“How Big Data And Analytics Are Changing Hotels And The Hospitality Industry”

Gary Valinoti

The article “How Big Data And Analytics Are Changing Hotels And The Hospitality Industry” goes over how hotel groups like Red Roof Inn, Marriott, Denihan Hospitality, and Starwood Hotels and Resorts are using big data and analytics on room pricing, personalized marketing campaigns, and determining how much value a certain customer may bring in over a lifetime.

One key point of the article that it brings up that this collection of data and putting it to proper use has had generated more revenue. For Starwood Hotels and Resorts using weather forecasts for their consumer base in the United States to adjust prices and utilize marketing campaigns for their Caribbean resorts has led to a 5% increase of revenue per room. It shows that this data collection has not gone to waste and they are giving context to their data, and having a direct impact on their bottom line. Another key point is the huge impact data collection is having on the marketing capabilities brought up in the article regarding what can bring previous customers back to their hotels, “This involves analyzing all of the information available about customers who are visiting, by gathering customer feedback, transactional activity, use of loyalty programs and bought-in third party demographic data. This is then used to decide whether, for example, an offer of a free restaurant meal, or a ticket for a show at a nearby theatre is more likely to persuade a high lifetime-value customer to make a booking” This is huge in building a rapport with customers and turning them from one-time visitors to lifetime customers. Also these incentives may give off the sense the customers are saving money and make them more likely to spend more money during their stay with their new found savings. Another key point is determining the customer value of each visitor. They are using big data to determine if who their customers and use that to determine the customer’s value.

One area that I think the article did not go enough in depth about is the importance of how are hotels are using this data and utilizing predictive analysis to determine spending habits, possible room preferences, possible points of interests, and more. While the analytics are increasing revenue, they are also improving the consumer experience. In an industry that revolves around hospitality and customer experience, any leg up that a hotel can get on what their customers want during their stay can have a huge impact. I would have also like to have know if hotels with casinos are using big data to pull in new hotel guests and bring back previous hotel guests. Lastly the article does not touch on the massive amount of data that they have on their customers and do not currently have any use of it at the present time. It goes back to the topic of ILM and how long the data is useful or needed.

Sources

Marr, Bernard. "How Big Data And Analytics Are Changing Hotels And The Hospitality Industry." Forbes. Forbes Magazine, 26 Jan. 2016. Web. 06 Feb. 2016.