There is absolutely no point in wasting time and resources on irrelevant offers or promotions that not only prove futile for hotel companies, but could also run the risk of annoying customers but how do you avoid this?

Knowing your customers, especially loyal guests, is imperative for hotel companies so retention tactics need to be precise and razor-focused on cost optimisation. That isn’t easy especially considering the increasing volume, variety and velocity of data, not to mention the quickening speed of business. Be it for real-time decision-making or personalised content or offers, hotel companies require automated information management, analytics and visualisation in addition to experience and good judgement.

From a loyalty programme perspective, firms are keeping a tab on the activities of their members and ‘big data’ its part in improving conversion rates. Of course, it helps to know what kind of trip your customer is planning, what offers they would like to receive and so on in order and to match their overall needs. 

EyeforTravel’s Ritesh Gupta talks to Beatrice Bachelin, director loyalty marketing, Best Western Hotels Deutschland about how the are applying ‘big data’ to keep customers and keep them happy.

EFT: Can you provide an insight into your role and how you have embraced new data technologies?

BB: I manage our loyalty programme Best Western Rewards for Germany and Luxemburg. Data is a core element of managing a loyalty scheme. We implemented CRM tools some years ago and promote targeted offers according to a guest’s status or point levels, as well as based on the activity of the member.

EFT:  How do you assess the maturity level of segmentation analytics today?

BB: We have been working with a number of tools to analyse the data for some years already, so there is a clear awareness for the value of data and data analytics. But there are limitations concerning the amount of data as well as connecting different databases with each other.

EFT: What are the major challenges in unlocking the full value of big data in order to become customer-centric?

BB: We have three main challenges:

1.       Due to our organisational set up within Best Western worldwide, we have a number of isolated applications that are currently not interfaced. In order to get a 360° customer view, we need to connect all systems and build a central analytics database.

2.       Secondly, we need to develop two-way interfaces with all our hotels, to get the all stay data of our members.

3.        Thirdly we are confronted with high data security regulations in Germany and lower regulations in other countries, but we still need to sure to meet these regulations at any point.

EFT: So how should a travel entity go about optimising for ‘big data’ to ensure the customer comes first?

BB: Today the customer is very sophisticated and expects us to provide them with what they are asking for. In the past they often consumed what marketers presented them. They expect the right and correct information starting from their search throughout their stay. So the goal is to provide this information, independent of the channel the customer is using for their reservations.

EFT: Can you cite an example of where analytics has shown how it can contribute to strengthening the overall segmentation initiative?

BB: We are using the analytics to provide special offers based on status or point level. These are much more effective than award offers without segmentation. We also successfully communicate offers to reactivate members based on their past behavior. For example, we promoted a 1,000 bonus point offer to reactivate a member that had not stayed with us for 12 months, as well as hotels they had stayed before, and had a conversion rate of 30%.

EFT: How can travel companies embrace real-time analytics to work on customised offerings?

BB: The basis for ‘big data’ are interfaces between all systems involved in the customer journey, as well as thorough analysis, so we learn more about the customer’s needs and expectation.

When we better understand what kind of trip (eg. leisure, business, wellness, city, golf) they are planning and what kind of offers (eg. specials, all-inclusive, bonus points) they are looking for in which destination, we will be able to provide offers that suit their needs.

EFT: What sort of benchmark can travel companies consider for their segmentation efforts?

BB: I always like to take Amazon as a benchmark, as a customer they provide me with the offers I am interested in, based on my activities with them.

Beatrice Bachelin, director loyalty marketing, Best Western Hotels Deutschland is scheduled to speak at the Smart Travel Analytics Europe 2013 conference to be held in Berlin this year (13-14 November).