To achieve success, hotels need a strong hotel data strategy that allows them to leverage guest information, preferences, and spending habits for personalized service, targeted marketing, and ultimately, increased revenue. Yet, many hotels find themselves in a frustrating paradox: drowning in data, but unable to truly utilize it. This is often due to their Property Management System (PMS), ironically, becoming a data prison.

How does a PMS become a data prison?

Instead of being a tool for liberation and insight, many Property Management Systems ironically become digital prisons, trapping valuable guest data within their confines. This happens in several ways. Firstly, many PMS systems operate as closed ecosystems, hindering the seamless flow of information to other essential hotel software. Imagine needing to analyze guest satisfaction surveys from your CRM alongside spending data from your PMS, but being unable to do so because the systems simply don’t communicate. This lack of integration creates data silos, preventing a holistic view of the guest journey and hindering effective analysis. It’s like having pieces of a puzzle scattered across different boxes, making it impossible to see the complete picture.

Furthermore, even accessing the data within the PMS can be a struggle. Hotels often encounter restrictive data export procedures, limited data formats, and even vendor-imposed fees that hinder their ability to extract and analyze their own information. This can be incredibly frustrating when trying to perform tasks like analyzing booking patterns by nationality or sharing guest stay history with a loyalty program provider. Without a proper hotel data strategy, the PMS, instead of empowering hotels with their own data, becomes a gatekeeper, restricting access and limiting their ability to utilize it effectively.

Adding to the challenge, data integrity issues can plague a PMS, especially when it’s not properly maintained or integrated with other systems. Manual data entry errors can lead to duplicate guest profiles, incorrect contact information, and inconsistencies that compromise data accuracy. Imagine the problems this can cause with communication, personalized service, and even revenue management when room availability discrepancies arise from a poorly synced booking engine.

Finally, hotels can find themselves overly reliant on their PMS vendor for even basic data analysis and reporting. This dependency can be costly, time-consuming, and ultimately limit a hotel’s ability to explore data-driven initiatives independently. Whether it’s generating a custom report on restaurant spending or implementing a new marketing automation tool, relying on the vendor’s timeline and priorities can significantly hinder a hotel’s agility and ability to innovate.

The consequences of data imprisonment:

• Missed Opportunities for Personalization: Personalization is key to exceeding guest expectations and fostering loyalty. A data prison severely limits a hotel’s ability to tailor guest experiences. Imagine not being able to recognize a returning guest’s preferences, from their preferred room type and amenities to their dietary restrictions or past service requests. This lack of personalized service can lead to a generic and forgettable experience, diminishing the hotel’s ability to build lasting relationships with guests. A strong hotel data strategy is essential to leverage the ability to offer customized packages, promotions, and upselling opportunities that cater to individual needs and preferences, ultimately impacting revenue potential.
• Ineffective Marketing Campaigns: Marketing in the hospitality industry relies heavily on targeted messaging and relevant offers. When guest data is trapped in a PMS, hotels struggle to segment their audience effectively. This leads to generic marketing campaigns that reach a broad audience but fail to resonate with individual needs. Imagine sending a promotional email about family packages to a business traveler or advertising spa deals to a guest who has never shown interest in wellness services. This lack of precision not only reduces the effectiveness of marketing efforts but can also lead to guest frustration and disengagement. Furthermore, it prevents hotels from developing a comprehensive hotel data strategy that leverages valuable insights about guest behavior and preferences to optimize marketing spend and maximize ROI.
• Limited Revenue Management Capabilities: Revenue management is a data-driven discipline, and a PMS should be the central hub for all relevant information. However, when data is fragmented and inaccessible, hotels face significant challenges in optimizing revenue strategies. Imagine trying to forecast demand without accurate historical data on occupancy rates, booking patterns, and guest segments. Or consider the difficulty of implementing dynamic pricing strategies when real-time data on competitor rates and market trends is not readily available. This lack of data agility, often stemming from a poor hotel data strategy, hinders a hotel’s ability to adjust pricing, manage inventory, and maximize revenue potential in a dynamic market.
• Stunted Innovation: Innovation is always essential for staying competitive and meeting changing guest expectations. A data prison severely limits a hotel’s ability to embrace new technologies and develop innovative solutions. Imagine wanting to implement a mobile concierge app that allows guests to personalize their stay but being unable to integrate it with the PMS to access real-time information on room availability, services, and guest preferences. Or consider the challenge of developing data-driven strategies to improve operational efficiency, enhance guest satisfaction, and create new revenue streams when access to comprehensive data is restricted. This inability to leverage data for innovation hinders a hotel’s ability to adapt to market trends, personalize the guest journey, and ultimately thrive in the long term.

Breaking free from the data prison:

• Choose open and integrated PMS solutions: Don’t settle for a PMS that operates in isolation. Prioritize systems that are built with open APIs and embrace integration with other vital hotel software. Look for a PMS that seamlessly connects with your CRM, revenue management system, marketing automation tools, and other platforms crucial to your operations. This allows for a free flow of data, eliminating data silos and empowering you with a 360-degree view of your guests. Ask vendors about their integration capabilities, explore case studies, and request demos to ensure the PMS can truly connect with your existing technology stack.
• Demand data ownership and accessibility: Your guest data is a valuable asset – developing a robust hotel data strategy requires more than just choosing the right PMS. It also involves demanding data ownership and accessibility. When evaluating PMS solutions, insist on clear data ownership rights and ensure the system provides easy access to your data. Look for features that allow you to extract data in various formats without limitations or exorbitant fees. Ensure the PMS offers robust reporting capabilities and customizable dashboards to give you the flexibility to analyze data according to your specific needs. Don’t be afraid to negotiate data access terms with vendors and prioritize solutions that empower you with data ownership and control.
• Invest in data cleansing and maintenance: Even with the best PMS, data integrity is crucial. Implement a robust data governance strategy to ensure your data is accurate, consistent, and up-to-date. Regularly audit your PMS data for duplicates, errors, and inconsistencies. Establish clear data entry protocols and train your staff on best practices for data management. Consider using data cleansing tools to automate data validation and correction processes. By prioritizing data quality, you can ensure that your PMS remains a source of truth and provides reliable insights for decision-making.
• Develop data analysis capabilities: Don’t just collect data – learn to extract meaningful insights from it. Invest in training your team on data analysis techniques and tools. Explore data visualization platforms to create compelling reports and dashboards that communicate key findings effectively. Consider partnering with data analytics experts or consultants to gain deeper insights into guest behavior, market trends, and revenue opportunities. By fostering a data-driven culture and empowering your team with analytical skills, you can unlock the true potential of your PMS and turn data into actionable strategies.

Unlocking Your Hotel’s Data Potential

While the steps above outline a path to greater data freedom, a dedicated data platform can truly revolutionize how your hotel manages and leverages its information. Otello HoDP (Hospitality Data Platform) offers a compelling solution to the challenges of data silos, limited access, and vendor dependency.

With HoDP, hotels can:

• Achieve a unified view of their data: HoDP aggregates data from various sources, including PMS, CRM, and other hotel systems, providing a centralized and cohesive view of guest information.
• Democratize data access: HoDP enables secure data sharing across the organization, empowering different departments with the information they need while maintaining proper data governance.
• Enhance data integrity: HoDP’s centralized database ensures data consistency and accuracy across all hotel departments, from finance and operations to sales and marketing.
• Gain real-time insights: HoDP’s real-time connectivity and API access enable hotels to monitor key metrics, identify trends, and make data-driven decisions with agility.

By embracing a data platform like HoDP, hotels can break free from the limitations of their PMS and unlock the true potential of their data. This leads to improved guest experiences, optimized operations, and increased revenue.

The future of hospitality lies in leveraging data to create exceptional guest experiences and drive business growth. By recognizing the potential for data imprisonment and taking proactive steps to break free, hotels can unlock the true value of their data and thrive in the competitive hospitality landscape.