The hospitality industry is one of the largest industries globally, and generates massive revenue each year. In 2016 alone, the industry reported earnings of $4 Tn, and it is said this revenue will grow exponentially each year. The holy grail of the hospitality business is customer satisfaction, and the end goal is to increase business profitability.
The changing digital landscape and the ever-evolving consumer preferences have led to differentiation in service offerings in the hospitality industry, which are focused towards improving the customers’ quality of life. To keep up with the customer expectations, the hospitality industry has to rely heavily on Big Data, which is no longer a futuristic technology trend, but a reality that helps you grow into a profitable business.
With data-driven insights, the hospitality industry can strategically create personalized and innovative offering to enhance the customer experience. Incorporating the insights into your strategy, be it business or marketing can help you create offering that tend to establish connect with your customers.
Benefits of Using Big Data
Big Data insights can help maximize the potential of your hotel, and improve the customer experience, thus increasing customer retention. We have seen 200% rise in occupancy levels with the apt inclusion of Big Data insights in your corporate strategy.
Revenue growth and competitive advantages are benefits of using Big Data in your strategies. Let’s have a quick look at benefits of using Big Data insights when defining strategies for your hotel.
With Big Data insights, you can get your hands on time-trend analysis, which will help you understand which events or seasons will affect your occupancy levels. You can predict booking trends as well as cancellation behaviors of the end customer. This will help you stay prepared with marketing strategies, and the effective strategies that will cater to customer satisfaction, thus helping you retain them.
Expense Management made Better
When you enter innovation or expansion of the hotel, you will see a lot of costs piling up. Running a hotel is as expensive as it can be, and managing your expenses is important to see a growth in the revenues. The prediction of occupancy rates with Big Data insights, helps the hotels over schedule or under-schedule the staff, and thus helps them manage the costs. You can save on utilities and other expenses during off-peak seasons.
Effective Marketing Strategies
With Big Data insights, you understand your customer better. You know what they are looking for, and how they would react to a particular service or product offering. Creating marketing campaigns and integrating marketing strategies becomes easy because you have an understanding of the end customer, and what they are looking for.
Improved Yield Management
The perfect room priced perfectly is what every hotel wants to achieve. They want to make sure they get proper rates for the room they have given out for occupancy. With travel review sites, the hotels can get their hands on massive data that can help them understand the end customer. The price-value combination for the customers can also be understood with the CRM and loyalty programs that run in your hotels. The agile analytics in the hotel industry helps yield out flexible management, personalized for the end customer.
To understand the customer, look no further than the paths traversed by the customer which in your digital age is the social media. To know what the customer wants, is looking out for and needs at this time, the social networking sites will help you best. Mine through this data to reap in benefits. The behavioral motivators and complete customer awareness will help in creating long-term strategies.
Leveraging Big Data
As discussed earlier, the customer expectations and their needs are changing with time. It’s time hotels use Big Data to understand the customers and personalize the offerings accordingly. With personalization, you can expect to exceed customer expectations by offering them enhanced experience.
Here are a few ways to leverage Big Data in the hotel industry
You have huge amounts of data available at your disposal that can tell you more about what your customer is looking out for, and what they need. This can help you personalize the deals, discounts and service offerings to cater to their needs. With the right data and analysis, you can send emails that are relevant to the customers, offering them just what they are looking for and improve your chances of conversion rate. Data is received not from bookings or stays alone but from what the customer is looking at online. The data from all possible areas will benefit marketers
Seamless Omni-Channel Experience
Most consumers use different devices to complete their research and their purchase. If they are researching on the mobile, they may complete their shopping with a tablet and so on. Switching devices is not uncommon in this digital era where multiple devices are available with a single person. You will need to integrate cross-channel data that is available, and offer a seamless & consistent experience across the different channels. You will need to understand their behavior across the different channels for a more personalized interaction across the various channels.
Anticipate the Guest’s Needs
At a time when a traveler is booking a place to stay, they are looking to have their needs met. You need to anticipate what the guest wants even before they check-in, so that you have it ready in your capacity. With Big Data analytics, you can anticipate their needs, and personalize their travel experience. Understand the data that points out to the guest’s needs and wants, and offer innovative and highly capable hospitality experience to make their stay exceed their expectations.
Marketing is important if you want to increase the occupancy rates for your hotel. With Big Data analytics you can understand the amenities that will attract the customer, and accordingly sell your hotel rooms to the potential for increased conversion. While selling the amenities directly makes sense, with Big Data you can also gather enough data to upsell the premium services in your hotel for better and definite conversions. Insights will help understand the attractions that will gather your potential’s interests and help you market those to them.
Big Data analytics can help you offer personalized attractions and services that can enhance their overall experience. Your ultimate goal to increase your profitability and enhance customer satisfaction is achieved with the improved experience.
Silver Touch offers capable Big Data solutions that take care of your data from storage to retrieval to analysis. We help gather insights that can help improve your services and offerings. Get in touch with us at email@example.com to know more about our Travel hospitality IT solutions.