How To Market A Hotel With Big Data

Transcription

1 Big Data Marketing like the OTA s Dr. Michael Toedt CEO, TS&C GmbH dailypoint.com #dailypoint 1

2 Company Profile: TS&C Founded in 2005 in Munich Partner of leading hotel societies 30 employees 800 hotel clients dailypoint Big Data Marketing and CRM Software Consulting Lecturer Researcher Author PIONEERs IN BIG DATA 2

3 Why we are here? 2015: Only 24% of all bookings are direct bookings Huge negative effects on profitability!!! 3

4 The question to answer: WHY ARE OTA S SO SUCCESSFUL? 4

5 Why are OTA S so successful? Amazon started 1995 John Bezos vision: Talking to the right people, at the right time and offering the right products. Today: 53% of all online shopping starts at Amazon Google 36%, ebay 7% 5

6 Why are OTA S so successful? Amazon was never a book store it was a Big Data company from the beginning on! OTA s are no Hotel booking platforms, they are data driven companies! Hotel companies regard themselves as hoteliers. The hotel is just the product! Hotels must be guest centric, data centric to become successful again! 6

7 The success formula Big Data companies do not ask, they listen. They listen to the data! What does a customer buy? buying patterns, interests, booking frequencies, purchasing power What does a customer say? Social web: Facebook, evaluation platforms What is a customer doing? open s, click on links, visit website, which pages 7

8 The concept of Big Data Collecting Cleaning Analyzing Acting In a living & learning environment 8

9 Big Data OTA s know exactly who their customers are! OTA s do not explicitly ask OTA s implicit what the customer wants Hotel companies who ask their guests what they want showing their data impotence! 9

10 Big Data marketing simplified MARKETING AUTOM. RE- TARGETING Res. System $ VALUE INTERESTS QM ANALYTICS WEB COMPLAINT- M. 10

11 OTHERS CORE PROCESS-M. The Hotel Business POS PMS FOS CIS SALES CRS CMS IBE Log Files Forms Loyalty Lettershop Concierge Complaint Smart TV Wifi E-directory Up-selling Html Conf. QM App Table Res. Shop Loyalty Extranet Vouchers ENL CHANNELS facebook twitter tripadvisor Google+ sms WhatsApp post mail WEBSITE Hotels run about 15 different Systems with relevant Michael Toedt, TS&C guest data! 11

12 Hotel status quo MARKETING AUTOM. RE- TARGETING PMS, POS NO CONNECTIONS QM ANALYTICS WEB COMPLAINT- M. 12

13 THE RESULT Powerfull data locked in different systems but not usable at all 13

14 A new IT environment is needed! BIG DATA IT 14

15 Why a new IT-structure? The 5 characteristics of Big Data: a huge amount of data Volume handle many different sources Variety processing much data in real-time Velocity cleaning data Veracity linking and tagging data throughout the universe Value 15

16 Big Data IT-structure OPERATIONAL LEVEL (EXISTING) PMS POS WEB EMS MIDDLEWARE THE HEART BIG DATA MODULES Business Intelligence Master Data Management (DQM) Big Data Warehouse Campaign Management Quality Management COMMUNICATION CHANNELS Website Social Media App Offline BIG DATA IT STRUCTURE 16

17 Big Data examples Smart Couponing: Turn lookers into bookers Newsletter subscribers who haven t booked within 4 weeks receive a 5 % voucher, valid 4 weeks on the hotel website Result (within 14 months): 358 direct bookings; 990 nights Distribution costs: 3.07% 17

18 Big Data examples Smart Couponing: Booking Reminder People who haven t booked a stay within the last 12 months receive a $ 40 voucher, valid 4 weeks on the hotel website Result (within 14 months): 47,210 direct bookings; 139,079 nights Distribution costs: 5.31% 18

19 Retargeting 19

20 Pre-Stay: Revenue driver The more a customer knows about a hotel, the more he spends! Results for a resort hotel (avg. Length of stay: 3,8 days) + 21 % F&B Revenue + 28 % Other Revenue + 17 % Total Revenue 20

21 Big Data: Evolution of Marketing WHY IS COMMUNICATION FOR HOTELS SO IMPORTANT? 21

22 Hotel loyalty model Media Channel Satisfaction Loyalty Frequency The influence of communication Time on loyalty: 11 % 22

23 Why is communication so important? Location based product: guests have to pass by to remember your hotel! Small marketing budgets no brand campaigns reminds the guest about his experiences Communication-Overload If you don t communicate, the customer forgets you! 23

24 Remember! If a guest stays 3 nights at your property, he is 362 days on his own. Without communication, no remembering effects are generated No remembering effects mean less bookings! 24

25 Communication frequency OTA s have learned their lessons! They send 2 to 5 newsletters per week, some even daily! Be cautious: Quality Matters 25

26 Content marketing Micro-Segmentation We are all different! No target groups any more. Each guest is its own target! 26

27 The world of OTA communication Communication overload Need to create remembering effects Raise communication frequency Deliver relevant information Requires a big data guest profile Content marketing capabilities Marketing automation Loyalty increase booking frequency 27

28 SUMMARY 28

29 BIG DATA FIRST OF ALL: CONCENTRATE ON STRUCTURED DATA 29

30 Big Data marketing simplified MARKETING AUTOM. RE- TARGETING PMS, POS $ VALUE INTERESTS QM ANALYTICS WEB COMPLAINT- M. 30

31 Don t become the next Kodak! It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change! Charles Darwin 31

32 Knowing is not enough; we must apply. Willing is not enough; we must do. Johann Wolfgang von Goethe 32

33 Now is the time! QUESTIONS 33

34 34 TS&C #dailypoint LinkedIn, Xing, Facebook, Twitter