Big Data and Little Devices – Hospitality Firms Seek a Competitive Edge

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As the Bring Your Own Device (BYOD) phenomenon continues to proliferate, the hospitality industry has an opportunity leverage mobile devices and big data to deliver value-added information and services tailored to the needs and preferences of individual guests. While the major players in the hospitality industry are tracking BYOD, the “killer” application that would provide a significant competitive advantage has not yet surfaced.

Whether traveling for vacation or business, the BYOD guest wants to maximize the traveling experience and make life simpler. This means services that reduce time-consuming tasks, deliver information on surroundings, instill a sense of security and present easily investigated options. In today’s 7/24/365 always-switched-on world, these services can be a significant benefit for both business and vacationing guests who increasingly struggle to balance work and pleasure.

With vast amounts of readily available personal data, many BYOD guest requirements can be satisfied utilizing their personal technology. Data that is either voluntarily offered to the hospitality company, captured in loyalty programs, or available through credit card providers can be mined for some of these extended services. Also, guest-provided access to personal and/or business calendars can be utilized to provide additional on site or at location services during a trip.

These services are a potential non-offensive revenue stream and can be paid for indirectly through small charges against loyalty program points. Such services would increase guest loyalty, resulting in increased utilization of brand properties. If guests perceive the value and quality of service as exceeding the cost, small incremental charges are tolerated.

Moreover, low-cost data mining tools and big data analysis capabilities can provide tailored, real time information directly to the device.  If the hospitality system has access to a guest’s calendar, alerts/instant messaging, badges, banners, and/or notifications can be sent to call a cab/car service before needed;   provide alerts on traffic conditions, flight delays and updates on changing weather conditions in destination cities; verify lunch or dinner reservations; or alert the front desk / bellman when guests approach the property (GPS enabled luggage ready to “take off”).

Calendar, credit card and voluntarily submitted personal data can also be analyzed so that guests receive notifications of entertainment events in the visiting city that might be of interest, as well as restaurant recommendations based on traveler tastes and geographic proximity.

Additional services could include an online lost-and-found to alert the hotel, and sequencing of cameras for late night arrival that can activate cameras to provide extra security as guests walk to their rooms.

While the underlying technologies have been present for a few years, applications are only now starting to be built.  Near Field Communications (NFC) – purposely designed to have a limited range – is already built into many smart phones and is starting to gain traction with some limited applications reaching the marketplace.

With NFC, a guest can pass a smartphone over a NFC reader to activate a screen and check into a hotel without waiting at a lobby desk – the application delivers an electronic room key to the smartphone via the internet.

Upon arrival at a room, a guest could simply place their phone in front of the NFC reader to open the door. It would automatically adjust the room temperature to the preference stored in the guest’s profile, and turn on the television to the preferred network in the preferred language. The technology could similarly be used to allow elevator access to restricted floors and exercise rooms, and as a payment vehicle for services at hotel restaurants, bars and shops.  While still a relatively nascent technology, early adopters are implementing such systems in trials.

Optical Reader Applications are another promising area. All smartphones have a built-in camera leveraged with software applications to interpret Quick Response (QR) codes. QR codes can be leveraged to enhance the guest experience by directing smartphones to various types of information such as promotional pages, local tourist maps, restaurants and attractions.

The BYOD phenomenon is an ideal opportunity for hospitality brands looking for new ground-breaking approaches to increase market share. BYOD provides a perfect platform to leverage new scalable and sustainable guest offerings that can improve guest loyalty, enhance repeat business and increase wallet share of each guest.

New and beneficial applications can significantly increase brand preference among today’s tech savvy traveler. Access to increased levels of personal data will dramatically increase the ability to tailor applications to the specific requirements and preferences of each individual, thereby providing a greater level of convenience and value.

As guests continue to raise their expectations, BYOD applications can be easily and rapidly deployed throughout a brand’s properties with minimal effort and manageable costs. Current infrastructure such as Wi-Fi networks can be further leveraged to bring new value to the quest experience, allow for new features to differentiate a brand and create new sources of revenue.

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