Defining personalization: How can hotels increase their service in 2024?



Hotels want to make a personal connection with their guests and they need to use data to do so. However, guest preferences have been constantly evolving over the past three years, creating challenges for hotels looking to deliver the new levels of personalization that travelers expect in this technology-dominated era.

The unlikely part of this story is how the revenue management has become essential to providing true personalization to the hospitality industry. Thanks to their position at the crossroads of most impactful customer data, revenue managers have been called upon to lead the development of new levels of personalization across the industry.

If hoteliers want to attract new guests in 2024, they must examine new key performance indicators and emerging data that influence purchasing decisions to prioritize their efforts. Here are some questions you should ask yourself:

  • Why guests stay at specific hotels ?
  • Most importantly, what attracts them to specific regions ?
  • Where do your ideal travelers come from and what is the acquisition cost? ?
  • What is a traveler’s total budget when traveling and where is it spent? ?

The goal of revenue management through micro-segmentation is to attract and engage customers, which is most effectively achieved by providing more personalized and relevant offers and packages during the booking process. A personalized offer or package can include room types, amenities, services, and incentives based on the guest’s past experiences. Custom packages can also exclude attributes that these guests would otherwise refuse to purchase, and this is all backed up by hotel revenue management data.

There are many amenities in hotel rooms, but operators must think beyond the room to offer guests true personalization. For example, hotels can offer a pre-arrival experience before check-in, different options for an extended check-out, and more. Each hotel can leverage these attributes as upselling opportunities in addition to the personalized offers that each hotel uniquely offers.

Travelers, like hoteliers, are much more accustomed to using technology in their daily lives. Before the pandemic, hotels could expect that guests would need some assistance to successfully navigate the reservation process. Today, travelers are much more digitally mature and their first point of contact when booking is the internet. Companies and hotel operators need to invest more in their digital presence to continue attracting travelers to their establishments. Better images, direct messaging and targeted packaging will be necessary for hotels to remain competitive in this new era of technological dependence.

Once hotels adopt these strategies, they will be able to view their entire property as a total asset, rather than a collection of rooms connected by public spaces and, in some cases, a restaurant or two. In this way, operators will be able to fully exploit the potential of a hotel asset, but this requires an advanced data creation strategy supported by good data hygiene, all underpinned by revenue management.

By Guillaume Sardain, Sales Director France, BENELUX, Switzerland and North Africa

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