The significance of big data in the hotel industry

Big data plays a crucial role in the hotel industry by enabling businesses to analyse vast amounts of customer information, market trends and operational insights to make informed business decisions.

By leveraging big data, hoteliers can enhance customer experiences through personalised services, optimise pricing strategies, improve marketing efforts and streamline operations to boost revenue and maintain a competitive edge in the ever-evolving hospitality market

As technology continues to advance, the importance of big data in the hotel industry will only grow, making it a key factor in driving business success. In this article, we explain what big data is and the benefits it brings to hotel businesses all over the world.

What is big data?

‘Big Data’ is the huge volume of information produced by our digital activity in the modern, technological world. In the hospitality industry, this data is helping hoteliers to structure the way they operate, optimise profits and provide the best possible customer service with smart insights generated through structured and unstructured information.

Unstructured data includes social media comments, reviews, video footage, chatbot conversations and even requests made through smart speakers in hotel rooms. Structured data consists of guest logins, check-ins, transactions and booking details.

This information is captured from a wide variety of sources such as phones, computers, sensors, CCTV cameras and even door keycards, to provide tangible insights for decision-makers.

Software like Zonal Hotel Solutions uses intelligent integrations to pull together this big data from all areas of the hospitality business for analysis, helping to shape the business operations and guest experience in real time. Here are the main benefits:

Business Strategy

Clear and engaging graphs and charts create much-needed visuals for business owners and stakeholders to efficiently review any data collected.

With trends and guest preferences clearly set out in front of them, hoteliers are empowered to make strategic decisions and manage revenue effectively. Whether it’s seasonal changes or in response to local events, decision-makers can adjust prices, staffing and marketing activity to reflect what’s happening at that moment, by using real-time information.

For longer-term planning, big data allows hoteliers to accurately forecast for the future using data patterns from past events. For example, room occupancy over the festive period or restaurant profits from Saturday nights. This business intelligence empowers management to tweak staff rotas, change menus, adjust room rates and introduce special offers, months in advance, all in response to accurate analytics.

Customer Experience

When it comes to hospitality, guest experience is the key to business success. Now with valuable insights into guest preferences and behaviours, hoteliers can skilfully forward-plan to provide visitors with what they truly want, when they want it, on a personal basis.

For example, if a guest enjoys visiting the spa throughout their stay, booking and payment data will enable hoteliers to recognise their preferences, providing the opportunity to upsell other spa experiences and offers to them via email or text in the future. This personalised treatment builds trust with guests, who feel acknowledged and valued, rather than sending out one-size-fits-all marketing materials.

Data can be used to apply this approach across the whole hotel; from room service preferences and special allergy requirements to business travel bookings and much more, to boost brand loyalty with guests and increase repeat bookings.

On top of this structured data, social media posts, online feedback and reviews allow hoteliers to better gauge guest sentiment. This anecdotal evidence gives decision-makers more in-depth observations of guests’ likes and dislikes, to make changes and improve future experiences.

Efficient operations

Data can help hoteliers keep on top of their operations and optimise their team’s time. Accurate check-in/check-out information can create more efficient housekeeping routines, by letting staff know which rooms need to be turned over and when, saving precious time and labour costs.

Supply-chain management data streamlines the ordering process for departments across the hotel to reduce waste and keep costs down. For example, accurate stock-take information helps kitchen staff reduce food waste and plan menus around what produce needs to be used.

Likewise, energy-saving software can also collate heating, water and waste data, enabling hoteliers to implement more sustainable systems and achieve environmental targets set out by external governing bodies.

To conclude

As the hospitality industry finds its feet in an uncertain economic landscape, hoteliers and stakeholders must embrace technology to stay afloat amongst the competition.

By harnessing this powerful data that is available to them through smart software such as Zonal, hoteliers can make real changes to optimise their operations, maximise their staff’s time and expertise and give guests the exceptional service and experience they expect from a hotel.