Companies leading the pack globally for revenue growth are creating customer experiences based on data-driven insight. Research shows us that organisations that leverage customer behavioural insights outperform peers by 85 percent in sales growth and more than 25 percent in gross margin. Over the last few years, more and more hospitality companies have turned to data and analytics to better anticipate and meet guest needs and preferences. The trend towards hyper-personalisation has exhibited prominent staying power across all touch points of the guest experience as guests continue to demand more from their travel experiences. Of course, this shift towards a more personalised and insight-driven hospitality experience could not be accomplished with the help of actionable data and guest-centric technology. If personalisation and long-term guest loyalty are the destination, data-driven technology represents the path hoteliers need to take.
Meetings and events business represents up to 60% of overall revenue for many hotels. Meetings alone generated 300 million room nights annually, representing nearly $50 billion of spending on accommodation. This makes data an integral piece of the operational puzzle for hoteliers, especially when we look to the group business segment, and long-term revenue management and optimisation. Using technology to unlock the full potential of data, hoteliers can better identify trends, personalise the guest experience, make predictions, remain responsive, make better decisions and anticipate demand. Not yet convinced? Let us break it down for you.
1. Investing in the Lifetime Value of Group and Event Business
As any hotelier knows, not all guests, groups or events are created equal. By this, we mean that each guest or group of guests represents a certain level of potential value to the hotel (whether that be through spend, social influence or long-term loyalty, for example). Some guests, of the transient nature, will simply check-in and check-out with limited demands, fuss and high-touch engagement with your property. Others, however, might spend hundreds or thousands on upgrades, dining, entertainment, treatments, and so on. These are the segment who, from a revenue perspective, represent more value to your hotel. Group and events business especially, unlike transient, represents often untapped revenue potential, as corporations and groups are continuously investing more into their meetings budgets and trips. While transient business consists of short-term stays, group business often demands more occupancy (with the potential of trip extension for bleisure travelers), venue space, custom packages for food and beverage, entertainment options and so much more.
