassing Gatwick airport is extremely dense in penetration, but so is Birmingham, interesting as the only area that showed limited penetration through any other mode of transport!

23 Example 1. Example 2. Newcastle Upon Tyne Livingston
Vibrant nighttime economy, extending to small hours. Occupancy c.90% of daytime Example 2. Livingston Relatively smaller nighttime economy, relative to daytime occupancy.

24 It’s about improving the Citizen Experience
Improving Tourism Experiences Anonymised and aggregated Big Data presents an opportunity to shape experiences around citizen actual wants, needs and behaviours. Answering real world questions Infrastructure Communications Public Services Business Potential to get better handle on where people are coming from into crime hotspot areas – is it the residents or are there clear patterns of influx from people from certain areas and then increases in crime? Managing traffic/resourcing knowing where it will be busy and where from – to getting a good idea of the routes people will be taking in For example with O2 retail we are currently adjusting store opening hours to be more reflective of footfall patterns in a given area

25 Thank you. lorraine.stone@telefonica.com @tefdig @o2business
UK Director Telefonica Dynamic Insights


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