“ Unless you have a very advanced analyst dedicated to sifting through the mess of data , many find themselves unable to pull this data together into something meaningful . This industry , in particular , needs to embrace CRM systems as a required technology in their technology platform to stay abreast of competition .”
– Brigette Pence , red Lion HoteLs corP .
need to rely on vendors and third-party analytics firms to help . While third-party reliance isn ’ t likely to diminish , the lower cost of technology will provide some relief . Not to mention , when used properly , big data can make a significant impact on the bottom line .
“ Traditional revenue management systems have historically driven a 2 % to 4 % RevPAR increase ,” says Patrick Bosworth , co-founder and CEO for Duetto , Las Vegas , Nevada . “[ With data analytics ] hoteliers are seeing a 7 % to 10 % increase in RevPAR due to being able to offer more price points to more customers , and having those prices be driven by deeper insights about demand and about customers .”
And it goes way deeper than pure yield management . When companies use big data for other operations aspects like internal reporting , forecasting , valuation and benchmarking , the returns are also there . If hotel companies can turn those endless reams of data into something useful , virtually all business processes benefit .
“ If you can better predict your demand and get your pricing more accurate , you might make thousands or hundreds of thousands of dollars more by getting that right ,” says Cindy Estis Green , co-founder and CEO of Kalibri Labs , Rockville , Maryland . “ If you predict what your performance will be and get it right , you may save hundreds of thousands in money you didn ’ t have to spend for customer acquisition , your net contribution could be so much higher , which makes asset valuation more effective . And if you want to look at it from an owner ’ s point of view , the multiples on that are huge . You can save a million dollars a year in a medium-sized hotel , and that can translate to a US $ 12 million improvement in valuation . The ROI can be unbelievable .”
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