The future of the travel and tourism industry will be shaped by a range of disruptive themes, with Big Data being one of the themes that will have a significant impact on lodging companies.
Big data refers to large, diverse data sets that, when analysed computationally, can reveal patterns, trends and associations, especially relating to human behaviour and interactions. Today’s digital economy is powered by data. It is produced in abundance by both individuals and enterprises and stored in vast data centres, some of which cover hundreds of thousands of square feet. The opportunities available to those companies that can harness the power of big data are clear and wide-ranging but it is not a one-size-fits-all solution. Instead, businesses need to tailor their approach to their own specific requirements and use cases.
Big data is being used in lodging to improve loyalty and marketing. Online travel agents (OTAs) collect a whole host of different information and are able to use big data analytics to a greater extent than face-to-face travel agents. Lodging companies have been able to disrupt the industry because of their focus on technology.
However, not all companies are equal when it comes to their capabilities and investments in the key themes that matter most to their industry. Understanding how companies are positioned and ranked in the most important themes can be a key leading indicator of their future earnings potential and relative competitive position.
Insights from top ranked companies
Airbnb operates an online platform for hospitality services. The company provides a mobile application that enables users to list, discover and book unique accommodations across the world. The app allows hosts to list their properties for lease and enables guests to rent or lease on a short-term basis, which includes vacation rentals, apartment rentals, homestays, and hotel rooms. The company is one of the biggest users of big data as it determines a suggested price for each listing based on a number of factors including time of year and competitor pricing.
Marriott was one of the first hotel chains to use analytics for revenue management, around 30 years ago. The company invests heavily in big data and analytics. Marriott has enhanced its revenue management capabilities by using a tool called Retail Pricing Optimizer (RPO), which is integrated with the hotel chain’s OneYield revenue management system. RPO uses a market-based analytical methodology which offers a price elasticity model, providing recommendations for the transient segment. One of the tool’s main features is a pricing workbench, consisting of a dashboard helping hotels recognise where opportunities arise by colour-coding them. Furthermore, Marriott uses analytics to understand frequent customers’ behaviour and enrich the products and services offered to them. In addition, the company uses web analytics, A/B, and multivariate testing to boost its website capabilities. Other ways Marriott uses big data are by offering personalised offers depending on which customers visit the website, and by designing a marketing attribution model based on the activity on the website.
Oyo Rooms takes old properties that are struggling to attract visitors and transforms them in a methodical way. Properties include more than 23,000+ hotels in 800+ cities in 18 countries around the world. The company uses data science technology to search for its potential new properties and to understand how users are interacting with the app.
To further understand the key themes and technologies disrupting the travel and tourism industry, access GlobalData’s latest thematic research report on Big Data in Travel and Tourism.
- Four Seasons
- Wyndham Hotels & Resorts
- Best Western
- Mandarin Oriental
- Shanghai Jin Jiang
- Radisson Hotel Group
- Huazhu Group
- Travelodge Hotels