How data and analytics are changing the hotels industry
06 January 2020
Since the launch of our Hotels Forecast 2019-2020, hoteliers and investors have been increasingly looking at data to find deep insights on current and potential guests. In this blog, we look at the industry benefits of analysing data, what that analysis can show and how hotels can use it to improve performance.
Understand and meet guest expectations in the hotels sector
The UK hotel and hospitality sector caters to hundreds of thousands of guests every day, each with expectations on the quality of rooms and the range and standard of facilities and services. Hotels that can meet or exceed those expectations are more likely to see increased engagement, return business and success.
We are seeing hotels increasingly using data and analytics (whether that’s client feedback or transactional data) to understand their guests better - who they are, what their preferences are and why they choose to stay where they do. They can then use this information to improve guest experience, see which additional services and facilities will continue to drive bookings and customer satisfaction, and how to optimise the positioning of their hotels to best serve the market.
Uncover actionable insights about guests to drive loyalty and repeat stays
The hotel industry is at a distinct advantage in having ready access to an abundance of customer data. Combining internal data (e.g. room bookings, food and drink transactions, CRM activity) with third-party and public data significantly enhances the insight that can be uncovered, allowing hotels to:
- Understand the profile of guests - their age bracket, spending power and preferences, where they come from and the reason for their stay.
- Assess the current tourism landscape and estimate future trends - uncover traveller country of origin, make up of group bookings, growth over time and the type of traveller to inform room configurations, dining and entertainment facilities, price point, marketing and more.
- See a detailed single-guest view - such as spend and transactions per guest across the group, guest loyalty, and frequency and recency of hotel reservations. This information can be used to predict future stays, and improve retention/onsell to existing customers.
- Uncover distinctive consumer behaviours and ensure hotel positioning is adapted and catering to them.
Use guest insights to improve a hotel’s performance
Using these guest insights, hotels can measure their performance to see where to improve. There are four areas where data insight is particularly beneficial for hotels:
- Positioning of offering - use simulations to create data-driven outcomes of different ways of positioning a hotel. This can then be used to optimise hotel format, scale and price point, and marketing and guest service strategies.
- Network analysis - comparing a portfolio of hotels as a whole against the market enables owners and operators to identify where changes to properties will add to, and not cannibalise, existing business.
- Sensitivity modelling - estimate how a change in a profit driver may impact returns.
- Estimation and forecasting - optimise space allocation (e.g. rooms vs event space) and estimate induced the halo effect of induced spend in affiliated/neighbouring merchants caused by the introduction of the hotel.
How we can help
We use a unique combination of data sources - internal and public datasets, UK retail banking data and global travel data - to help find deep insights on guests, understand performance drivers and produce actionable insights to drive profits. Get in touch to see how we can help you adopt a data-driven approach to understand the hotel landscape, who your potential guests are and where they come from.
Make sure you also download our UK Hotels Forecast 2019-2020 to see how you can embrace technology to increase efficiency, reduce processes, manage data and enhance the guest journey.