Big Data Challenges: How the Hospitality Industry Is Affected

Big Data Challenges: How the Hospitality Industry Is Affected

Hotel companies that can tackle big data and integrate it into their businesses create a competitive advantage with a possible probability of 60 percent or more, according to an industry report.

But the problem isn’t convincing the industry to embrace big data, it’s facing the big data challenges involved. From big data disasters to encryption and data analysis paralysis, the hospitality industry is looking for data solutions to keep scaling.

Data disasters

Relying on a collection of on-site servers to backup data is both time consuming and vulnerable. If a server goes out, data is lost and forces employees to perform basic operations manually.

The situation is direr if a server is hacked and the hotel is liable for the leak of a customer’s sensitive data and credit card numbers.

Switching to a business cloud-based backup system like Mozy can quickly capture terabytes of data and can easily be restored to just about any device if your systems go down.
For example, it took 10 of Starwood’s Australian five-star hotels to backup 4TB of data. After using a cloud-based backup provider, it took less than a minute.

You also enjoy the added protection that reputable cloud backup providers are following the latest encryption and industry standards available.

Encryption

Handling your data encryption is a disaster waiting to happen. It’s impossible to keep up with ever-changing malware threats, monitor for malicious activity, and stop hackers in their tracks.

Meanwhile, cloud-based data servers can provide military-grade security. Ask about their latest audits and certifications, including a SOC 1 SSAE 16 Type 2 audit and ISO 27001 certification.

With the strongest encryption available in place, the hospitality industry can focus on its bottom line while their data is being protected, processed, and stored in real-time.

The urgency for encryption doesn’t stop at hotel bookings and hotel point-of-sale information. As Wi-Fi becomes a must for personal and business travelers alike, the rise in malware attacks puts more customers at risk.

In 2015, Cylance Researchers discovered that 277 hotels, convention centers, and data centers across 29 countries were vulnerable to an attack via hotel Wi-Fi users’ connections.

If a guest or employee connects via Wi-Fi and connects to the malware, hackers can gain access to personal credentials and even control property management systems that hold guest booking details.

Data analysis

Hospitality-focused businesses capture an enormous amount of data that is wasted on customer loyalty programs. For example, hotels receive data on everything from what type of room a customer books and on what day, down to if their kids’ clubs, spa, or room service is utilized.

Instead of just focusing on the top layer of what your customers are doing, the data could be used to better understand different sectors of customers and how to attract new guests and retain old ones.

The challenge of data analysis in the hospitality industry is so pressing that DHISCO Inc, the world’s leading hospitality distribution company, partnered with the Innovation Greenhouse at the University of North Texas to come up with solutions.

One presentation included parsing data to see how group sizes impact the lengths of a stay. In turn, that data can be used to predict high occupancy periods and increased overhead versus fixed costs.

How well is the Hospitality Industry prepared for the Big Data Challenges that come at a very fast pace today? This is the moment where you finally can make an impact on new and renewed customers. Learn how you can start to make a new shift today below here.

Surprise and delight are what make dreams come true.

Be flexible and identify new ways to make guests happy.

As guest behavior and pattern continues to evolve, expectations will continue to rise. Navigating these changes can be challenging. Learn more about how we can help your Hotel.