The Tipping Point of 2024: Data Takes Center Stage As the New Currency for Hospitality
2024 marks a tipping point for the hospitality industry - it's the year in which we witnessed a pivotal transformation where data has all but surpassed even dollars as the primary currency. It empowers informed decision-making, elevates operational efficiency, and guides budget plans. Without reliable data, hotel executives risk navigating blindly through an increasingly intricate and competitive landscape—a scenario that's not only irksome but downright dangerous and commercially reckless.
Although the sector has long been amassing immense volumes of data, the challenge lies in transforming this wealth into actionable insights that meet the expectations of both guests and hoteliers alike.
A key advantage of data collection is the deep understanding it provides of guest preferences and expectations. Hotels have routinely compiled data on aspects like room preferences and spending patterns. However, true value is unearthed when this data is leveraged to create bespoke guest experiences. Imagine the elevated satisfaction of a guest who finds their preferred high-floor room, away from elevators, already secured upon arrival.
It’s essential to cultivate a unified guest profile to track and adjust preferences, ensuring that personalized services are consistently delivered, nurturing guest loyalty. Yet, many hotels grapple with effectively implementing these insights, leading to inconsistent service quality despite the surplus of data.
Automation serves as a catalyst in crafting smooth guest interactions. Today, guests desire uncomplicated encounters—from check-ins to service requests, and check-outs—all managed through their mobile devices, avoiding the front desk whenever possible. Yet, the advantages of automation extend beyond sheer convenience, as it fulfills core guest expectations.
To function within this system, acquiring key data is vital. Hotels must accurately capture data, ensuring seamless integration into pertinent systems to uplift the guest experience. However, possessing data is merely a starting point—its integration and organization are crucial to harnessing its full capabilities.
A prevalent obstacle within the hospitality sector is isolated data pockets in separate silos, leading to inefficient systems that fail to communicate effectively. This fragmentation obstructs hotels from gaining comprehensive operational and guest insights. Thus, the trend has shifted towards constructing unified data lakes or warehouses, amalgamating data from varied sources to facilitate streamlined management and analytics.
Extracting and interpreting data efficiently is pivotal in unlocking its value. Ratifying technologies in AI and data streaming empower hotels to process and respond to data in real time, enhancing agility and decision-making efficiency. For instance, when a booking is canceled, automated systems can instantly recalibrate availability and pricing sans manual involvement.
In the current climate, data emerges as a crucial asset for hoteliers. By keenly assessing guest data, establishments can evaluate individual guest value, customizing their provisions accordingly. Through loyalty programs or personalized promotions, deploying data ensures the right experience is crafted for the right guest at the optimal moment, thereby optimizing profitability.
AI is positioned as a game-changing technology, making data more accessible and actionable for hospitality enterprises. However, AI's efficacy is contingent upon quality data input, underlining the necessity of clean, organized data collection to effectively apply AI.
As we anticipate the future, data's influence on the hospitality industry is set to soar. In the coming 12 to 24 months, hotels will continue to innovate in data collection, classification, and deployment to enhance guest experiences. Future guests will likely assume greater command over their hotel interactions through mobile and digital technologies.
Furthermore, it's imperative for hotels to prepare their infrastructure for the expanding data and automation requisites. As the industry wrestles with limited resources, reliance on data-driven automation will be vital in sustaining seamless service despite constraints.
Data transcends being merely an operational tool; it has become a foundational pillar of success in the hospitality realm. As data collection intensifies, the ability to swiftly analyze and act on it will be pivotal in delivering the customized, hassle-free experiences that today's guests demand. With continuous advancements in AI and automation, the hospitality sector's future is inextricably linked to its prowess in extracting the full potential from data.
About Infor
Infor is a global leader in business cloud software specialized by industry. We develop complete solutions for our focus industries. Infor's mission-critical enterprise applications and services are designed to deliver sustainable operational advantages with security and faster time to value. Over 60,000 organizations in more than 175 countries rely on Infor's 17,000 employees to help achieve their business goals. As a Koch company, our financial strength, ownership structure, and long-term view empower us to foster enduring, mutually beneficial relationships with our customers. Visit www.infor.com.
Aaron Stein
Sr. Director, Global Campaigns
Infor
