Data Silos: The Unraveling of the Hotel Guest Journey

Data silos are spoken about often in the hotel industry. Different systems for different functions – all doing their respective jobs. But what’s the harm? In a world where efficiency is paramount for commercial success and guests expect seamless, hyper-personalized experiences – an effective Find, Book and Grow strategy simply cannot co-exist with data silos.

We bend over backwards to make the guest journey exceptional. We splash out on jaw-dropping photography across marketing channels, making sure future guests Find us and click to discover more. We painstakingly craft tempting offers so they Book. And we go all-in with our on-property service – embracing the hyper-personalization trend – nurturing loyalty to Grow revenue and the business as a whole.

But in terms of the technology that powers this all-important customer journey, hotels are still falling short.

Fragmented data directly reduces a hotel’s ability to maximize the impact of the customer journey. Despite this, 25% of hotel executives say their data is fragmented in different systems, and 31% say IT infrastructure challenges are a problem – limiting their ability to use data more effectively.

Savvy consumers know the power of their data. In fact, 61% are willing to spend more with businesses if they are offered a customized experience. But only 23% of consumers report experiencing high levels of personalization after recent hotel stays.

The source of sickly silos

Hotels find themselves in silos due to traditional departmental-level incentive structures. F&B teams are incentivized by true cost, sales departments by volume, marketing teams assessed on return on ad spend (ROAS), and so on. This negates a focus on common targets across the hotel. Therefore, each department has its own systems which don’t interact, preventing different teams from seeing how their activity impacts other parts of the business.

Guest experience is affected by these data silos – and so is operational efficiency. Hotel staff take longer to access data from different systems, invoicing and billing is more difficult, and the understanding of guest personas is diluted – impacting the implementation and effectiveness of marketing campaigns. There are also risks that one department makes decisions that negatively impact another department – and thus the hotel overall. This is commonly seen when marketing runs a promotion when revenue management has already put measures in place to improve demand through forecasting and optimizing pricing.

Centralized data: breaking down the silos

It’s understandable that hotels want to squeeze the most value from existing systems, and integrating systems takes time, effort and money – something hoteliers are constantly juggling in a fast-paced landscape.

But unifying guest data really is the only way to deliver a seamless experience – for both guests and employees. Smarter data management that brings together a customer relationship management (CRM) system with a customer data platform (CDP) and analytics is a game-changer in an antiquated tech environment. This gives a holistic view of guests and operations in a single, comprehensive view – a ‘customer 360.’

The customer journey can quickly unravel due to data silos, with guest needs not being adequately met or targeted at multiple touchpoints. Centralizing data means guests are better understood. This enables deeply personalized interactions, and much-improved guest engagement.

Real-life impact:
The lack of data integration prevented Acta Hotels from optimizing the guest experience. After implementing Cendyn CRM, the hotel group was able to efficiently capture guest profiles at each establishment, resulting in a complete and robust database. Capturing 143,000 unique customer profiles, Acta Hotels was able to create more targeted marketing campaigns and generate €600,000 in revenue in one year. Read more.

Get to grips with guests

Data silos cause multiple guest profiles to exist. Hotels therefore struggle to get a full view of their guests’ interactions and behaviors across different touchpoints, including the website, mobile apps, emails, and in-person at the hotel.

Identity resolution is a key step in centralizing data and understanding customers better. ‘Deduplicating’ guest profiles means identifying duplicate guest profiles sitting in multiple systems and consolidating them into one single profile. This leads to marketing precision. With this elevated knowledge about your guests, you can tailor targeted and personalized campaigns that resonate – and convert into bookings and revenue.

Use case:
A hotel has multiple databases across the business, on legacy systems that aren’t integrated. Through the implementation of Cendyn CRM with CDP and analytics, the hotel goes through a de-duplication process. The result is one centralized database with consolidated guest profiles, capturing everything the hotel has historically learned about each individual guest. This paves the way towards a strengthened, personalized, and more targeted marketing strategy ripe for increasing conversions and revenue.

True guest identities

In hotel marketing – emails, offers, social posts and more – inevitably speak to ‘you’. But how do you know who your prospective guests are, and what are those golden nuggets that really appeal to them? Skin-deep personalization doesn’t drive bookings, engagement, or guest satisfaction.

Interrogating analytics on centralized guest profiles completely shifts this. This data means communication can be customized, the ‘right’ amenities can be showcased to guests, and offers can be created based on the high-quality information your system holds. Personalized experiences increase loyalty, retention, and the lifetime value of guests.

Real-life impact:
Sircle Collection was struggling to leverage guest data held across different departments. After implementing Cendyn CRM, the hospitality group expanded its information-gathering capabilities and increased unique profiles in the database by 95% in two years. Sircle subsequently implemented strategies to deliver more personalized guest experiences, which increased email open rates by 45% and led to a 73% growth in the Sircle Club loyalty program. Read more.

Towards hyper-personalization

Centralizing guest data to create unified profiles already strengthens your knowledge of their preferences, plus their preferred services and amenities. But a unified and advanced CDP can take this understanding a step further, helping segment audiences to drive in-depth personalization.

With the trend of hyper-personalization being hyper-relevant in travel and hospitality, it’s becoming necessary to define very niche audiences and segments. Identify that segment of die-hard foodies, and you’ll sell out a weekend package featuring an exclusive menu designed by a top-name chef – no-problem. Discover those guests who used concierge services to book a local boat trip, and you’ll craft a package that incorporates an elevated water-themed experience to tempt them back another time.

Real-life impact:

Port Hotels faced challenges in streamlining processes and effectively segmenting its audience based on preferences and buyer personas. After implementing Cendyn CRM, the hotel group automated Welcome campaigns with integrated forms to collect valuable information about guest preferences. Enabling enhanced segmentation, Port Hotels increased its email open rate, and 60% of the campaigns sent generated a booking. Read more

Remove mystery with AI

Having centralized guest profiles and systems – managed by an integrated CDP and analytics – takes a lot of mystery out of guest needs and preferences. But it doesn’t necessarily answer ‘why?’ Why does a guest have particular stay preferences? Why does one communication channel perform better than another one?

This is where AI-powered analytics comes in. Once you start consolidating data and therefore developing very robust guest profiles, there’s some work that needs to be done to interpret it all. AI-powered analytics can help answer these ‘why?’ questions, while automatically identifying trends and business drivers. This gets to the heart of data instantly, saving time and resources, while feeding into strengthened marketing campaigns.

Use case:
A hotel is on a positive path towards improving the customer journey, by centralizing guest information through Cendyn CRM with CDP and analytics. Marketing campaigns are now more personalized and targeted and are driving bookings and revenue. To improve performance further, the hotel implements AI-powered analytics. Flagging trends in real-time, marketing campaigns become even more nuanced and relevant, taking bookings and revenue to the next level.

The power of a unified CRM + CDP solution

Data silos are becoming an increasing problem for hoteliers operating in a world where hyper-personalization is the expectation. A dated and sluggish tech landscape is holding hotels back.

But shifting towards a future of centralized guest profiles holds a lot of potential. Combining CRM and CDP capabilities with advanced analytics transforms hoteliers’ ability to enhance their marketing, operations and revenue.

It’s a crucial way to Find the right guests based on deep knowledge, entice them to Book, and for a hotel to Grow the customer experience, loyalty and revenue.

Tina Markowitz, Vice President, Global Digital Strategy, oversees the data-driven digital strategy of Cendyn’s hospitality customers. Markowitz provides clients with both holistic and innovative digital planning to achieve business goals and deliver results. With over 10 years in integrated digital marketing leadership positions, Markowitz previously held positions at Zimmerman Advertising, with former roles at SapientNitro, Media Storm and Time, Inc.

About Cendyn

Cendyn is a global hospitality cloud-based technology company that enables hotels to Find, Book, Grow – driving revenue, maximizing profitability, and creating deeper connections with guests through its integrated solutions.

Serving hoteliers for nearly 30 years, Cendyn has over 32,000 customers in more than 150 countries including brands Outrigger Hospitality, Hyatt, IHG, Aman Resorts & Hotels, Relais & Châteaux, Banyan Tree Hotels & Resorts, Coraltree Hospitality, and Onyx Hospitality Group – generating more than $20 billion in annual hotel revenue. The company supports its growing customer base with offices across the globe.

To find out more, visit cendyn.com.