Data is the new oil – we used that quote many times before. But why are hotels not getting it right? They need to realize the true value of ‘Big Data’, not only in terms of profit margins but in other ways too, such as improving operational efficiency, staff productivity, and guest satisfaction? These are questions Dr. Michael Toedt answers in this White Paper.
OTAs such as Airbnb, Booking.com, Expedia, TripAdvisor and so on have two things in common. One: they own nothing tangible. Two: they are extremely valuable because of the quantity and quality of ‘Big Data’ they hold. And both of these give OTAs the ability to turn that data into action!
Compare the value of the largest hotel chains with the value of the booking holding (which includes booking.com). You will realize that the value of the hotel chains falls apart! And because investors love ‘Big Data’, they’re favoring the data providers (OTAs) over the end service providers (hotels), impacting the latter’s revenue and company value.
But where exactly are hotels going wrong here? And how can they put it right so they can realize the true value of ‘Big Data’, not only in terms of profit margins but in other ways too, such as improving operational efficiency, staff productivity and guest satisfaction? These are questions I will answer later on in this White Paper. First, however, I will examine what ‘Big Data’ means to hotels, how it can be used and why it is so important.
