How can the use of big data influence the hotel industry in the future?

To have a good relation with you customer you need to know the needs and wants of your customers. Via customer engagement management hotels try to create strategies how to get an established relationship with their guests. With data mining they try to create a better customer intelligence, which  can help them to create their customer engagement strategies. There are many different places from with data can be gathered, that can be analysed by data mining techniques. (Peelen & Beltman, 2013)

Knowledge will give you the power to gain competitive advantage. The more you know about your customers, the better you will service them and meet and even exceed their expectations. Hotels gather quite a lot data about their guests, though they do not always know what they can do with it. There is simply too much data for them to process, which makes data mining quite overwhelming for them. These enormous quantities of data is called ‘big data’.  Recently there are some developments in way to manage big data. Which means that it will be possible to make more sense out of all this data. (Big data needn’t be a big headache: How to tackle mind-blowing amounts of information, 2012)

In the hotel industry and especially luxurious hotels it is important that they exceed the expectations of their customers. A successful big data strategy can lead to an increase in customer satisfaction and can also improve the productivity and efficiency of employees. It will also be a way for hotels to increase their revenue, since they are able to personalize prices and rooms to their guests.  For Example Marriot, the hotel chain, is using big data analytics for a while now to anticipate the best price for their rooms to have optimal occupation rates in their hotels. They use improved algorithms that can handle the data fast and combine various data sets with each other that make it possible to have better insights to improve all levels in decision-making. (van Rijmenam, 2016)

Another Hotel chain that used big data to improve their customer satisfaction is Denihan. This American chain used big data analytics software to increase their profit and revenue for their hotel rooms by combining their own data sets with other data sources like blogs, social networks and review sites. They used likes and dislikes to change their room prices and optimize it. They used this for example during a special event in 2013, where they were able to double their room rates for a week. (van Rijmenam, 2016)

So with the developments in big data analytics will make it possible for the hotel industry to use these data quantities to improve their customer intelligence. With this they can increase customer satisfaction, set optimal rates for their products and services, make their operations more efficient, they will be able to increase employee efficiency and productivity, and more.

 

References

Big data needn’t be a big headache: How to tackle mind-blowing amounts of information. (2012). Strategic Direction, Vol. 28 Iss 8 pp. 22 – 24.

Peelen, E., & Beltman, R. (2013). Customer Relationship Management. United Kingdom: Pearon Education Limited.

van Rijmenam, M. (2016, april 23). Why Hotels Should Apply Big Data Analytics To Provide a Unique Guest Experience. Retrieved from Datafloq: https://datafloq.com/read/hotels-should-apply-big-data-analytics-guest/81

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