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Hospitality Analytics:
How Data Can Make
Hotels Smarter
The hospitality industry is rich with guest and market-
place data, but it faces challenges in putting that data
to use in the form of revenue-driving analytics. We look
at key use cases for data in the hotel space — featur-
ing experts from small hotels to large — and consider
the future of data in terms of education, quality, busi-
ness culture, resource allotment, and the rising call for
third-party partnerships to put hospitality leadership
in charge of the data it already owns.
If you have any questions about the report
please contact trends@skift.com.
Skift Team + SnapShot
www.skift.com
SnapShot + Skift Present:
www.snapshot.travel
2
Useful. Simplified.
Hotel Analytics.
www.snapshot.travel/skift
GET EARLY ACCESS
Hospitality Analytics: How Data Can Make Hotels Smarter SKIFT REPORT 2015
3
It began with a problem.
Each day, hotels collect loads of data—from their PMS, reservation systems, and
POS systems, among many others—and each day, they’re left sorting through
mountains of data, searching for a nugget of actionable information. Well, it’s
2015. The age of “Big Data” and “The Internet of Everything.” It should be easy
for hotels to understand their data, to make intelligent and informed decisions
for their business, yet it’s not. Instead, hoteliers are left with huge, unwieldy
spreadsheets, information overload, and worst of all, irrelevant, static data.
We had to do something about that.
Backed by years of experience in hospitality and hotel tech, David Turnbull,
founder of Yeeld Solutions, and Michael Heinze, creator of HSBi and hetras,
came together to create the first comprehensive Hotel Analytics dashboard
of its kind. A tool not only for power-users, but one that could help every
hotel in the world tame their data and transform their business.
With board members like citizenM’s Michael Levie and Lennert De Jong,
SnapShot was destined to innovate. And following initial seed investments
by STR, STR Global, and Shiji Networks, SnapShot raised a second round of
25 million euros via Shiji Networks, allowing SnapShot to build an expansive
platform that makes data and analytics available to every hotel from thousands
of rooms down to a handful.
Well, it’s been an amazing beginning,
but we’re just getting started. It’s time
to make Big Data work for hotels of
every size.
Stay tuned to watch our story unfold.
About us
The nature of guest data, how it is aggregated, and how it is analyzed
in the hospitality industry has changed. At one time the realm of the in-
room survey card and the checkout questionnaire, the digital space has
plugged web- and mobile-savvy travelers into a fluid and ever-growing
process of communicating what works — and what doesn’t work —
about each stay.
Furthermore, data surrounding the state of the hospitality market —
from room rates to inventory to ancillary — is fueling a massive resource
that marketing and operations can access, analyze, and use.
While hotels have much in the way of available and accessible data,
it is not always a resource that hospitality is using to its best advantage,
however.
At large-scale hotels, the focus is on investment in data-analytics infra-
structure. Heads of companies such as The Rezidor Hotel Group want to
see free, high-quality Wi-Fi become a standard part of that infrastruc-
ture so that management can serve — and gather data about — guests in
the moment. They also want to replace the prospect of costly in-house
information-technology centers needed to drive data gathering, storage,
and analysis with more cost-efficient and nimble third-party provider
partnerships. And they want to claw back some percentage of the data
that they give away to valuable, but at times revenue-shrinking, part-
ners in the online travel agency space.
Expansion of data use is also a goal for large companies such as In-
terContinental Hotels Group, where the opportunity exists to leverage
data and guest tracking. The goal is to create increasingly personalized
and timely marketing touch points with travelers. But IHG sees data as
necessary to competing with other players in the marketplace as well.
It is a lens for acquiring more granular perspectives into pricing, help-
ing them to better compete in an increasingly complex ecosystem of
channels and potentially shifting parity structures.
Smaller-scale hotels see the value of mining data to align their prop-
erties even more closely with demographics. Rather than large-scale
Executive summary
Hospitality Analytics: How Data Can Make Hotels Smarter SKIFT REPORT 2015
4
segmentation, they are pursuing specific consumer types and then
diving deep into data-driven monitoring and services to track and meet
the demands of finite traveler categories. It is a model larger brands also
emulate, especially recently, in a noted shift to niche collections. The
hurdles to success, leaders explain across companies of all size, how-
ever, include education around the technology and potential resistance
to breaking free of traditional models.
Other approaches among smaller hotel brands include hybrid data/
human-resource models: i.e. staff interacting with guests and then
supplying narratives and opportunities as data to social-media and
marketing programs. Beyond customer relations, hotel companies such
as 25hours Hotels are putting data to use in mapping the sources of
their bookings, assessing the costs of acquiring guests, and optimizing
revenue in those ways.
Common themes across all examples are future-minded. The role of
data in the hotel industry relies upon leadership’s willingness to solve
challenges around training and data quality, around industry culture
and resource allotment, and its ability to address evolving strategies
around what data suggests a property or collection of properties can
mean to guests and guest types.
Increasingly, in light of the resources needed to achieve the promise
of data analytics in the hospitality space, hoteliers are discussing the
power of the future partnership in supplying data solutions to proper-
ties, companies, and brands.
Hospitality Analytics: How Data Can Make Hotels Smarter SKIFT REPORT 2015
5
Table of contents
About Skift
Skift is a travel intel-
ligence company that
offers news, data, and
services to professionals
in travel and professional
travelers, to help them
make smart decisions
about travel.
Skift is the business of
travel.
Visit skift.com for more.
About Us 3
Executive Summary 4
Table of Contents 6
Introduction: guests, data, and the hotel industry 7
	 Roots of guest data
	 Hospitality and digital data
Large-scale hotels and the push for greater data engagement 11
	 Rezidor and the drive to engage with data (and partnerships)
	 IHG sees pathways to loyalty and further personalization
Data use cases among smaller hotel companies 14
	 Citizen M builds its niche with guest data
	 25hours Hotels walks a line between old and new approaches
Industry-wide next steps: education,
data quality, and partnerships forming the future 17
	 Education and competency around data in the hospitality space
	 Data and hospitality: a future for partnerships
Insights and strategies: further considerations of data and hospitality 19
	 Data as a design problem
	 The IT challenge: complex changes
	 Automation is key to the IT solution for hotel data infrastructure
	 Hotels and balanced data expectations
	 Data interpretation and taking care with data insights
Q&A: David Turnbull and Michael Heinz look to the future 21
Endnotes 23
About Skift 24
Hospitality Analytics: How Data Can Make Hotels Smarter SKIFT REPORT 2015
6

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Free Report: Hospitality Analytics - How Data Can Make Hotels Smarter

  • 1. Hospitality Analytics: How Data Can Make Hotels Smarter The hospitality industry is rich with guest and market- place data, but it faces challenges in putting that data to use in the form of revenue-driving analytics. We look at key use cases for data in the hotel space — featur- ing experts from small hotels to large — and consider the future of data in terms of education, quality, busi- ness culture, resource allotment, and the rising call for third-party partnerships to put hospitality leadership in charge of the data it already owns. If you have any questions about the report please contact trends@skift.com. Skift Team + SnapShot www.skift.com SnapShot + Skift Present: www.snapshot.travel
  • 3. Hospitality Analytics: How Data Can Make Hotels Smarter SKIFT REPORT 2015 3 It began with a problem. Each day, hotels collect loads of data—from their PMS, reservation systems, and POS systems, among many others—and each day, they’re left sorting through mountains of data, searching for a nugget of actionable information. Well, it’s 2015. The age of “Big Data” and “The Internet of Everything.” It should be easy for hotels to understand their data, to make intelligent and informed decisions for their business, yet it’s not. Instead, hoteliers are left with huge, unwieldy spreadsheets, information overload, and worst of all, irrelevant, static data. We had to do something about that. Backed by years of experience in hospitality and hotel tech, David Turnbull, founder of Yeeld Solutions, and Michael Heinze, creator of HSBi and hetras, came together to create the first comprehensive Hotel Analytics dashboard of its kind. A tool not only for power-users, but one that could help every hotel in the world tame their data and transform their business. With board members like citizenM’s Michael Levie and Lennert De Jong, SnapShot was destined to innovate. And following initial seed investments by STR, STR Global, and Shiji Networks, SnapShot raised a second round of 25 million euros via Shiji Networks, allowing SnapShot to build an expansive platform that makes data and analytics available to every hotel from thousands of rooms down to a handful. Well, it’s been an amazing beginning, but we’re just getting started. It’s time to make Big Data work for hotels of every size. Stay tuned to watch our story unfold. About us
  • 4. The nature of guest data, how it is aggregated, and how it is analyzed in the hospitality industry has changed. At one time the realm of the in- room survey card and the checkout questionnaire, the digital space has plugged web- and mobile-savvy travelers into a fluid and ever-growing process of communicating what works — and what doesn’t work — about each stay. Furthermore, data surrounding the state of the hospitality market — from room rates to inventory to ancillary — is fueling a massive resource that marketing and operations can access, analyze, and use. While hotels have much in the way of available and accessible data, it is not always a resource that hospitality is using to its best advantage, however. At large-scale hotels, the focus is on investment in data-analytics infra- structure. Heads of companies such as The Rezidor Hotel Group want to see free, high-quality Wi-Fi become a standard part of that infrastruc- ture so that management can serve — and gather data about — guests in the moment. They also want to replace the prospect of costly in-house information-technology centers needed to drive data gathering, storage, and analysis with more cost-efficient and nimble third-party provider partnerships. And they want to claw back some percentage of the data that they give away to valuable, but at times revenue-shrinking, part- ners in the online travel agency space. Expansion of data use is also a goal for large companies such as In- terContinental Hotels Group, where the opportunity exists to leverage data and guest tracking. The goal is to create increasingly personalized and timely marketing touch points with travelers. But IHG sees data as necessary to competing with other players in the marketplace as well. It is a lens for acquiring more granular perspectives into pricing, help- ing them to better compete in an increasingly complex ecosystem of channels and potentially shifting parity structures. Smaller-scale hotels see the value of mining data to align their prop- erties even more closely with demographics. Rather than large-scale Executive summary Hospitality Analytics: How Data Can Make Hotels Smarter SKIFT REPORT 2015 4
  • 5. segmentation, they are pursuing specific consumer types and then diving deep into data-driven monitoring and services to track and meet the demands of finite traveler categories. It is a model larger brands also emulate, especially recently, in a noted shift to niche collections. The hurdles to success, leaders explain across companies of all size, how- ever, include education around the technology and potential resistance to breaking free of traditional models. Other approaches among smaller hotel brands include hybrid data/ human-resource models: i.e. staff interacting with guests and then supplying narratives and opportunities as data to social-media and marketing programs. Beyond customer relations, hotel companies such as 25hours Hotels are putting data to use in mapping the sources of their bookings, assessing the costs of acquiring guests, and optimizing revenue in those ways. Common themes across all examples are future-minded. The role of data in the hotel industry relies upon leadership’s willingness to solve challenges around training and data quality, around industry culture and resource allotment, and its ability to address evolving strategies around what data suggests a property or collection of properties can mean to guests and guest types. Increasingly, in light of the resources needed to achieve the promise of data analytics in the hospitality space, hoteliers are discussing the power of the future partnership in supplying data solutions to proper- ties, companies, and brands. Hospitality Analytics: How Data Can Make Hotels Smarter SKIFT REPORT 2015 5
  • 6. Table of contents About Skift Skift is a travel intel- ligence company that offers news, data, and services to professionals in travel and professional travelers, to help them make smart decisions about travel. Skift is the business of travel. Visit skift.com for more. About Us 3 Executive Summary 4 Table of Contents 6 Introduction: guests, data, and the hotel industry 7 Roots of guest data Hospitality and digital data Large-scale hotels and the push for greater data engagement 11 Rezidor and the drive to engage with data (and partnerships) IHG sees pathways to loyalty and further personalization Data use cases among smaller hotel companies 14 Citizen M builds its niche with guest data 25hours Hotels walks a line between old and new approaches Industry-wide next steps: education, data quality, and partnerships forming the future 17 Education and competency around data in the hospitality space Data and hospitality: a future for partnerships Insights and strategies: further considerations of data and hospitality 19 Data as a design problem The IT challenge: complex changes Automation is key to the IT solution for hotel data infrastructure Hotels and balanced data expectations Data interpretation and taking care with data insights Q&A: David Turnbull and Michael Heinz look to the future 21 Endnotes 23 About Skift 24 Hospitality Analytics: How Data Can Make Hotels Smarter SKIFT REPORT 2015 6