The fiercely competitive hospitality industry has recently woken up to the benefits of a data-driven modus operandi. Agile industry players have already started using Big Data insights to improve customer relationships, create more effective marketing strategies as well as gain valuable marketplace insights. All these have helped reap rich dividends by improving customer experience and building brand loyalty, substantially increasing margins.
But despite the obvious benefits, many establishments in the hospitality sphere have bucked the trend and abstained from investing in Big Data technologies. This is more prevalent within the smaller hospitality sphere due to cost concerns and the overwhelming nature of Big Data, leaving them mulling over how to take the plunge. This blog provides a quick look at how to leverage Big Data and gain maximum benefit out of Advanced Analytics in different areas.
Customer Relationship Management (CRM)
Transactional customer data along with unstructured feedback, such as customer sentiment data from Facebook, Twitter and other social media channels as well as customer comments and reviews on rating sites, are veritable treasure troves that can provide valuable insights into customer behavior and preferences. Scaling the data to unlock valuable insights, however, is a daunting task given the sheer volume, variety and the pace at which it grows.
To tackle the challenge, we suggest you start with a proof-of-concept project to see results within a short time span. If it turns out to be viable, you can gradually deploy Data Analytics on a larger scale.
For example, an enterprise can begin by deploying analytics to all the data it has aggregated from its core customers belonging to a specific income group. With the insights gained from this exercise, highly personalized offers can be made by hotels and travel companies using a combination of discounts, services and facilities. If it helps to boost bookings, tourists and travellers in different income brackets can be gradually targeted using similar techniques.
Marketing strategies can include advertising, marketing and email campaigns, customizing web and social content for different groups, and other promotional offers. Big Data has a huge role to play in this direction. Using Data Analytics you can discover patterns in how customers research and book hotel accommodation and other services linked to their travel. Leveraging these insights, marketing strategies can be formulated for each target group and an optimal marketing spend can be allocated to different marketing channels.
Furthermore, predictive analytics can be leveraged to increase or decrease prices depending on the analysis of current data and multiple factors like weather, local events, holidays and the number of expected travellers. It can also help stem losses arising from capacity constraints. With data collected from social media feeds, user-generated content sites, reservation and booking logs, call center logs, emails and other sources, demand can be accurately predicted so that your company is better prepared to deal with it.
Room for More
The hospitality sector markets itself aggressively. From mobile technology to Big Data analytics, it has left no stone unturned in trying to exploit new avenues to reach out to customers, both existing and potential. To a great extent it has paid off by building brand loyalty and customer engagement, thereby boosting growth and revenue. However, the rapidly changing dynamics of this sector means there is always room for more. In order to stay competitive, successful companies today are realizing it’s not just about price and quality but the whole end-to-end experience and flexibility.
Learn more about how we have helped many Travel and Hospitality companies stay on top. Go to our case studies.