THE INTEGRATION EQUATION
Experts quickly point to the tremendous benefits that an integrated platform would yield , namely the ability to custom-market to guests with a level of personalization unattainable today . However , despite momentum in that direction by hotel companies ’ developers and vendors , the hotel industry still has a long road ahead before fully integrated systems dominate the landscape .
“ Nobody has figured out how to make use of big data because just integrating big data and doing nothing with it is nonsense ,” says Max Starkov , president and CEO of HeBS Digital , New
York City . “ All of the systems live in complete isolation of each other , or if they pass some sort of information , it ’ s very rudimentary , very one-sided .”
However , some hotel companies are making steps toward integration by pulling data out of their internal systems . Louvre Hotels Group is using a proprietary data warehouse to both store and clean data arriving from the chain ’ s PMS , CRS and POS systems . Then , it imports that data into the CRM system to be used for coordinated marketing efforts .
“ To integrate all this data , we use a specific data warehouse that is quite unique ,” says Francoise Houdebine , Louvre ’ s vice president of sales and marketing . “ At the hotel level , we have one big issue to solve : the de-multiplication of profiles that are created every day . Through this warehouse , we have the ability to de-multiply these profiles and make sure we are not sending the same message to the same clients . The main objective is to make sure that we ’ ve got clean data .”
Destination Hotels & Resorts , Englewood , Colorado , is overhauling its CRM system to include a cloud-based , real-time functionality that integrates not only the traditional “ how I like my eggs ” data , but pulls in everything from guests ’ social feeds to post-stay surveys .
“ WE HAVE THE ABILITY TO DE-MULTIPLY THESE PROFILES AND MAKE SURE WE ARE NOT SENDING THE SAME MESSAGE TO THE SAME CLIENTS . THE MAIN OBJECTIVE IS TO MAKE SURE THAT WE ’ VE GOT CLEAN DATA .”
– FRANCOISE HOUDEBINE , LOUVRE HOTELS GROUP
Other hotel companies have upgraded multiple systems in recent years to make sure new platforms were as open to future integration as possible . One example is Shangri-La Hotels and Resorts , which has seen a sizeable improvement in data flow since building its own points-based guest retention system within its CRS , which also connects to the PMS . Shangri-La is already tracking a strong ROI from its overall CRM efforts , thanks in part to the high-level of personalization the semi-integrated system affords .
“ We made a conscious effort to develop a loyalty system integrated within the CRS ,” says Wee Kee Ng , vice president of loyalty and partner marketing for Shangri-La . “ We use Opera , so we have PMS and CRS using one platform ; my membership system also rests on this platform . The advantage is you can have real-time points redemption . Redemption reservations can also be done anywhere at any hotel , because the PMS can also access the membership system . There is no integration required , because it is all one system .” app and Wi-Fi registration at the properties . The company also conducts data-collection campaigns and is targeting 500,000 new email addresses through the latest of these ventures .
“ We have been able to really multiply the size of the database and the number of campaigns ,” says Francoise Houdebine , Louvre ’ s vice president of sales and marketing . “ Today , compared to last year , we have already analyzed that we have been able to multiply by four the revenue that is generated through the different campaigns we have done .”
Data-collection practices common in North America and Europe are being taken up elsewhere in the world . Shangri-La Hotels and Resorts , Hong Kong , is learning that if it can find creative ways to encourage guests to join its loyalty clubs , its company data warehouse will swell , offering information that can be ultimately repackaged into a customized guest experience .
“ One of the biggest changes we made — and it ’ s common for hotels in the U . S ., but not in Asia — is we require registration for promotions ,” says Wee Kee Ng , vice president of loyalty and partner marketing for Shangri-La . “ In Asia , people are not used to having to register for promotions , but if you don ’ t do that , you ’ re just rewarding people who may not know about other promotions , like double or triple points . It has given us a much higher ROI because of the fewer amount of points we need to give out to those who have not registered .” One channel that remains underutilized by hotel companies for data collection despite the rush to develop them is
50 HOTELS December 2013 www . hotelsmag . com