Making Sense of Dark Data in Hospitality
Making Sense of Dark Data in Hospitality
The hotel industry has been collecting tons of data to reach better and serve the guests. Loyalty programs, price comparisons, bookings, locations… The list is endless. Everything is important. Everything matters. This information helps to understand customers better and, eventually, to improve the quality of the service.
Within this environment, one should remember that dark data provides valuable insights. The collection of customer data goes hand-in-hand with a responsibility to safeguard personal information.
Sophisticated technologies used in Big Data Analytics penetrate almost every field. Hotel and the hospitality industry are not an exception. They link innovations to the rising importance of mobile consumption. Hoteliers are developing new ways to engage with customers on smartphones and tablets. Some mobile apps installed on an Android device act as “universal” remote controls. These apps enhance the guest experience, allowing guests to control room services.
Cloud-based services are another primary driver of the hospitality sector. Modern IT leaders develop curated technology portfolios for hospitality-specific goals. One of these services enables the guests to view available rooms and choose the one they prefer to stay in.
Nowadays, the hospitality sector collects vast amounts of data about the customers. Effective data leveraging and deep technical expertise are vital for long-term success. Data leadership is acquiring its shape. Since there’s too much data out there to process, there should be a system for filtering and organizing the data. This system would predict guest behavior by analyzing previous interactions across digital devices.
How Data Leveraging Transforms Hospitality?
Tourism and hospitality have already recognized the need for a customer-centric approach. Now, everything in the industry evolves around the visitors’ needs, desires, and preferences.
Below, you will find the main aspects of digital transformation in the industry:
Customer categorization. The categorization and identification of incoming customers allow us to maximize revenues.
Personalized service. Many hotels are offering customized services to cater to their most demanding customers. In this way, hotels can’t always rely on internal data to predict a customer’s return. Thus, data analysts need to collect data from surrounding and external sources. This concept facilitates identifying travel patterns, habits, and common timeframes.
Social media. Many customers refer to social media for questions, tips, and concerns. The platforms provide an excellent opportunity to connect with consumers in brand-new ways. Hotels compile vast datasets with online search histories, completed bookings on their customers. This data helps the sales managers to create personalized travel experiences.
Yield management. Big data analytics also affects yield management. By calculating the best value of a room and factoring in metrics, hotels will ensure most profits. These metrics include seasonal demands, regular guests, and similar trends.
Descriptive, Predictive, and Prescriptive Analytics as Tools to Forecast Future Events
Descriptive, predictive, and prescriptive analytics are ‘trending topics’ when it comes to hospitality. Their impact is immense and is piercing the entire business organization.
Descriptive analytics serves to extract data from past occurrences and activities. It’s one of the most straightforward and efficient ways of generating actionable data. This method allows us to conduct an in-depth analysis of sales or capital-related metrics.
Predictive analytics uses dark data to try and forecast future outcomes or events. For instance, the process of preparing a hotel for seasonal changes. (e.g., reduction of the staff members’ hours to accommodate the fewer number of reservations).
In prescriptive analytics, one takes advantage of advanced algorithms. The goal is to process dark data and to provide actionable advice. Hence, certain systems provide recommendations to improve service and increase profits. Online reservation systems track guests’ past stays. They generate discount codes for future reservations. Even more, they assemble personalized services and deliver favorite cuisine to the guests.
Big data analytics is about to transform the customer experience within hospitality. It doesn’t happen overnight. Yet, the industry is already making huge steps toward full adoption of dark data and its benefits.
Data leadership transforms the hospitality sector, driven by innovations and data analytics. It changes the way people travel. It modifies the manner hospitality businesses operate heralding the era of absolute digitalization.
Data-driven hotel chains are already adopting long-term strategies for dark data management. Those who are unwilling to embrace the changes might find it hard to compete in the years to come.
The hotels have a wide array of tasks. Some of them are trying to better their offers and to provide personalized services. Others engage with their social media audience, stretching the value of their properties.
Anyway, hoteliers must handle all this data before it has an impact. The information on its own is dormant. It’s neutral and scattered until activated through big data processing and analysis.
The hospitality industry has embarked on the path of dark data. It already has an enviable volume and variety of data to work with. Customers leave a data trail from the moment they book to the moment they check out. The analysts have to do their best to turn that data into actionable insights. The hotels embrace innovations, while customers enjoy satisfying stays and unique experiences.
Becoming data-driven allows us to increase efficiency and sharpen real-time strategies. Dark data brings incredible benefits to all departments, not only marketing and sales. Those who adapt quickly will be leading the industry into the digitalized future.
Dark data allows hotel properties to identify significant patterns and trends. This data is here to stay. It can help you to improve your revenue management and optimize marketing efforts. Until now, analytics dealt with structured data only. The situation is gradually changing now. With the recognition of dark data’s benefits, hospitality will unleash its potential. Dark data will drive innovation and enhance competitiveness in the upcoming data-driven decade!
