Technology

Global study reveals how big data will transform the hotel industry

11 Jul, 2013 By: Esther Hertzfeld
 


An independent global study, "At the Big Data Crossroads: Turning towards a smarter travel experience," reveals how the hospitality industry is being transformed by big data. Hotels, travel agencies and other industry players are unlocking the power of big data to dramatically improve products and services, enhancing their competitive position and benefiting customers.

Senior executives at more than 20 companies in the travel industry, including Fairmont Hotels and Resorts, Marriott International and KAYAK, have contributed to the study, providing operational and technical insights about big data adoption. Hotels are pioneers in this respect; many are already embracing big data to enhance their financial performance, and a more distinctive experience for hotel guests is on the horizon.

Key findings about big data for hotels include:

•Enhanced revenue management: Hotels recognize that data analytics are helpful in establishing the optimal price for rooms and ensuring that as few as possible are empty. Hotel chain Marriott takes this approach further, using big data for price optimization in restaurants, catering, and meeting spaces too.

•Well-informed investment decisions: The hotel sector often employs the ‘test and learn’ approach to determine what kinds of capital investments are worthwhile. Testing investments such as new conference facilities on a small scale, before deciding whether or not to authorize a full rollout, prevents costly mistakes.

•Better relationships with hotel guests: When customer data is aggregated, instead of being fragmented across a hotel’s various divisions, the analytical insights lead to better marketing and customer service. Marriott uses analytical approaches to the offers it makes to frequent customers, and to understand their likelihood of staying with the hotel chain.

The study is sponsored by Amadeus, a technology partner for the global travel industry. Its author, Thomas H. Davenport, is a Visiting Professor at Harvard Business School and the President’s Distinguished Professor of Information Technology and Management at Babson College.

To get a copy of the study, visit

http://2013.amadeusblog.com/wp-content/uploads/2013/06/Amadeus-Big-Data-Report.pdf.

Topic : Amadeus, Big Data
External Source : Amadeus

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