The
popularity of data analytics has exceeded encouraging a wide spectrum of
organizations to implement and use innovative technology. In fact, 60% of
business enterprises believe that data analytics have improved their
interaction with customers. Furthermore, the same report says that 41% are
currently using the analytics for customizing the user experience. The hotel
industry is keeping pace with the digital transformation. Leading hotel chains
such as the Intercontinental and Radisson Group have already implemented
analytics and artificial intelligence. And next is your turn to take the
leap.
Big Data and Analytics are Game
Changers
In the
age of digitized technology, all that matters, in the end, is data and numbers.
The hotel industry relies highly upon customer satisfaction. And don’t forget
that Big Data plays a vital role in
understanding and defining customer behavior. This further helps them to offer
personalized services. For instance, an analytics-based survey for the
hospitality industry found that a hotel can earn an additional income of $7 for
each dollar spent on Wi-Fi. Alternately, it gets an extra $30 for
providing a complimentary water bottle.
This is
one of the major reasons why big data and analytics are regarded as game-changers. Hotel managers and industry leaders have been quick to pounce on
data-driven innovation to get more revenue onboard through Digital Marketing Services. It helps to access almost accurate predictive
analysis, data visualization, and data integration. Using these tools you can
strategize plans on how to target customers for the hotel.
Next,
it’s time to manage revenues
It’s
fine that you are using innovative technology to drive revenue to your hotel
business. But you also need to think about managing it. When strategizing a
plan for revenue management, you need to consider the best methodologies about
selling a product or service at the right price to a potential customer.
Revenue Management depends on various Key Performance Indicators (KPIs) such
as-
- Average Daily
Rate (ADR)
- Revenue Per
Available Room (RevPAR)
- Average Occupancy
Rate (AOR)
- Gross
Operating Profit (GOP)
- Gross
Operating Profit Per Available Room (GOPPAR)
Taking these key data metrics into account, the revenue managers can estimate the demand for room and predict customer behavior. This approach is known as dynamic pricing.
According
to a study, the total average daily revenue per day for a full-service hotel is
around $56,472 in comparison to $22,679 for limited-service hotels.
Real-Time
Operational Analytics
The
hotel industry has to work round the clock to generate all kinds of data useful
for business operation and customer satisfaction. This means whether a person
is booking a room or ordering a recipe, you can capture the important data
about the user preference.
Real-time
operational analytics helps to monitor internal processes and evaluate
performance. For instance, some highly advanced hotel groups have started using
iDashboards to get more transparency and
offer improved service.
The
iDashboard is a platform that helps in visualizing the data. Users can use this
platform for retrieving and transferring data from various sources into a
single dashboard to prepare graphic reports. The platform offers support to a
wide range of charts, pies, and diagrams apart from providing customized
layouts. The iDashboards Data Hub helps in automating the process of preparing
data via drag-and-drop ETL (Exact
Transform Load).
Furthermore, hoteliers
can conduct a competitive business analysis, usher in brand reputation, and
find out areas where the hotel is lagging behind.
Use Data
Analytics for Marketing Campaigns
Hotel
groups like Starwood have already started using big data for marketing campaigns. It utilizes data analytics to send promotional notifications to the
guests before their arrival and during their stay. The data can provide
important information to the customers regarding the popular tourist spots,
shopping hubs, car rentals, and weather updates.
It also
keeps customers informed about the latest offers and discounts on room tariffs
and rebates on a meal at a hotel restaurant. This further helps to create
loyalty programs to refine the level of personalization. Some hotels such
as the Red Roof Inn have increased their annual revenue through the weather
update information. Using the data visualization, it estimates the number of flights that
would be canceled in a particular region. It then uses the target search
advertising to offer room to specific customers.
Role of
IoT in Streamlining Hotel Industry
Energy
Consumption Management with Smart IoT Solutions
So far, hotels
and even other industries have been searching for a viable solution to reduce
their energy consumption. In fact, it has been found that the U.S.-based hotel
has nearly 6% of its operational costs to pay the utility bills.
Enter
the smart sensor-based IoT technology, which helps to control the expenditure
through energy management. Hotels are moving forward in adopting an innovative
energy-saving technique using cloud software. Smart energy management platforms
along with IoT devices help in collecting vital information on energy usage. In
addition, it also gathers real-time info on temperature, humidity, and air
quality inside the hotel building. It can adjust the heating, ventilation, and
air conditioning based on the weather. It helps hoteliers to efficiently plan
and utilize their energy resources in the best possible way.
IoT
Further Helps with Predictive Maintenance
One of
the other ways through which IoT has helped hotels to save on their expenses is
by offering predictive maintenance using sensor data. It keeps an eye on the
condition of the various appliances to check its normal functioning and predict
a snag. The system was able to identify any malfunctioning in advance and
inform the technicians to get it repaired. This allows hotels to curtail their
maintenance costs and improve the lifespan of the appliance.
Innovations
Introduced by Artificial Intelligence
AI-Powered
Smart Rooms at the hotel
Besides,
the Internet of Things, Artificial Intelligence powered rooms have also gained
the attention of the customers. The Intercontinental Group has already begun
venturing into the area by offering AI enabled rooms in China’s Beijing and
Guangzhou. It empowers customers to give simple commands such as controlling
the temperature of the air conditioner, thermostat, and lighting conditions.
According to predictions, the number of hotels and travel business enterprises
integrating AI technology will increase by 30% in 2019.
In
fact, there are hotels such as Aloft Santa Clara in San Jose that facilitate
the customers to book their rooms through the voice-assisted system. It has a
customized Aloft App that enables users to interact with their rooms. In
addition, voice assistant software like Siri allows them to play their favorite
music besides performing a number of tasks.
Check-in
Through Facial Recognition
Hotels
are planning to introduce the facility for facial recognition, which lets
customers skip activities like filling up their registration forms and
submitting their identity proofs at the reception desk. Renowned hotel group
Marriott International has already started trials and testing facial
recognition check-ins in a couple of places. The scanning of your facial print
will help you pay your hotel bill. In fact, this AI-based innovation has
reduced the cost by 13% and increased revenue by 10%.
Robots
Serving Guests
So far
the housekeeping department has been serving the guests. But it seems that soon
they will be replaced by robots. For instance, Aloft Hotels have introduced a
robot housekeeping staff named Botlr who is an expert in doing various tasks.
It can serve food and provide all other items that guests require during their
stay at the hotel. Users just need to place an order using the SPG app via
smartphones.
The
Final Words
The
hotel industry is already transcending to the next level of technology. Data
Analytics, the Internet of Things, and Artificial Intelligence are moving ahead
to reap the joint benefits. It has automated about 73% of the manual
activities, along with reducing the overall cost expenditure and increment in
the revenues.
If
you want to comprehensively utilize the various facets of digital
transformation in hospitality and upscale profit, then hotel analytics
solutions are the right choice.
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