Data-Driven Marketing: Purchase Behavioral Targeting in Travel Industry based on Propensity Model

Abstract: By means of data-driven marketing as well as big data technology, this paper presents the investigation of a case study from travel industry implemented by a combination of propensity model and a business model “2W1H”. The business model “2W1H” represents the purchasing behavior “What to buy”, “When to buy”, and “How to buy”. This paper presents the process of building propensity models for the application in behavioral targeting in travel industry.     Combined the propensity scores from predictive analysis and logistic regression with proper marketing and CRM strategies when communicating with travelers, the business model “2W1H” can perform personalized targeting for evaluating of marketing strategy and performance. By analyzing the business model “2W1H” and the propensity model on each business model, both the validation of the model based on training model and test data set, and the validation of actual marketing activities, it has been proven that predictive analytics plays a vital role in the implementation of travelers’ purchasing behavioral targeting in marketing.