How Data Analytics, IoT and Artificial Intelligence Is Streamlining the Hotel Industry?


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, 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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