Consider the scenario of a leading hotel in London that needs to increase its room rates in order to operate fully within its required margins. A thorough analysis of the data revealed specific guests to focus on: those who are spendthrift and prefer to stay longer. By leveraging data from its property management system and user-generated content, the hotel identified what guests with high spending power enjoy most: spacious rooms, historical significance, and central location. . This insight drove a strategic communications overhaul, implementing customized services and AI personalization, improving guest retention and satisfaction, and increasing direct bookings and upsells.
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As the London hotel case study shows, data contains hidden stories and insights. However, uncovering these requires deep analysis and understanding of context. The popularity of SaaS data visualization tools has created a false belief in quick-fix solutions and overlooked the critical step of clearly defining the research question. When applying technology too quickly, off-the-shelf solutions often fail to address the nuances of a particular problem and can lead to ineffective or misleading results.
Beyond technology: the art of interpretation
The real value of data lies in how you interpret it, combining business insights and strategic research. This process involves analyzing a wide range of data collected from multiple sources (custom metrics, product details, customer feedback, pricing strategies, behavioral insights, and logistics data) to ensure accuracy and security. The main challenge is enriching and analyzing this data to generate actionable insights.
Let's take a look at some use cases where data is interpreted in an inspiring way to help businesses drive innovation and new experiences.
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client ring tool
Clientling aims to establish meaningful relationships between retailers and customers in the luxury goods industry. This is accomplished by providing real-time data applications to salespeople based on customer profiles. These digital tools allow hotel staff to provide personalized welcomes and recommendations for returning guests, seamlessly blending digital and in-person interactions. Similar to luxury retailers, which emphasize the value of personal connections, where 61% of customers value such relationships. It fosters memorable experiences. Leaders like Kering have shown how personalized interactions build loyalty. Once expensive and only available to large hotel chains, this technology is now more accessible, offering even smaller hotel groups the opportunity to improve the guest experience at an affordable price.
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Customizable guest experience and personalized upsells
Thanks to AI, various platforms like Duve have the ability to help hotels create personalized guest experiences by providing customized recommendations about local attractions, restaurants, and must-see places. We are developing. This is complemented by a robust ability to upsell products specifically designed to meet each guest's needs and desires.
Seamless travel experience: Transforming your hotel stay
New technology streamlines the travel and hotel experience, ensuring a smooth transition from the airport to your hotel. Imagine an Uber syncing with your flight arrival and waiting for you despite the delay. This seamless coordination reduces the hassle of travel and improves the experience upon arrival. Additionally, online check-in allows guests to submit all documents prior to arrival and avoid queuing. So when you arrive at the hotel, you'll be directly greeted by a receptionist who will provide you with your exact arrival time and check-in information, demonstrating the hotel's commitment to leveraging technology to provide superior guest service. These innovations signal a shift towards an intuitive, guest-focused journey where every detail from landing to check-in is meticulously planned for your comfort and convenience.
Image credit: Yotel
Data-driven customer engagement beyond the stay
Data is becoming increasingly important to driving brand loyalty by shaping the experience before, during and after a hotel stay. Looking at brands outside of the hospitality industry, like Nike, we see how data and AI can foster communities and maintain engagement beyond the initial purchase and stay. For example, sports retail brand Decathlon leverages customer data to offer customized sports classes, strengthen customer relationships, and enrich experiences based on personal preferences beyond the store. This approach not only deepens the connection between customers and brands, but also sets a precedent for personalized engagement across the industry.
Supply chain efficiency and sustainability
As sustainability becomes more important and carbon assessments are mandated by EU regulations due in 2025, the hospitality industry will face demands for transparency into suppliers' CO2 emissions. Startups like Verteego are innovating with AI tools to automate retail supply chain processes, reduce waste, optimize inventory, and increase environmental efficiency. These AI solutions could soon be key for hotels and retailers to efficiently select green suppliers and meet both regulatory and consumer green demands. Incorporating AI into supply management will not only meet these demands, but also attract green business customers and position hotels as a responsible and forward-thinking choice.
Increase employee engagement with data
In an industry known for high employee turnover, data can significantly improve employee satisfaction and happiness. Clienteling tools are a prime example. By providing hotel employees with accessible guest data, these tools eliminate the need for time-consuming data entry and allow staff to do what they do best: truly connect with guests through personalized interactions. You'll be able to focus on forming connections. Additionally, startups like Rosalie are making a difference by addressing a major concern in the hospitality industry: financial stress. With Rosaly, employees can access their earned paychecks on demand, eliminating the need to wait until the end of the month and reducing potential overdraft fees. This flexibility can greatly improve employee satisfaction and help reduce turnover. By implementing innovative services like this, the hospitality industry can foster a more collaborative work environment and help improve employee retention.
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Data and neuroscience in design
a) Olfactory Industry: Elevating Emotions
Yves Saint Laurent Beauté is a pioneer in the fusion of data and neuroscience in the field of smell, with a focus on deepening emotional connections through scent. The company's “Scent Station” offers his 25-minute in-store experience where customers wear a headset connected to an electroencephalogram (EEG) to monitor their emotional responses. AI algorithms then analyze this data to personalize fragrance selections, demonstrating the transformative role of data in creating more meaningful beauty and scent experiences.
b) Neuroarchitecture: building a well-being space
Neuroarchitecture combines architecture, neuroscience, and psychology to explore how design influences cognition, behavior, and emotion. Architects are now using AI-enhanced data to tailor building designs to individual preferences, taking into account factors such as air quality and light exposure. This approach goes beyond aesthetics to create spaces that actively promote physical and mental health. Neuroarchitecture represents a major advance in harmonizing traditional architectural principles with the precision of AI and data science.
Balancing technology and humanity in hospitality
In the face of the introduction of AI and advanced technology, the competitive edge of the hospitality industry lies in blending innovation with the human touch. By involving employees and carefully integrating AI, hotels can deliver uniquely personalized experiences that align with customer expectations. Technology should enhance rather than overshadow the customer journey by adding emotionally resonant touches or seamlessly integrated into aspects of the service. In this era of rapidly advancing technology, prioritizing human interaction is critical. The goal is to use data and automation as tools to enrich interactions, striking a delicate balance between the efficiency of technology and the irreplaceable warmth of humans.
A surge in AI integration is expected within the next two years, ushering in a period of transformation for the industry.
Main image credit: Conrad Hotels & Resorts
