Unlocking Hotel Data: Why Hoteliers Must Invest in Data Warehousing

The hospitality industry is evolving rapidly, and data is at the heart of this transformation. To stay competitive, hoteliers must harness the power of data analytics, and investing in a data warehouse is a critical step in this journey.

In today’s digitally driven world, leveraging data isn’t just about keeping up with trends—it’s about survival in a highly competitive hotel market. In the past, Google Analytics could largely address the needs of hoteliers for topline digital performance as well as some slightly more intricate analysis. However several factors have dramatically changed the analytics landscape over the past few years:

• The transition from Universal Analytics to GA4
• The inability to tie together data points from various online and offline sources
• The ever-evolving competitive landscape requires a deeper understanding of performance data and trends

The rise of big data and analytics has opened new avenues for enhancing guest experiences, optimizing operations, and boosting revenues. However, the key to unlocking these benefits lies in effectively managing and analyzing vast amounts of data, which is where data warehouses come into play.

Understanding Data Warehouses

A data warehouse is a centralized repository that stores structured data from multiple sources within an organization. Unlike regular databases that handle day-to-day operations, data warehouses are designed for query and analysis, providing a historical data perspective over time.

Data warehouses differ from other storage solutions by allowing businesses to run complex queries and generate reports that aid in strategic decision-making. They consolidate data from various departments—such as reservations, customer service, and finance—into a single source of truth.

Why Google Analytics 4 (GA4) Isn’t Enough

Google Analytics 4 (GA4) is a powerful tool for tracking website and app interactions. However, it has a significant limitation: It only retains data for up to 14 months. For hoteliers, this poses a problem. The hospitality industry is highly seasonal, and understanding year-over-year (YoY) trends is crucial for strategic planning. Without access to data beyond 14 months, hoteliers cannot perform comprehensive YoY analyses, making it difficult to:

• Identify Long-term Trends: Seasonal fluctuations and annual events impact occupancy rates and revenue. Limited data hinders the ability to forecast accurately.
• Assess Marketing Effectiveness Over Time: Understanding how marketing campaigns perform year over year is essential for budget allocation and strategy refinement.
• Make Informed Operational Decisions: Staffing, inventory management, and other operational aspects often rely on historical data spanning multiple years.

In addition to data retention limitations, GA4 also employs data sampling when processing large datasets. This means that when a hotelier is analyzing data over extended periods or dealing with high volumes of traffic, GA4 may only use a subset of the data to generate reports. Data sampling can lead to less accurate or incomplete insights, which is problematic for making critical business decisions. Hoteliers require precise, unsampled data to fully understand guest behaviors, booking patterns, and market trends. Relying on sampled data can result in misinformed strategies that may adversely affect revenue and guest satisfaction.

The Solution: Why Hoteliers Must Invest in Data Warehouses

The need for a better data storage and analytics solution is obvious when considering all the shortcomings of GA4, particularly for larger hotel properties. However, beyond just the limitations of GA4, there are several benefits to migrating to a data warehouse. Many of the benefits go far beyond your traditional web analytics. And while supercharging your web/online data is critical, below are additional ways a data warehouse can drive hotelier success. 

• Centralized Data Management: Hotels generate data from numerous touchpoints: online bookings, point-of-sale systems, customer feedback, and more. A data warehouse like BigQuery brings all this data together, eliminating silos and ensuring that every department operates with consistent information.
• Enhanced Decision-Making Capabilities: With centralized and extended data storage, hoteliers can perform comprehensive analyses to uncover trends and patterns over multiple years. This empowers management to make informed decisions based on accurate and historical information.
• Improved Customer Experience: By analyzing guest preferences and behaviors over extended periods, hotels can personalize services to enhance the guest experience. This could include tailored promotions, customized room settings, or personalized communication—all of which can increase customer loyalty.
• Revenue Optimization: Data warehouses enable sophisticated revenue management strategies. By analyzing market demand, booking patterns, and competitor pricing over several years, hotels can adjust their rates dynamically to maximize occupancy and revenue.
• Operational Efficiency: Streamlined data access reduces time spent on manual data compilation and reporting. This efficiency allows staff to focus on core activities like guest services and strategic planning.

Key Analytics Enabled by Data Warehouses

• Year-over-Year Trend Analysis: With extended data retention, hoteliers can compare performance metrics across multiple years, identifying growth patterns or areas needing improvement.
• Customer Segmentation and Personalization: By segmenting customers based on long-term data, hotels can tailor marketing efforts and services to specific groups, increasing engagement and conversion rates.
• Accurate Forecasting and Demand Prediction: Data warehouses facilitate advanced forecasting models that predict occupancy rates, staffing needs, and inventory requirements, helping hotels prepare for peak seasons and special events.
• Effective Marketing Analytics: Understanding which marketing campaigns are most effective over time enables hotels to allocate budgets wisely and refine their strategies for better ROI.

BigQuery as an Easy Data Warehouse Solution

BigQuery, Google’s fully-managed, serverless data warehouse, offers an effective solution to GA4’s data retention limitations. It seamlessly integrates with GA4, allowing hoteliers to export their analytics data directly into BigQuery. This integration provides:

• Extended Data Storage: Unlike GA4’s 14-month limit, BigQuery can store data indefinitely, enabling comprehensive YoY analysis.
• Advanced Analytics Capabilities: BigQuery supports SQL queries, allowing for complex data analysis that goes beyond GA4’s standard reporting.
• Scalability: As a cloud-based solution, BigQuery can handle large volumes of data without performance degradation.
• Cost-Effective and User-Friendly: BigQuery operates on a pay-as-you-go model, making it a cost-effective option for hotels of all sizes. Additionally, its user-friendly interface and compatibility with various business intelligence tools mean that hoteliers don’t need extensive technical expertise to leverage its capabilities.

Investing in a data warehouse is no longer a luxury but a necessity for hoteliers aiming to thrive in the modern marketplace. Limitations of tools like GA4 highlight the need for robust data storage and analytics solutions. By leveraging platforms like BigQuery, hotels can overcome data retention challenges, perform in-depth analyses, and unlock actionable insights.

The ability to harness data for strategic decision-making leads to enhanced guest experiences, increased revenues, and streamlined operations. As the hospitality industry continues to evolve, those who embrace data-driven strategies will be best positioned for success.

Now is the time for hoteliers to invest in data warehousing solutions like BigQuery and unlock the full potential of their data. TravelBoom Hotel Marketing can help you navigate the complexities of data warehousing and implement a solution tailored to your specific needs. Our team of experts can guide you through the process, from GA4 integration to advanced analytics and reporting. Contact us today for a free evaluation and discover how data-driven strategies can transform your hotel’s performance.

Pete DiMaio is the Chief Operating Officer at TravelBoom at TravelBoom. Connect with Pete on LinkedIn.

About TravelBoom Marketing

TravelBoom specializes in developing and executing customized data-driven marketing solutions that drive direct bookings and growth for its clients. With over 25 years of experience in digital marketing for travel and hotels, TravelBoom leverages advanced data science and analytics to uncover insights and develop strategies that greatly enhance results for our clients and reduce reliance on third-party channels. TravelBoom is also host of the world’s #1 ranked Hotel Marketing Podcast and its quarterly Traveler Sentiment Study both of which can be found at www.travelboommarketing.com.