How Can You Grow Your Hospitality Business with Data Analytics

In an industry like hospitality that relies heavily on customer satisfaction, data analytics is essential in tracking and analyzing customer behavior. 

 

Data analytics is the process of using algorithms to derive information from raw data. Travel and tourism companies can determine customer preferences through data analytics and create personalized packages or recommendations based on the results.

 

Customized Marketing

Targeted marketing, which prioritizes the needs of customers, is a growing trend in this profession. Studies show that customized email campaigns boost click rates by 41 percent. With data analytics, hotels and resorts can identify which countries and packages attract certain demographics. It is one of the most effective ways hotels can stay on top of trends and adjust their campaigns accordingly.

 

Personalized User Experience

Even if they are just browsing, travelers already form an opinion the moment they enter a company’s website. Data analytics remembers their preferences and creates tailor-made recommendations based on what customers view. Giving users what they want right away increases the chances of booking packages and the likelihood that customers will use the company’s service again in the future.

 

Maintain Loyal Customers

Returning customers like to be treated special. Doing so gives them more incentive to come back to a certain company. It is also in a company’s best interest because repeat customers tend to spend 300 percent more than first-time customers and are more likely to avail of expensive products and services. If a company has data on these repeat customers, then it can create special packages or notify customers of promos on their most-browsed services.

 

Price Management

Data analytics can also help companies optimize their prices and maximize their revenue by tracking peak seasons and top offers. It is becoming an increasingly popular trend in the hospitality industry to personalize offers and prices according to a customer’s spending habits. This also allows hotels to easily sell their rooms even during the off-season.

 

There are numerous benefits to data analytics, but it requires training to use it to its full advantage. Taking business management and hospitality management courses is a great way to learn the trade and how to use gathered data to improve your company.