Big Data in Hospitality

Big Data In Hospitality 

(scnsoft.com, 2020)

What is Big data ?

Big data is a collection of data in large quantity that is stored and analyzed systematically. This data is so big that our traditional data analyzing applications and hardware is unable to process it. Let's just say it is a spreadsheet containing everything and anything that you can think of like passport information, shopping history, taste preference, medical history, hotel booking etc. This is done so that we can reveal and understand patterns and connections which will then improve most human activities with great efficiency and effectively.

How is the Hospitality Industry affected?

oecd.org, 2020

Everyone in this era of technology is affected by Big Data especially the in-Hospitality industry. With the help of big data, we can now determine who wants what and when they want it and where they want it with high accuracy based on a statistical research or an algorithm based on our historical decisions. Because of the ever-changing trends on hospitality like higher expectations and demands by clients or guest it this change in the hospitality industry is inevitable. In terms of marketing and advertising, we can now understand clients/ customers in a more detailed way than ever before.

What are the effects of Big Data in the Hospitality Industry?

1. Revenue Management Strategy

Using Big Data, hotel revenue management is not just about selling the right product at the right market instead it's more of optimizing demand and availability of the product (Cantarella, S., 2018). Indeed, big data can provide a good revenue management strategy for the hoteliers as they have a great opportunity in identifying the demand of the consumers and making it available as part of their products and services. Data can also provide a more accurate forecast that can help the hoteliers to have a better decision making in managing the business.

2. Target Market 

google image, 2020

One of the main advantages of big data is targeting your customers. Big data can provide hoteliers information of their current and future market. Data provides crucial aspects of the consumers including the demographic, geographic location and even data of their interaction. Data can define your audience and their preferences. In addition, this information can also provide insights on the current customers and continue meeting their demands and needs (Sterl, M., 2018). Big data can be used to gain and retain consumers. It has valuable information that can be used as an advantage to set targets for certain products and services. Let say a hotel is planning to invest in a new location, by analyzing the different data available they can easily identify the target market, wants and needs of the consumer in that area. This data will set them to meet the ambiance, price range and type of service a niche of consumers.

3. Customer Experience

google image, 2020

Data and information can also improve hoteliers' customer experience. Big data gathers real information of the consumers behaviour, preference, wants, needs and product satisfaction which is essential knowledge to improve what can be offered to consumers (Sterl, M., 2018). On this point, the data collected is used to improve client satisfaction and overall experience. If clients demand for a high-speed internet/wifi or complete gym amenities which upon providing can earn customer satisfaction, referral and loyalty.

4. Competitors

Data is not just about customers and your company; another important aspect is the information about the competitors. Hotelier’s can get used to different data and knowledge to have an idea of what their competitors are doing (Sterl, M., 2018). Thus making the competition tight and businesses become better and better.

5. Innovation

google image, 2020

Data serves as the “business intelligence prediction”, in which it serves as a tool in understanding different business strategies that can be used in the future particularly innovation. This holds significant potential of business and product line expansion including making a more strategic way of targeting the customers and improving their customer experience (Sterl, M., 2018). Innovative ideas will really help to bust the sales and customer satisfaction in the hotelier industry.

6.       The Other side

Like any other actions or innovations Big data also serves a double edge. The issue is not coming from the data itself but what companies will do with the data that was gathered. If you may notice in the recent times that whenever you go to the internet the adds that you receive are more accurate now than before that no matter how you hide from it, it will try to sell you something that is in relation to your browsing history, sex, approximate age as well as where you live etc. Yes, everything and anything is now affected by big data and there is a high chance that a lot of jobs will be replaced with AI in the future. People’s decisions are based on experience and intuition or our brain making statistical calculation and providing hypothesis and with the help of big data we can now make decisions more accurately than ever before. Just think about driving where you must read the environment and react to it imagine how much input that is on our brains. Now, think about the autonomous cars that we are seeing in the recent years. This car is now safer, faster and more efficient than your average driver which could replace jobs like uber drivers.

What do you think of Big data? Will privacy be a thing of the past? Will it make our life better?

 

References:

Cantarella, S., (2018). From Gut Feeling to Facts Based. Retrieve on 17 February 2020 from https://www.revenueacrobats.com/en/big-data-and-hotel-revenue-management/

Sterl, M., (2018). The Benefits of Big Data: Targeting Customers. Retrieve on 17 February 2020 from https://www.cloudoptik.com/the-benefits-of-big-data-targeting-customers/

oecd.org (2020). Data- driven innovation for growth and well-being. Retrieve on 17 February 2020 from https://www.oecd.org/sti/ieconomy/data-driven-innovation.htm

Simplilearn (2019). Big Data in 5 Minutes | What is Big DAta? | Introduction to Big Data | Big Data Explained | Simplilearn. Retrieve on 18 February 2020 from https://youtu.be/bAyrObl7TYE

google.com (2020) Retrieve on 18 February 2020 from https://www.google.com/search?q=revenue&tbm=isch&ved=2ahUKEwjh7dfootvnAhWHE6wKHUVvACcQ2-cCegQIABAA&oq=revenue&gs_l=img.3...9637.9637..9744...0.0..0.0.0.......0....1..gws-wiz-img.4ZTipK06kQg&ei=XO9LXuHPAYensAXF3oG4Ag&bih=623&biw=905&client=firefox-b-d#imgrc=Ze-6F-gQM_wFFM

google.com (2020) Retrieve on 18 February 2020 from https://www.google.com/search?q=target+market&client=firefox-b-d&channel=trow2&sxsrf=ACYBGNS5btfZdqMfsrvzOg-_4SwNXj4Y8g:1582034975134&source=lnms&tbm=isch&sa=X&ved=2ahUKEwjY89vFo9vnAhUKd98KHcu4DggQ_AUoAXoECBEQAw&biw=905&bih=623#imgrc=dQE4UuFLQ6buvM

google.com (2020) Retrieve on 18 February 2020 from https://www.blogger.com/blogger.g?blogID=5900551073273749132#editor/target=post;postID=2981520092689540295

google.com (2020) Retrieve on 18 February 2020 from https://www.google.com/search?q=Innovation&tbm=isch&ved=2ahUKEwi3463dpNvnAhUDZK0KHR9EDS8Q2-cCegQIABAA&oq=Innovation&gs_l=img.3..35i39j0i67l9.18580.18580..18789...0.0..0.95.95.1......0....1..gws-wiz-img._ssFcuYutCM&ei=XfFLXvfACIPItQWfiLX4Ag&bih=623&biw=905&client=firefox-b-d#imgrc=SZy-BbU41C6XjM&imgdii=FxIg5xX4sGCTbM