Data, information, statistics, etc., play an important role in decision-making at any company. Through data, we can not only accurately assess the direction we should take, but we can also substantiate it. But how can a hotel optimize its data?
Learning how to optimize hotel data is very important. Below, we’ll share some strategies that will help you do just that. This way, you’ll be able to make better use of all the information and data available online—data that’s just waiting to be used to inform your decision-making.
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What is Big Data?
According to experts, Big Data is the vast collection of data found on the internet. It consists of all the information generated by users—from the photos you upload to social media, to the pages you follow, to what you search for on Google. All of this feeds into this massive body of data.
The sheer volume of this information is such that it can be broken down into a smaller set. This set is known as “Small Data.” It is, essentially, a subset of Big Data. And it can be narrowed down, for example, to a segment such as hotels in a specific city or country.
How can a hotel use data to its advantage?
Optimizing and understanding hotel data involves many things, such as gathering all this information, drawing valuable conclusions, and using them to make decisions. This includes analyzing data related to occupancy, traveler volume, and more. It also includes average nightly rates, competitor data, and so on.
Below are some examples of how to use hotel data optimization—all to benefit your property:
Hotel occupancy data
One of the main uses of Big Data for hotels is analyzing their potential occupancy. Through historical data, for example, they can estimate how many guests they will receive during certain seasons and make decisions based on that, such as raising or lowering rates.
Setting the rates
Another reason why optimizing hotel data is so important is in setting rates. Big Data makes it possible to more accurately estimate average prices in a destination, compare them with occupancy rates, and decide on the best option to increase bookings without sacrificing revenue.
Destination Information
Through big data, it is possible to draw numerous conclusions and gain useful insights to, for example, determine the feasibility of a hotel project or improve marketing campaigns. This is done by analyzing how the destination and its competitors are positioned.
Predictions
Finally, Big Data and hotel data optimization can be used to predict how a hotel or destination will perform in the future. Just look at how Google, in the United States, was able to predict a flu pandemic based solely on its searches.
Information sources for hotel data optimization
A key factor in optimizing hotel data is the source of that information. Some sources you can use include:
Your reservation management platform
The first type of source we come across is internal—for example, your reservation management platform, guest register, or internal records. All of that information is generated by the guests who stay at your hotel.
Social networks
Another source you can use to feed your hotel data optimization system is social media. From Facebook, Instagram, TikTok, or Twitter, you can obtain a wealth of data, for example, on trends, occupancy, market preferences, and other insights.
Search Engines
Our final option is to gather data from search engines—such as Google—where trends and traffic volume can reveal a great deal about a destination and its accommodations. Platforms like Ubersuggest or Google Trends work perfectly for this, as they are simple and free.
How can you optimize hotel data?
Here are some strategies you can follow to achieve optimization that will help you make informed decisions:
Determine Your Goals
The first step toward truly optimizing your hotel data is to determine how you will use that information. For example, if you want to track your occupancy rate, the data you collect should be geared toward that goal.
Choose sources that are relevant to those goals
Once you know how you’ll use the data—for example, for your hotel’s digital marketing—you’ll be able to choose relevant and useful sources of information. This is because not all sources work for every purpose.
Using Data Processing Tools
Okay, so you’ve decided that reports and metrics from OTAs, for example, will be your data source. Now what? Well, the next step is to process that data to draw conclusions. To do this, you can use advanced processing tools that leverage technologies like machine learning—such as Oracle—or you can opt to use AI tools like ChatGPT.
Collect your own data
Of course, one of the best sources of data for any hotel is internal data. That is, all the information you, as the accommodation provider, gather from your guests is the highest quality and most useful data available. This can come from your booking platforms, CRM, social media, messaging, and so on.
Draw conclusions and put them to use!
The final step toward true optimization is to take that data and draw conclusions from it. Based on this, we can make better decisions. For example, if we see a sharp drop in reservations, we can take actions such as launching advertising campaigns or lowering rates.
We can help you optimize your hotel data
. If you want to achieve better results and keep your hotel fully booked, reach out to us! Our team of experts, with extensive experience in the hotel industry, will provide you with the guidance you need to make that happen.
