What is Big Data

Big data is the complex data sets generated by your reservation systems, social media, website analytics, loyalty programs, smart devices, and guest feedback. Understanding and utilizing this data can improve operations, help target your marketing, and improve customer service.

There are four main types of big data: 

Descriptive data tells you what happened in the past. This statistical data type provides context and visual aids, including graphs, charts, financial reports, timelines, and more, to help your team interpret information.

Diagnostic analysis explains why something happened and includes data discovery and mining. Diagnostic analysis helps you draw actionable insights from the data to inform better decision-making.

Predictive data tells you what is likely to happen in the future. Predictive analytics considers critical trends and patterns and applies them to other data to predict what will happen next.

Prescriptive data helps determine what actions you should take based on the other three. It suggests various courses of action and outlines the potential implications for each. It provides recommendations on the best actions for your desired outcome, from sales strategies and pricing to resource allocation and staffing goals. Prescriptive analytics empower you to make data-driven decisions.

The analytics from your big data is a powerful tool for hotels. More is better here. This information will help you make better financial, staffing, and marketing decisions and clarify risk assessments. 

 

Ways to Utilize Big Data 

Improve Operations

• Track key performance indicators (KPIs) such as occupancy rate, average daily rate, and revenue per room. Identify what’s working and what needs improvement.
• Improve revenue management by analyzing historical booking patterns, market trends, and competitor rates to optimize pricing and inventory management in real-time.
• Hotels can analyze operational data, such as housekeeping schedules, maintenance logs, and energy consumption patterns.
• Analyze guest behavior and understand what guests want and need.
• Better understand the interdependencies among people and processes.
• Strengthen security and enhance safety, including data from CCTV footage. Identify suspicious transactional activity to minimize financial losses.

Enhance Marketing

• Develop detailed customer profiles.
• Create targeted marketing campaigns and track their effectiveness.
• Create personalized marketing experiences and build relationships with guests.
• Detailed customer understanding enhances trust in your brand.

Improve Customer Service

• Identify guests at risk of churn and take steps to retain them.
• Resolve guest complaints quickly and efficiently to improve customer satisfaction and reputation management.
• Create personalized guest experiences, improve loyalty programs, and make guests feel valued.

 

Where to Mine Your Big Data

Big data comes from many sources. Make sure you’re tapping into all of them.

• Internal systems include customer databases, transaction processing systems, emails, documents, and network and server log files 
• Machine-generated data such as sensor data from manufacturing machines, industrial equipment, and ‘Internet of Things’ smart devices like thermostats, lights, security sensors, 
• Website analytics, SEO
• Social media to stay aware of social media trends, posts, reviews, and tags. 
• Data from mobile apps, such as texts, phone calls, emails, photos, videos, and searches 
• External data on customers, financial markets, weather, traffic conditions, geographic information, local events and other hospitality offerings
• Publicly available data like local tourism trends, seasonal fluctuations, weather data, local events, travel restrictions, competitor pricing, and online reviews from platforms like TripAdvisor
• Use AI to analyze large amounts of guest data

Big data is a valuable asset and gives hotels a significant competitive advantage. Make sure you have the proper tools to mine it. Utilize robust systems and software geared to hotel management that are fully integrated and optimized for seamless data flow. And keep them current.

References

How Big Data and Analytics are Transforming the Hospitality Industry

Descriptive analytics: Everything you need to know.