Investing in Business Intelligence: Transforming Hospitality Through Data
In the ever-evolving hospitality industry, the use of business intelligence is becoming increasingly important. Hoteliers are recognizing the immense value that data brings to their business, from understanding drivers of demand to developing effective revenue management strategies. But the big question is – how willing are they to invest in new technology?
Investment trends and priorities
I’m pleased to see that in our latest report, "Travel Technology Investment Trends 2024," nearly all hoteliers are planning to increase their technology spend this year, with a significant focus on business intelligence tools. The report, based on a survey of global hospitality leaders, reveals that 94% of IT decision-makers are planning to invest in technology, with 70% planning moderate investments and 24% planning heavy investments.
When asked to rate their top business objectives that are driving technology investment, 41% of hoteliers cited their desire to increase occupancy. Survey respondents also said data fragmentation (33%), data efficiency (32%), and data integrity (30%) are among the biggest challenges faced in business intelligence today. These are issues that can be significantly improved upon with the right technology.
How does data drive success?
The most effective business intelligence (BI) solutions provide the freshest, most comprehensive, accurate data—data extracted directly from the source to ensure accuracy. This includes both historical and forward-looking, on-the-books data, allowing hoteliers to understand anticipated travel volumes and plan revenue, sales, marketing, and operational strategies accordingly. By leveraging these extensive data sets, hoteliers gain deeper insights into market trends, competitive performance and customer preferences, leading to better decision-making. Our survey confirms this, with 35% of hoteliers rating forward trends data as the most important insights from their BI solutions.
Generative Artificial Intelligence (GenAI) is another hot topic in business intelligence, with virtually all hoteliers (98%) recognizing that AI has the potential to bring significant benefits to their businesses. This is why the most innovative BI solutions in the market are launching GenAI capabilities like chatbots to help hoteliers – even those unfamiliar with complex data and reporting – access information at scale and speed. By entering a basic query into the chatbot (like a search for bookings, average daily rate, or revenue pipeline), anyone – from a marketing manager to operations manager – can instantly receive an answer in supported languages, removing the need for a manual search. This is a gamechanger for hoteliers with limited time and staff, allowing team members to access critical information to make informed decisions faster.
The power of data to boost efficiency and increase revenue
The benefits of business intelligence are tangible. For example, the Inn at the Market in Seattle used a suite of solutions including Amadeus' business intelligence to significantly increase its revenue by making strategic decisions based on the accurate and fresh data. Between January 2023 and August 2023, the boutique hotel saw a return on investment (ROI) of over 500%, an average increase of $48 to the average daily rate (ADR), and revenue surpassing the full year 2022.
In another instance, the El Conquistador Resort in Puerto Rico used insights from Amadeus’ business intelligence solutions in combination with digital media and web to establish a strategy to attract the right guests, drive more direct business, and bring in ancillary revenue. Equipped with better data, the independent property grew its direct booking rate to 46% over the past few years and brought its ADR back to 2019 levels.
As the hospitality industry progresses, the value of business intelligence tools continues to rise. By embracing these tools, hoteliers can achieve a remarkable competitive advantage, enhance their business strategies, and drive revenue growth.
For more information on the latest trends and insights, download the full "Travel Technology Investment Trends 2024" report.
About Amadeus
Amadeus powers more personalized and authentic travel experiences. Our solutions are designed to enrich every stage of the traveller journey and help hospitality providers acquire, service, and retain guests by profitably driving demand and converting them into loyal fans.
Backed by over 30 years of experience, we design open, cutting-edge software to provide the most efficient, trusted, and reliable systems for our customers. With experts in 175+ countries, we have a deep understanding of the hospitality industry and a desire to enable our hotel partners to create memorable guest experiences.
To find out more about Amadeus, visit www.amadeus-hospitality.com.
