What Are Big Data Analytics?
You´ve probably heard about Big Data Analytics before, but for those who haven´t let us break it down for you; Big Data analytics is the process of collecting, processing and analysing large sets of implicated data, in order to discover patterns and predictions from useful information.
Businesses harness big data analytics to uncover new and transformative insights and information in large and varied datasets. Big Data offers many benefits for people seeking big data analytics, including the prediction of market trends, identification of data flow correlations and the understanding of your clients preferences in more detail which help make quicker and more informed decisions.
Big Data Statistics
Did you know…?
The big data analytics market is set to reach $103 billion by 2023
By 2020, every person will generate 1.7 megabytes in just a second
Internet users generate about 2.5 quintillion bytes of data each day
97.2% of organizations are investing in big data and AI
How are Big Data and Analytics Transforming the Hotel World as We Know it?
What does “Big Data” actually mean? Is it a set of tools or is it a product? Do only “big” enterprises have “big” data?
Big Data is a term that refers to a huge volume of data – both unstructured as well as structured. What is important here is not only the volume of data but what the companies are doing with the data. Big Data can be examined for insights that lead to strategic business moves. By analyzing this data, you can find important answers that enable smart decision making, new product development and optimized offerings as well as time and cost reductions.
Big data is here to stay in the hospitality industry. The hospitality sectors cater to millions upon millions of travellers a day, each with their own expectations, needs and desires of what they want out of their trip. Do you want your guests to leave satisfied with their stay and return to your establishment? Then the key is to meet these specefic needs and expectations, and in order to do this, increasingly more hoteliers are turning to advanced solutions and data analyitcs as the key to keeping their customers happy and turning them into long term clients. The problem many hotels will find, is how to make the most out of their data.
There are many large hotel chains already actively embracing the benefits of Big Data; for example
Marriott hotels use a Group Pricing Optimiser (GPO), which works with various price models based on statistics of different market segments. This allows Marriott to sell the way a specific set of customers want to buy and meet specific needs.
5 Reasons Why Hotels Need Big Data
- Yield Management. This term is nothing new in the hotel industry. Offering different room rates to clients to ensure companies reach the optimal price is something hotels have been doing for years. With Big Data, hotels can take revenue management to the next level and offer increasingly more personalized prices to guests. This has been boosted by the growth in booking websites and comparison sites like Trip Advisor and social media networks.
A May 2014 Yahoo survey recorded that clients preferred personalized ads, as 50% found them more engaging and 49% found them more time-saving. By delivering highly targeted campaigns, you can drive higher ROI.
- Mobile Data. With the continuos mobile first revolution, companies find themselves investing more time into developing user friendly apps to book their rooms, explore their services and offer a generally easier and more personalised service. For example, imagine your hotels housekeeping department being equipped with smart devices allowing them to know, in real time, when you prefer an extra pillow or an extra light in your room. It places the user-friendly analytics and data into your hotels hands to help improve customer satisfaction and bridges the gap between user and service. Big Data is a blanket term for the technologies and tools employed for gathering, organizing, and analyzing large and diverse data set – to discover market trends, consumer preferences, hidden patterns, correlations between different insights, and much more that could help the company to create more effective marketing strategies.There are several Big Data tools in the market used for determining cost efficiency, time management, and analyzing data to bring out valuable business insights. However, the most popular tools include Hadoop, Spark and Hive.
It is estimated that by 2020 the accumulated volume of big data will reach 44 trillion gigabytes, find out more here.
- Overcome Competition. According to the Gartner Hype Cycle for Cloud Computing, Big Data will drive business decisions and outperform competitors. The term “Business as usual” is risky business, especially when the business environment never stops changing. Think of ways to use data that your competitors have not yet mastered. InsideBigData reported that scientists generally agree that the size of the digital universe will double every two years, a 50-fold increase from 2010 to 2020. Harness the power of big data to stay head of competition, like with your social media and website analytics. For example, Google Anayltics analyzes your website data and help you segment out by new and returning visitors and compare different user experiences.The Harvard Business Review found that, of the Fortune 1000 that use big data, the majority say it helps them decrease expenses. Once you begin tracking sales and expense details over the months, you can find patterns. These patterns will tell you the busiest and slowest times of your business so you can make better decisions about employee scheduling, purchasing, and pricing.
“The hotel chain Marriot, that has been using Big Data Analytics to start predicting the optimal prices of its hotels” (Forbes).
- Differentiate Your Consumers. Any hotelier can admit that not all their guests are the same. Some might check in and out without demanding even a smidgen of fuss. While others will invest hundreds of pounds into making the most out of the restaurants, entertainment and activities their hotel has to offer during their stay. For example, business people utilizing the services of a hotel may have specefic needs, they want to get in and out in an effective fashion. If they are happy with the stay, they will probably return. As not to have to invest any more time in finding somewhere better suited. Whereas a family of four who holidays there, who may be enjoying a holiday of a lifetime may not be able to spend like this all the time. The business person may therefore have a higher lifetime value in the eyes of the business. Have you ever considered this? They do this using improved revenue management algorithms that can deal with data faster, by combining different data sets and making these insights available to all levels to optimize decision-making.
- Harness Social Media. In today’s Internet-centric environment online communities have way outweighed the importance of their more traditional counterparts. As many users turn to social media for requests, ideas and concerns, social media allows users to connect with the brand in a new way. Identify new trends, gain insights and make important decisions like which users to target as well as tracking the demographics of them and understanding which social media platforms they are interested in.
Air France for example has compiled datasets with online search histories bookings & airport lounge activities on almost 90 million of ther customers. The data helps officials create customized travel experiences for their frequent guests.