School of Hospitality, Sport, and Tourism Management Big Data in Hospitality HSTM 4423—Current Issues in Hospitality Dr. Heather Allman Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management What is Big Data and why should we use it? WHAT: • Extremely large data sets that may be analyzed to reveal patterns, trends, and associations, especially related to human behaviors WHY: • Carefully identify issues within our businesses • Focus on customers • Gauge preferences • Market target segments Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management How can Big Data help? • Consumers are wanting a more personalized experience • Big data can be analyzed to create more WOW! Moments for the guests • Can help identify customers with higher lifetime value Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Opportunity to WOW! • Hospitality industry is slowly catching onto the Big Data trend following the lead of retail and manufacturing industries • Yield management skills will improve with big data available • YM is the process of attracting the OPTIMAL customer to garner the most profit for every room/table/event/etc. • What opportunities could we have if we knew our guests, their preferences, preferred experiences, their friends, personalities…. ??? Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Current and Future Needs • Increase what you know about your guests by: • Monitoring web platforms by bookings/spending trends, reviews, etc. • Observing your guests • Coding • Giving meaning to behaviors during stays • Analyzing behavior on websites and online reviews Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management ADVANTAGES: RISKS: • Improve visibility • Improve communication strategies • Identifies most profitable clients • Identifies clients most likely to recommend your business • Could be considered intrusive • Know the limits of usage • Don’t overuse • Only useful if the data are analyzed, used, & transformed into effective & thoughtful strategies Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Big Data makes things better… • Better FORECASTING = more revenue! • Understand booking patterns and cancellation rates • Better YIELD MANAGEMENT • Better EXPENSE MANAGEMENT • Less overtime for employees, staffing is more controlled • Better CUSTOMER SATISFACTION • Increases intention to return and produces customers that are more loyal • Better EFFECTIVE MARKETING strategies Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Creating a Personalized Experience • Big data allows for a more personalized experience • Examples of how we can make a hotel stay personalized: • • • • • Welcome cocktails Suggestions for food/wine in the dining room Preferred temperature Brands of shampoo/conditioner Number of pillows • Guests want UNIQUE! • How does a business differentiate themselves from competition? Heather R. Allman, Ph.D. Minimum wages and turnover rates within the hospitality industry Skilled labor shortage in the hospitality industry Seasonality in the hospitality industry Security issues within the hospitality industry #MeToo movement related to the hospitality industry 酒店行业的最低工资和人员流动率 酒店业技术工人短缺 酒店行业的季节性 酒店行业的安全问题 与酒店业相关的 MeToo 运动 01/29 Minimum wages and turnover rates within the hospitality industry 03/20 Seasonality in the hospitality industry 04/01 Security issues within the hospitality industry School of Hospitality, Sport, and Tourism Management Share Economy in Hospitality HSTM 4423—Current Issues in Hospitality Dr. Heather Allman Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Definition of Share Economy共享经济: 1. Socio-economic ecosystem built around the sharing of human and physical resources, including: 围绕共享人力和物质资源建立的社会经济生态系统，包括: • • • • • Creation 创建 Production 生产 Distribution 分布 Trade 贸易 Consumption 消费 2. Consumers or firms granting each other temporary access to their under-utilized physical assets, possibly for money. 消费者或公司允许对方暂时使用他们未充分利用的实物资产，可能是为了钱。 • https://www.youtube.com/watch?v=RZSLXPuMvTo Gaggioli, 2015. Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Share Economy Businesses: • Air BnB • Uber • Lyft • CouchSurfing.com • Wimdu • Vayable • Any others??? Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Quick Facts: • Air BnB is reportedly worth $13B (Forbes.com) • Approximately 550k listings in 192 countries (Strong, 2014) • Uber is reportedly worth $18.2B (Forbes.com) • Speed and scale of growth directly relates to accessibility of high-speed internet (Escobar, 2016) • 19% of US travelers have used some form of shared accommodations in 2014 • 44% of consumers would considering using a shared accommodation • 66% of millennials and 62% of GenXers will use shared accommodations more than once (Gaggioli, 2015) Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Lessons to be learned… • How to use distribution channels to increase bookings and occupancy • Search for alternative channels • Hoteliers have a competitive edge: TRUST! • 67.6% of people don’t trust rending a room in someone’s house • Increase mobile technology usability and responsiveness for customers • Embrace change and understand the fast-paced marketplace • Be a local expert for your customers • Be authentic and provide local, memorable experiences Heather R. Allman, Ph.D. Escobar, 2016. School of Hospitality, Sport, and Tourism Management What is Causing the Success of Shared Economy? • Cost • GPS • Cultural experiences and locations文化体验和地点 • Customers feel more in-tune with local culture客户更符合当地文化 Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Impacts of Shared Economy on Hospitality共享经 济对酒店业的影响 • For every 10% increase in supply on AirBnB, it causes a decrease of 0.37% in monthly hotel revenue • Lodging catered towards business travel is going to be more negatively impacted by shared economy options than economy hotels • Hotels have had to lower prices to be competitive Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management What Changes Can Be Made? • Offer workspaces, rooms, and rental cars by the hour • Be more flexible and transparent for the consumer • Leverage personalization and localization • Increase technology availability and accuracy to help with ease of use for customers (EHL Editorial Team, 2016) • Track and analyze activity of peer-to-peer networks • Align yourself with complementary partnerships • Unbundle services (Terry, 2016) Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management • Ted Talk video: https://www.youtube.com/watch?v=-uv3JwpHjrw Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management References: • EHL Editorial Team. (2016, June 2). The sharing economy: Challenges and opportunities for hoteliers. Retrieved January 21, 2018, from https://blog.ehl.edu/the-sharingeconomy-challenges-and-opportunites-for-hoteliers • Escobar, E. (2016, June 27). The sharing economy: Concepts and lessons for hospitality. Retrieved from https://www.hospitalitynet.org/opinion/4076818.html • Gaggioli, A. (2015, August 15). How the sharing economy influences hospitality. Retrieved from https://www.cloudbeds.com/articles/how-the-sharing-economyinfluences-hospitality/ • Strong, C. (2014, November 11). Airbnb and hotels: What to do about the sharing economy? Retrieved from https://www.wired.com/insights/2014/11/hotels-sharingeconomy/ • Terry, L. (2016, October 13). 8 Secrets to success from the sharing economy. Retrieved from https://hospitalitytech.com/8-secrets-success-sharing-economy Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Big Data in Hospitality HSTM 4423—Current Issues in Hospitality Dr. Heather Allman Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management What is Big Data and why should we use it? WHAT: • Extremely large data sets that may be analyzed to reveal patterns, trends, and associations, especially related to human behaviors WHY: • Carefully identify issues within our businesses • Focus on customers • Gauge preferences • Market target segments Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management How can Big Data help? • Consumers are wanting a more personalized experience • Big data can be analyzed to create more WOW! Moments for the guests • Can help identify customers with higher lifetime value Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Opportunity to WOW! • Hospitality industry is slowly catching onto the Big Data trend following the lead of retail and manufacturing industries • Yield management skills will improve with big data available • YM is the process of attracting the OPTIMAL customer to garner the most profit for every room/table/event/etc. • What opportunities could we have if we knew our guests, their preferences, preferred experiences, their friends, personalities…. ??? Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Current and Future Needs • Increase what you know about your guests by: • Monitoring web platforms by bookings/spending trends, reviews, etc. • Observing your guests • Coding • Giving meaning to behaviors during stays • Analyzing behavior on websites and online reviews Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management ADVANTAGES: RISKS: • Improve visibility • Improve communication strategies • Identifies most profitable clients • Identifies clients most likely to recommend your business • Could be considered intrusive • Know the limits of usage • Don’t overuse • Only useful if the data are analyzed, used, & transformed into effective & thoughtful strategies Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Big Data makes things better… • Better FORECASTING = more revenue! • Understand booking patterns and cancellation rates • Better YIELD MANAGEMENT • Better EXPENSE MANAGEMENT • Less overtime for employees, staffing is more controlled • Better CUSTOMER SATISFACTION • Increases intention to return and produces customers that are more loyal • Better EFFECTIVE MARKETING strategies Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Creating a Personalized Experience • Big data allows for a more personalized experience • Examples of how we can make a hotel stay personalized: • • • • • Welcome cocktails Suggestions for food/wine in the dining room Preferred temperature Brands of shampoo/conditioner Number of pillows • Guests want UNIQUE! • How does a business differentiate themselves from competition? Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Share Economy in Hospitality HSTM 4423—Current Issues in Hospitality Dr. Heather Allman Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Definition of Share Economy共享经济: 1. Socio-economic ecosystem built around the sharing of human and physical resources, including: 围绕共享人力和物质资源建立的社会经济生态系统，包括: • • • • • Creation 创建 Production 生产 Distribution 分布 Trade 贸易 Consumption 消费 2. Consumers or firms granting each other temporary access to their under-utilized physical assets, possibly for money. 消费者或公司允许对方暂时使用他们未充分利用的实物资产，可能是为了钱。 • https://www.youtube.com/watch?v=RZSLXPuMvTo Gaggioli, 2015. Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Share Economy Businesses: • Air BnB • Uber • Lyft • CouchSurfing.com • Wimdu • Vayable • Any others??? Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Quick Facts: • Air BnB is reportedly worth $13B (Forbes.com) • Approximately 550k listings in 192 countries (Strong, 2014) • Uber is reportedly worth $18.2B (Forbes.com) • Speed and scale of growth directly relates to accessibility of high-speed internet (Escobar, 2016) • 19% of US travelers have used some form of shared accommodations in 2014 • 44% of consumers would considering using a shared accommodation • 66% of millennials and 62% of GenXers will use shared accommodations more than once (Gaggioli, 2015) Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Lessons to be learned… • How to use distribution channels to increase bookings and occupancy • Search for alternative channels • Hoteliers have a competitive edge: TRUST! • 67.6% of people don’t trust rending a room in someone’s house • Increase mobile technology usability and responsiveness for customers • Embrace change and understand the fast-paced marketplace • Be a local expert for your customers • Be authentic and provide local, memorable experiences Heather R. Allman, Ph.D. Escobar, 2016. School of Hospitality, Sport, and Tourism Management What is Causing the Success of Shared Economy? • Cost • GPS • Cultural experiences and locations文化体验和地点 • Customers feel more in-tune with local culture客户更符合当地文化 Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management Impacts of Shared Economy on Hospitality共享经 济对酒店业的影响 • For every 10% increase in supply on AirBnB, it causes a decrease of 0.37% in monthly hotel revenue • Lodging catered towards business travel is going to be more negatively impacted by shared economy options than economy hotels • Hotels have had to lower prices to be competitive Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management What Changes Can Be Made? • Offer workspaces, rooms, and rental cars by the hour • Be more flexible and transparent for the consumer • Leverage personalization and localization • Increase technology availability and accuracy to help with ease of use for customers (EHL Editorial Team, 2016) • Track and analyze activity of peer-to-peer networks • Align yourself with complementary partnerships • Unbundle services (Terry, 2016) Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management • Ted Talk video: https://www.youtube.com/watch?v=-uv3JwpHjrw Heather R. Allman, Ph.D. School of Hospitality, Sport, and Tourism Management References: • EHL Editorial Team. (2016, June 2). The sharing economy: Challenges and opportunities for hoteliers. Retrieved January 21, 2018, from https://blog.ehl.edu/the-sharingeconomy-challenges-and-opportunites-for-hoteliers • Escobar, E. (2016, June 27). The sharing economy: Concepts and lessons for hospitality. Retrieved from https://www.hospitalitynet.org/opinion/4076818.html • Gaggioli, A. (2015, August 15). How the sharing economy influences hospitality. Retrieved from https://www.cloudbeds.com/articles/how-the-sharing-economyinfluences-hospitality/ • Strong, C. (2014, November 11). Airbnb and hotels: What to do about the sharing economy? Retrieved from https://www.wired.com/insights/2014/11/hotels-sharingeconomy/ • Terry, L. (2016, October 13). 8 Secrets to success from the sharing economy. Retrieved from https://hospitalitytech.com/8-secrets-success-sharing-economy Heather R. Allman, Ph.D.
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