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Tourism Data Mining: A comprehensive analysis of information for its application in the decision-making processes of tourism SMEs in the Canary Islands (DAMTUR)

The Canary Islands are a well-established sun and beach tourist destination that, according to various theoretical models and tourism evolution indicators, are in their mature stage approaching stagnation (Bercial and Timón 2005 and Vera et al., 2011). This is confirmed by the decline in tourist arrivals in recent years (Álvarez, 2009; Corral and Hernández, 2010; Hernández and Santana, 2010; Simancas et al., 2010). Analyzing the external context, the political, economic, and social instability of the Canary Islands' main competitor markets is contributing to a shift in this trend, as there is an increase in visitor arrivals to the islands. However, this favorable circumstance (the crisis in competing markets) should not prevent the Canary Islands from undertaking the necessary changes to meet an increasingly qualified and technologically demanding market. But to achieve these changes, a thorough understanding of supply and demand is necessary to make the decision-making processes of the Canary Islands' tourism SME sector more efficient, which is part of what the current project aims to achieve. Internally, most tourism companies now see the need to adapt to digital transformation through its various facets, where social media, mobile devices, and the internet are essential for reaching today's consumers, who seek convenience when traveling around a city or even when booking a flight or hotel. All these changes in tourist behavior patterns, coupled with their need to share information (opinions, comments, and experiences) online, have become the primary source of information for tourism businesses. The main driver of these changes is precisely the Internet, especially considering that, currently, more than 401% of the world's population uses this Network (ITU, 2015) and that it is expected that by 2020 this percentage will be 601%, as reflected in the objective of the "Connect 2020 Agenda" set by the 193 Member States of the United Nations specialized agency for ICTs (the ITU) as one of the essential measures to achieve the seventeen (17) Sustainable Development Goals of the United Nations (ITU, 2016). The digital transformation (socialization, democratization of the internet, the Internet of Things, etc.) that the sector is undergoing, and whose key pillar has been the internet, can help companies—especially SMEs—to achieve greater profitability and develop competitive advantages, as well as add value to the destination's offering and make much smarter, data-driven decisions (through Business Intelligence strategies). Furthermore, this digital transformation brings with it certain trends that will be addressed and developed throughout the project and that will contribute to the destination's renewal, such as territorial intelligence, transparent tourism, the Internet of Things, robotics, and others. However, the various tourism stakeholders in the destination, both public and private, need to work together and create the ideal framework to diversify the tourism offering, creating new business models and making decisions more efficiently, thereby trying to avoid advanced stages in the tourism destination's life cycle. However, it is necessary to have useful data and information to support decision-making, as has been explained. The project presented here (DAMTUR — Data Mining Tourism), thematic area: “Big Data and Tourism: New indicators for sector management,” is framed within the competitive action lines of the Cajacanarias-ASHOTEL Tourism Chair. It aims to create a set of tools for the decision-making processes that tourism SMEs in the Canary Islands must face. Initially, the project will be piloted for SMEs in the province of Santa Cruz de Tenerife, but it can be extrapolated to the Canary Islands as a whole. DAMTUR will help standardize the digital information of tourism companies and, consequently, of the destination, laying the groundwork for the development of a future Tourism Intelligence System (TIS) that is more dynamic, agile, and practical for users. Consequently, the aspects motivating this research project of the Cajacanarias-ASHOTEL Tourism Chair follow these lines: A. First, it will be necessary to conduct a diagnosis of the business fabric of tourism SMEs in the Canary Islands, with special emphasis on the province of Santa Cruz de Tenerife, as well as the various stakeholders that comprise it, identifying needs and problems. B. Next, the information requirements of the province's SMEs for their decision-making processes will be identified, as well as the necessary information sources, for their subsequent incorporation into a Tourism Intelligence System (Big Data platform) and its exploitation through Data Mining techniques. This aspect, in turn, implies the following actions: 1. Through the collection and analysis of data, a proposal of solutions will be developed using a series of initial indicators, so that companies can make decisions based on real data and incorporate Business Intelligence processes into their business management. 2. Identify the errors generated by the lack of uniformity in the tourism stakeholder ecosystem and propose a set of measures to ensure a unified approach. 3. Integrate the decision-making processes of SMEs into a Tourism Intelligence System (TIS) for the province, applicable to the Canary Islands, which will be developed using the initial and final indicators (see Table 1 in section 3.3) identified as essential for tourism decision-making throughout the research. Considering the project's development phases, the fundamental and general objectives will be the following: 1. A preliminary diagnosis of the various stakeholders in the tourism ecosystem, reflecting their methods of obtaining information, identifying the information they manage, their shortcomings, and how this influences decision-making processes (PHASE I). 2. Establish a more efficient and dynamic framework for decision-making within the Canary Islands' tourism SME business network (PHASE I). 3. Using Data Mining and Business Intelligence techniques, design and implement strategies that align with the digital transformation processes underway in the tourism industry, enabling us to identify emerging trends and developments (PHASE II) and thereby laying the foundation for a Tourism Information System (TIS). 4. Develop a set of baseline and endpoint indicators to facilitate more efficient decision-making tailored to the tourism model and taking into account demand behavior. 5. Finally, contribute to the development of a TIS for the Canary Islands, serving as a basis for achieving the remaining objectives. These five (5) objectives will help us uncover new opportunities and markets for tourism SMEs in the province, aligning with a Smart Destination development strategy. It is worth noting that various strategies and programs at the European level (Horizon 2020 Program, Digital Agenda for Europe), national level (National Smart Cities Plan, Digital Agenda for Spain), and regional level (RIS3 Canary Islands) encourage and support this type of project and research, as data analysis and the study of behavioral patterns represent a sound investment for the future of business decision-making processes, and in this case, for the tourist destination as a whole. This project addresses a topic that has recently emerged in the literature and is of great interest for designing business and economic development strategies. Ultimately, the aim is to provide solutions that add value and competitive advantages to differentiate and revitalize the tourist destination in the province of Santa Cruz de Tenerife, and consequently, the Canary Islands, from the perspective of SMEs, focusing on digital transformation and Business Intelligence and Data Mining techniques.

Researcher at the University of La Laguna

  • Information
  • Category: Other entities
  • Program: CajaCanarias Foundation 2016
  • Start date: 03/01/2017
  • End date: pending definition