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Big Data – The Magical Words in the Hotel Industry 

Posted by Karan Iyer on Feb 6, 2020 7:30:00 AM
Karan Iyer

Hoteliers across the globe have begun to see the impact Big Data can have on their revenue intake. From providing an in-depth look into what your current guests are doing within your hotel to what your potential guests are looking for from your hotel, big data opens the door to exactly what your guests want and need.


So, if Big Data provides so much detail about your guests, how does it impact your hotel revenue? Let’s find out!

Guest Segmentation

Your marketing efforts are optimized only when you target the right audience, this is where Big Data steps in. In fact, Big Data helps you to reach your target audience by allowing hotels to segregate their guests into categories and identify key demographics. For example, you can find out which guest drives the most sales; is it the business class, the travelers, the honeymooners, or others? 

By segmenting your target audience, you can invest strategically in time and location-specific marketing. This means you can advertize special offers to customers:

  • at the time they are most likely to see them, or,
  • based on their location.  

Whether you target your campaigns to a specific audience or globally, your conversion rate will automatically improve.

Pricing Strategy and Revenue Management

Big Data can dramatically influence revenue management in the hospitality industry. How? It allows you to identify areas of opportunities and revamp your pricing strategy accordingly. For example, if you see that potential guests show interest in one of your rooms with a terrace garden but end up leaving your website without booking it, you can perhaps lower its price or add an attractive offer to the room. Similarly, you can identify other factors and manage inventory rates to attract bookings. 

Predictive Analysis 

With a wide bank of historical data, hoteliers can identify and examine the key performance metrics and create guest predications. For example, with Big Data you can examine your peak seasons, your most booked rooms, your most beneficial upselling opportunities, and more.

Based on this information, you can easily predict future trends and manage resources as per those trends which can save on costs. For example, you can appoint staff as needed during peak seasons and save on resources when demand is low. This also ensures your venue is creating great customer experience and consequentially increasing.

Targeted Marketing 

Marketing is the main pillar of your hotel brand. It is the way you convey your unique selling proposition to your potential guests. But what if you’re not able to market your brand to the right audience? Big data helps you identify your loyal audience and your potential clients through their activities and booking patterns online. And with the help of this data, you can grab their attention by offering a stay that they are looking for at the right time. All you have to do is capture their needs. So, if your potential guests are looking for a venue with a spa, make sure they see your Google ad with pictures of your hotel and its spa offerings. 

With Big Data, you can optimize room rates, hire staff accordingly, invest strategically in customer experience, build targeted marketing campaigns, and boost your revenue.


Karan Iyer is an end-to-end digital marketer and blogger who inherently understands the hotel industry with his hospitality background. Karan knows how to convert the pain points and challenges of the hotel industry into business opportunities, and that’s what he writes about for his readers. He also shares industry trends, insights and news to help his readers stay up-to-date.

Have a question? We’re always ready to talk.

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Topics: Hospitality marketing, Hospitality managers, Restaurants