Over the past couple of decades, technology has started to play a major role even in labour-intensive industries like the hospitality industry. In this article, we have discussed data analytics in the hospitality industry, how it can be used for profitability and facts associated with data analytics.

Service holds the key to success in the hospitality industry and technology has opened up every opportunity to be able to serve the customer better.

The Internet of Things (IoT) is changing the game across industries and will be instrumental in maximising growth for the hospitality industry in the years to come.

So, welcome to the magical world of analytics.

Using Data Analytics in the Hospitality Industry for more Profits


What is Data Analytics?

Curious about Data Analytics in the Hospitality Industry? Let’s dive into the facts and benefits! 

  1. Personalized Guest Experiences: Data analytics helps hotels understand guest preferences better, leading to tailor-made experiences. For instance, Hilton uses data to anticipate guest needs, enhancing satisfaction and loyalty.
  2. Optimized Pricing Strategies: Hotels like Marriott leverage data analytics to adjust room rates dynamically, maximizing revenue. By analyzing market trends and demand patterns, they ensure competitive pricing without sacrificing profits.
  3. Operational Efficiency: Data analytics streamlines operations, improving efficiency and reducing costs. Holiday Inn Express utilizes data to optimize housekeeping schedules, ensuring rooms are ready for guests promptly, and boosting productivity.
  4. Predictive Maintenance: Utilizing IoT sensors and predictive analytics, hotels like Hyatt predict equipment failures before they occur. This proactive approach minimizes downtime, enhances guest comfort, and saves on maintenance expenses.
  5. Enhanced Marketing Campaigns: Data analytics empowers hotels to craft targeted hospitality marketing campaigns. Radisson Blu, for example, analyzes guest demographics and behaviour to deliver personalized promotions, driving bookings and revenue. 

In 2024 and beyond, data analytics will continue to revolutionize the hospitality industry, unlocking new opportunities for growth and innovation.

Simply said, you take a data set and perform various comparison studies and calculations to draw out conclusions through the information they contain.

Back in the day, it used to be a tedious process but technology has made it mainstream in recent years and now AI is taking it a notch further.

So, what can data analytics achieve in today’s era and the future? How can data analytics further be used in the hospitality industry?

Before we dwell deeper into the topic, have a look at the image.

                                                                    Image by Spring People blog.

The image gives a fair idea of how much impact data analytics can have on various industries.

Discussing specifically for the benefit of the hospitality industry now.

How can data analytics benefit the hospitality industry?

Analytics India Magazine in its study and research on data analytics decodes how various top Hotel chains in the world use analytics to their benefit.

To quote their study in a nutshell here’s how a couple of hotel chains are actively using analytics to maximise profits.

  • Marriott uses a Group Pricing Optimiser (GPO) that works on various price models based on statistics of various market segments. It enables Marriott to sell the way a specific set of customers want to buy. The study on using analytics further explores this topic and more.
  • Intercontinental Hotel Group (IHG) uses Operational analytics, Advanced analytics and Predictive analytics. They use these to satisfy stakeholders, to better understand customers and to proactively anticipate and get ready for future trends.

Let’s move towards some actionable approaches in data analytics to benefit the hospitality industry.

1. Leveraging Big Data for Forecasting and personalised offers

Big Data insights can multiply the profits of Hotels and hospitality organisations.

This can be used for forecasting analytics, better expense management and greater customer satisfaction.

According to reports, Big Data insights can improve the profits of an organisation by 200% if it is used for yield management, sending out personalised offers to customers, managing Omni channels for booking effectively and improving forecasting.

Hotels can use Big data analytics to maximise revenue.

Check out these details in the image below on Big Data layers.

This can help integrate various channels and open up new avenues for revenue creation for the hotel industry.


2. Artificial intelligence and data analytics- Rise of Robots in the Hospitality Industry

Artificial Intelligence (AI) is already used in various pilot projects across the travel and hospitality industry.

Artificial intelligence in the hospitality industry is already a game-changer. Data analytics in the hospitality industry is going to be another game-changer for growth strategy.

Machine learning, natural language processing etc. is revolutionising how the data was used to be interpreted earlier.

Customer service both online and offline can get an immense boost to offer personalised and unique service to every customer using the available data.

Unique customer service and better forecasting will make features like virtual butler a commodity in the hotel industry in future.

3. Customised product recommendations in real-time

According to the article by McKinsey and Company, data analytics can help hospitality organisations upsell conveniently.

Linking predictive analytics with geolocation data can do wonders for selling recommended products in real-time on-property.

This is much more than coupons and promotions.

This is about knowing what’s in the minds of the customers and then offering just that.

How cool, isn’t it?

Article by McKinsey & Company, the famous consulting firm, explains how data analytics can help the hospitality and travel industry immensely. Some of the key areas that have been explored in the article are:

  • Using Predictive Analysis for radical personalisation
  • Better customer support through natural language processing
  • Connecting guests to the Internet of Things (IoT)
  • Using virtual assistants
  • Smarter pricing management and better product recommendations using machine learning

And many more. There is a huge number of possibilities for using data analytics in the hospitality industry.

4. Chatbots to use data analytics to drive constant growth and revenue

Data can be used in a magical way to predict and then offer service in a most personalised manner.

An article at HospitalityNet sums up this beautifully through an image beautifully on how the Hotel is converting to a Botel in the 21st century.

With Siri and Alexa already at our service in various hotels, chatbots are going to venture into voice-activated services and digital assistance for a better user experience.

Robots in the Hospitality industry are going to be more common than we can think of.

A lot of hotels have already started using them as pilot projects and have achieved success and rave reviews from customers so far.


Here you go. Some of the facts and benefits of data analytics for the growth of hospitality businesses.

Cloud computing, Blockchain, Artificial Intelligence and Data Analytics continue to define the latest hospitality technology trends for sure.

Data analytics has become one of the biggest job producers in the technology industry. It helps understand the customer better and improve customer experience. So, it all adds to the delight of customers while saving costs.

Win-win for all. Isn’t it? That’s the technology and innovation for you.

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