The importance of Data Analytics in the hospitality sector.

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Understanding customer needs and wants, is a key aspect of any business. In the last few years, data analytics has played a major role in understanding these needs especially in the hospitality sector. By using data analysis tools such as Google Analytics, hotels can gain an understanding of customer behaviours and feedback on the positives and negatives of the business. Through the use of data analytics, they can make predictions that will help the hotel in the future. 

In the hospitality sector, it is extremely competitive so it is important to stand out from the crowd and create an enjoyable experience that will result in returning customers. Data analytics will help hotels gain insights that will enable them to understand their areas of improvement, manage revenues, predict current demands in the industry and competitive analysis and much more.


Through analysis of this data, they can make predictions that will help businesses with forecasting and improving their business by understanding; 

  • Their customer needs and wants.
  • The positives and negatives of their business and to then put a strategy in place to improve their hotel to eliminate the negatives aspects of the business.
  • Data analysis will be cost efficient for the hotel as they will know what type of marketing they need for the business and target their customer directly. 
  • Feedback about the hotel staff and services. 

With this information, hotel owners can improve their services and provide guests better experiences. By using data analytics for hotels, new perspectives can be generated in the hospitality industry. Hoteliers can discover new and better ways to leverage big data for attracting customers and increasing sales. 


Customer needs and wants:

To be profitable, hotels need to increase the loyalty 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 the spa facilities 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.


The right room at the right rate

Data analysis offers hotels the possibility to take revenue management a giant leap forward and start offering truly personalised prices and rooms to guests. According to some industry studies, the hotel chain Marriot has been using Big Data Analytics to start predicting the optimal price of its rooms to fill its hotels. They do this by using improved revenue management algorithms that can deal with data a lot faster, by combining different data sets and making these insights available to all levels to improve decision-making.





The concept of big data analytics is transforming the way businesses perform their key functions. For the hospitality industry, there are a lot of datasets around and understanding what each type does and how it can benefit the business remains a real challenge. The data available in this sector is huge, and that is why there is immense potential and opportunity available. Therefor it is important for the hospitality sector to continue to use these data analysis tools to help they businesses succeed and move forward. 


References:

https://www.managedoutsource.com/blog/eight-ways-which-big-data-analytics-may-impact-hotel-industry/







Arlene Bourke

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