The use of Data Analytics in the hospitality industry

Over the past couple of decades, technology has started to play a major role the hospitality industry.

Service holds the key to success in the hospitality industry and technology has opened up every opportunity to be able to serve the customer better. Data analytics allows hospitality industry to take a data set and perform various comparison studies and calculations to draw out conclusions through the information they contain. This determines whether the company is successful in their marketing campaigns or it can pin point any down falls they may have. 

Here are some hotel chains that are actively using analytics to maximise profits; 

Marriott uses Group Pricing Optimiser (GPO) that works on various price models based on statistics of various market segments. It enables Marriott to sell the way a specific set of customers want to buy. 

Intercontinental Hotel Group (IHG) uses Operational analytics, Advanced analytics and Predictive analytics. They use these to satisfy stakeholders, to better understand customers and to proactively anticipate and get ready for future trends. 

According to reports, Big Data insights can improve the profits of an organisation by 200% if it is used for yield management, sending out personalised offers to customers, managing Omni channels for booking effectively and improving forecasting.

Artificial Intelligence (AI) is already used in various pilot projects across the travel and hospitality industry. Machine learning, natural language processing etc. is revolutionising how the data was used to be interpreted earlier. Customer service both online and offline can get an immense boost to offer personalised and unique service to every customer using the available data. Linking predictive analytics with geolocation data can do wonders for selling recommended products in real-time on-property. This is much more than coupons and promotion. This is about knowing what’s in the mind of the customers and then offering just that.

Here some examples of how data analytics are being used in the hospitality industry, 

Using Predictive analysis for radical personalisation. 

• Better customer support through natural language processing. 
• Connecting guests to internet of things (IoT). 
• Using virtual assistants. 
• Smarter pricing management and better product recommendation using machine learning And many more.

There is a huge number of possibilities using data analytics in the hospitality industry. Data analytics has become one of the biggest job producers in the technology industry. It helps understand the customer better and improve customer experience. So, it all adds to the delight of customers while saving costs.

Arlene Ellis

Co Creation