Data-rich hotels wow guests

Hoteliers are extensively leveraging data analytics and artificial intelligence to drive business

In the hospitality industry, particularly among top-notch hotels, a 360-degree digital walk-through, an active website and interactive apps have become hygiene. To stay ahead in the race, smart players in this data-rich sector are taking the lead in deploying data analytics and artificial intelligence (AI) to enhance customer experience, build loyalty and achieve repeat revenue through innovative pricing.

A large number of players are focusing on the wow factor for guests by understanding their preferences and delighting them with customised experiences.

For example, Sarovar Hotels has taken to iBeacons to help understand their customers better. iBeacon allows Bluetooth devices to broadcast or receive small and static pieces of data within short distances. “The technology helps us in identifying guests as and when they enter a property and help discover their personal likes and dislikes from prior stays, and offer them customised services,” says Harish Chandra, general manager, information technology, Sarovar Hotels.

M Balaji, chief executive officer, Clarks Exotica Resorts & Spa, says that at one of its resorts the company has installed cameras with face recognition feature. The images captured by these cameras serve as data points for the staff equipped with connected devices. The smart devices also store history of guests visiting the resort. Using data analytics, the employees are able to leverage both the customers’ history and present-day stay at the property to create new and meaningful guest experiences.

Meanwhile, at Treebo Hotels data analytics is being leveraged to bring in a paradigm shift in the levels of customer service. The hotel has adopted a Quality Management System (QMS) that helps it convert each piece of information, be it a non-working air-conditioner in a room or low pressure of water in a faucet, into a data point.

“Our quality managers immediately swing into action once the QMS system sounds an alert. The idea is to bring in quality controls at each of the touch points to improve guest experience and become predictive rather than reactive in dealing with customer-related issues,” explains Sidharth Gupta, co-founder, Treebo Hotels.

Analytics is also being used to segment guests, according to booking trends and behaviour, in order to gauge their likelihood to respond to promotions. Rohit Vig, managing director, StayWell Hospitality Group, says, “In order to increase the loyalty and wallet share of a hotel’s most valuable guests, it is important to understand guest preferences (locations, activities, and room types), purchase behaviour (frequency, length of stay, and time of year) and profit potential.” For example, based on available data and guest history, if a hotel targets customers who would likely take advantage of spa services, bar and restaurants, rather than guests who only generate room nights, they could significantly increase revenues and profitability.

According to Suneel Sharma, professor, information technology, SP Jain School of Global Management, the operational areas where AI and analytics can make a big impact are room pricing optimisation, improved yield management, and customer service customisation. He suggests that artificially intelligent chatbot agents can handle peak traffic through automating customer engagement. Futuristic developments will put virtual assistants in the rooms making service availability fully omnipresent.

Sanjay Nagalia, chief operating officer, IDeaS Revenue Solutions, which offers brands AI-led solutions, points out that advanced analytics is aiding hotels to move beyond routine revenue management processes into pricing capabilities that help them intelligently optimise their revenue results. Based on data related to room types, occupancy rates and day parts, hoteliers can adopt a dynamic pricing strategy and manage inventory more effectively.

“We have taken to trend-led pricing based on season, events. With heatmaps, A/B testing, etc., we try to understand traveller actions on our website, which help us test new elements, simplify the website, online booking engine experience and improve our conversions without increasing the budgets on paid promotions,” says George M George, managing director, Xandari Resorts (part of Muthoot Group - Leisure & Hospitality Division).

InterContinental Hotels Group (IHG) is betting big on cloud technology. IHG claims that it is working towards rolling out industry’s first cloud-based guest reservation System (GRS) in 2017. Shantha de Silva, head of South West Asia, IHG, says that GRS will enable guests to build the kind of stay they want, and help IHG to offer stay options and amenities according to past booking preferences of the guest. For example, using GRS, customers can look up ocean view rooms in a particular location with a price cap and check for availability of services such as theatre package.

Anil Goel, chief technology officer, OYO, points out that even as the hospitality segment experiments with the new-age technologies, one of the biggest challenges is to find the right talent with deep expertise in areas like AI. Also since these initiatives tend to have a much longer return cycle than other technology investments, keeping the team focused and motivated can also be challenging at times.

Keeping track

• Many hoteliers are focusing on the wow factor for guests by understanding their preferences and delighting them with customised experiences
• Analytics is also being used to segment guests, according to booking trends and behaviour, in order to gauge their likelihood to respond to promotions
• The operational areas where AI and analytics can make a big impact are room pricing optimisation, improved yield management, and customer service customisation
• As hospitality experiments with technologies, one of the biggest challenges is to find the right talent with deep expertise in areas like AI