How Data Analytics is Revolutionizing the Hotel Industry

Are you a hotelier willing to distinguish your property from the market by offering the most unique experience to your guests? Then, consider implementing data analytics strategies that will allow you to delight your customers through offering personalized service. As the hotel industry is highly customer-centered, you must constantly assess your guest’s needs and preferences. Nowadays, big data technologies exist and artificial intelligence is becoming very popular in the industry to gain insights to improve your hotel operations.

What is Data Analytics in the Hotel Industry?

Data analytics can be defined by the data that you can collect to gain a better understanding of your business and industry’s trends as well as customers in-depth. Through the efficient use of data gathered, executives are able to make better decisions to ensure a high customer satisfaction and beat the competition. Hotel professionals usually collect data through transactional data, guest’s profiles, survey information and industry report’s metrics such as STR reports (Links to an external site.).

Why is Data Analytics Important to Ensure your Hotel’s Success?

There is a high homogeneity in the hotel industry which makes it necessary for executives to implement strategies to compete in this intense market. As a consequence, it is important nowadays for hotel professionals to be familiar with the latest technologies and methods used for efficient data analytics. In this hyper-competitive environment, big data analytics is an important way to differentiate from other properties. Indeed, a proper analysis of data can allow you to positively reshape your hotel’s strategy through improving your customer’s loyalty and brand’s image.

The example of Mariott International – the Hospitality Leader in Data Analytics

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Mariott International strengthened its position as a leader in the luxury hotel chains market in part thanks to sustaining powerful data analytics strategies. The company has proved to understand well the use of data to guide decision and support innovation. In fact, the company has access to resources with very high-quality data allowing the team to ensure the smoothest and most memorable travel’s experience for its guests.

According to the data organization Datumize (Links to an external site.), Mariott International mainly uses data analytics for tracking the competition, finding other revenue streams other than rooms such as new amenities and improving customer’s satisfaction.

Besides, through the use of the latest revenue management techniques with access to vast amount of data metrics, the company is able to effectively forecast the demand and identify consumer behaviors. The organization uses popular industry’s reports including the ones from Smith Travel Research mentioned previously. The data in those reports allow to compare hotel’s performance with a competitive set in terms of the main KPIs (Occupancy, Average Daily Rate and Revenue per Available Rooms). In this way, the company is able  to think about solutions to outperform the competition operating in the same areas and targeting similar guests.

Recently, the hotel chain partnered with Amazon in order to install the digital assistant Alexa specifically designed for the hotel industry in some of its propertie’s rooms. This innovative technology not only eases the hotel’s operators duties, but it also allows to gather tons of information as far as concern customer’s desires and preferences. Subsequently, the company is able to offer engaging and unique experience to its guests.

To conclude, once you get familiar with the data analytics best practices, you will be able to ensure a long term-growth for your hotel through creating significant value for your guests. Also, the insights gained from data analytics will help you enhance your operational productivity which will contribute in leaving your guests with long-lasting memories from their stays.  Through the smart use of data analytics, your team will be able to gain competitive advantage and achieve higher profitability.