Hotel industry is another industry where effective use of analytics can change dramatically how business is run. It is another data rich industry that captures huge volumes of data of different types, including video, audio, and Web data. However, for most hoteliers data remains an underused and under-appreciated asset. Hoteliers capture loyalty information, for example, but few go beyond loyalty tier in how they consistently view and take action with their guests. With analytical exploitation of their data, hoteliers can go beyond their traditional loyalty programs and deepen their knowledge of guests in order to develop a more granular understanding of segment behavior, needs, and expectations; identify profitable customer segments and their buying preferences; and identify opportunities to attract new guests. But all that starts with having clear customer-driven vision, before embarking on Integrating and standardizing guest data from multiple channels, systems and properties into a unified, accurate view of all interacÂtions.
Next phase is using analytics to segment guests according to booking trends, behavior and other factors in order to reveal their likelihood to respond to promotions and emerging travel trends. It is vitally important for hoteliers to be able to understand guest preferences (locations, activities, and room types), purchase behavior (frequency, length of stay, time of year) and profit potential in order to increase the brand loyalty and wallet share of their most valuable guests. Focusing on the wrong guests reduces profitability across the enterprise. For example, if a hotel targeted guests who would likely take advantage of spa services, golf and restaurants, rather than guests who only generate room nights, they could significantly increase revenues and profitability.
To maximize profits, hotels need to increase the loyalty and wallet share of their most valuable guests by marketing to their preferences and encouraging repeat visits. Focusing on the wrong guests reduces profitability across the enterprise. For example, if a hotel targeted guests who would likely take advantage of spa services, golf and restaurants, rather than guests who only generate room nights, they could significantly increase revenues and profitability. Unfortunately, money often gets spent on blanket campaigns that don’t target individual guests or segments with offers they’re most likely to respond to. As a result, guests may feel that the hotel doesn’t care about them, or simply doesn’t offer services designed to meet their needs. It becomes easy for those guests to switch to a competing hotel.
Unfortunately, money often gets spent on blanket campaigns that don’t target individual guests or segments with offers they’re most likely to respond to. As a result, guests may feel that the hotel doesn’t care about them, or simply doesn’t offer services designed to meet their needs. It becomes easy for those guests to switch to a competing hotel.
