Three Reasons Hotels Need Big Data Analytics

In our recent Tnooz webinar, we explored how Big Data analytics, including rich guest profiles, will transform hospitality. Here are three reasons why your hotel needs the right data analytics tools.

1. Big Data will help you outperform your competitors.

Companies that utilize Big Data to drive business decisions will outperform competitors by 20% in virtually every financial metric, according to the Gartner Hype Cycle for Cloud Computing, 2012. In the hotel industry, data analytics and detailed guest profiles can be used in numerous different ways to improve business operations, occupancy rates and yield.

2. Actionable insights for marketing yield better outcomes.

Big Data is ideally suited to drive sales growth through more effective marketing. A May 2014 Yahoo survey found that consumers preferred personalized ads, finding them more engaging [54 percent], educational [52 percent], time-saving [49 percent] and memorable [45 percent] than general ads. By delivering highly targeted campaigns, you will drive higher ROI on your marketing budget.

3. Big Data will help you create customized experiences (and benefit your operations).

Ultimately, it all comes down to the guest experience. Hotels today are starting to offer further customization. For example, the Peabody in Orlando has reinvented their mini-bar, allowing guests to request items they would prefer. They also offer a program called “Feed the Fridge” which allows guests to order themed bundles like a “Night at the Movies” package with popcorn and sodas, or a “Tiny Bubbles” package for business travelers wanting to celebrate with colleagues. Not only do the guests appreciate being able to select their favorites, but the hotel has found that they have a greater turn-over of stock, with less throw-away of unpopular items.

But, what if you had access to information like a certain guest’s preferences before he or she even checked in? With targeted guest marketing a personalized guest experience, this is totally possible. Hotels just need an easy way for all employees to record and access information about guests. With data from online reviews, social media profiles, and interactions with staff on previous stays, hotels could offer guests what they want before they even know they want it.

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