Data analytics is impacting the hospitality industry – how?
As the world continues to move towards greater connectivity and synchronisation, the role of data will continue to play an important role in facilitating this trend. Across many industries, data analytics has been a driving force behind businesses leveraging these trends in order to stay competitive and enjoy greater returns. The hospitality industry is no different on this front.
With tens of millions of tourists and travellers moving around each day, there’s a staggering amount of data that businesses operating within the hospitality industry can use. Take Australia, for example, which averaged over 8 million international tourists last year – almost all of whom contributed directly to the local hospitality industry. Factoring in domestic tourism and individuals visiting hospitality businesses for a variety of reasons and this number amounts to a significant proportion of the country’s economy.
With more businesses popping up, the hospitality market is rapidly getting saturated and businesses require the slightest competitive advantage to stay ahead or, at the very least, stay on course. Leveraging the right data analytics will provide this edge.
All this talk about the power of data analytics begs the questions – How exactly is data analytics impacting the hospitality industry and in what ways is this taking place? How can businesses take advantage of their data to drive unprecedented results? In the following sections, this is precisely what we dive into.
Cost management via data analytics
Running and managing your own establishment can be a very costly endeavour. After all, in order to ensure your clients enjoy the best services, you’ve got to invest substantially in your facilities and maintenance costs. Around 60-70% of all costs in the hospitality industry are directly linked to energy-related expenditure, which means minor tactical adjustments into how you, your staff, and your clientele consume energy can cut costs significantly.
Leveraging powerful data analytics platforms like SAS software and the knowledge of expert data consultants, significant insights can be gauged to ensure maximum savings. Modern software solutions facilitate opportunities that allow hotels, for example, to develop building profiles and adjust energy consumption based on weather patterns, time of day, and where the energy is sourced from (the grid or on-site battery sources).
Tailored marketing and engagement
One of the most critical elements of operating in the modern business world is the ability to adapt and tailor messaging uniquely to each of your clients. With the explosion of omnichannel marketing, which we addressed in a previous blog, businesses are hard-pressed to break things down to the most granular levels. This is what customers expect. If you run a bar that offers specials for spirits ranging from Vodka to Whisky to Rum, a whisky connoisseur will only want to hear about the whisky deals and none of the others.
A powerful data analytics platform will tell you precisely who your customers are, what services/offers they prefer, and precisely how they like to be engaged. Going in this extra step and truly make or break how successfully you will attract new customers while maintaining existing ones – not to mention staving off your competition.
Predictive analytics in preparation for the future
One area in which SAS software has a prominent position is in driving the power of predictive analytics. With the emergence of SAS Viya, many SAS users are being introduced to the value and benefits of such technology.
Predictive analytics has grown to such an extent that it is now capable of leveraging existing data to predict whether a client, for example, what time a client expects their morning cup of copy or what type of drink a specific customer drinks and on what day. Similarly, AI-embedded systems are also equipped with the capacity to streamline internal operations like room cleaning where centralisation of data can inform an establishment’s housekeeping unit when a room is up for cleaning.
Ultimately, as the data we leverage continues to evolve both in quantity and complexity so will our ability to leverage it holistically in our decision-making processes. As predictive analytics and artificial intelligence continue to improve, expect many more changes on this front.
In addition to being an official reseller of world-renowned SAS software, our team at Selerity also comprises experts of support SAS services in the form of administration, installation, and hosting services.
If you would like to know more about our SAS services, our company and our work with SAS, in addition to how you can leverage our SAS administration, installation, and hosting services, feel free to reach out to us or stay tuned to this feed.