Data or information is readily available – whatever industry a business may be in. And countless organizations have taken advantage of crunching big data and of analytics solutions to bring in more customers and meet their expectations, keeping them satisfied with the products or service.
The opportunity big data provides is available as well to hotels and other businesses in the hospitality sector. There are millions of travelers in any given day, and hotels are better served utilizing data to gain an understanding of how to bring in these consumers.
A pioneering example of a hotel using data and analytics was during the winter season of 2013-14. During this time, the cancellation rate for flights was roughly 3 percent, standing around 90,000 passengers every day. This meant that hotels close to major airports were presented a distinctly valuable opportunity.
U.S. economy hotel chain Red Roof Inn understood this and had its marketing and analytics team used openly available public data sets to weather conditions and flight cancellations. With the knowledge that stranded passengers would search for nearby accommodation through their mobile devices, the hotel chain launched targeted marketing campaigns that resulted in a 10 percent increase in sales in the specific areas where they deployed the strategy.
Basically, big data and analysis can help hotels understand the preferences and requirements of the customers, formulate optimal pricing, and bring value to clients.