Most of the early adopters have been travel agencies, digital players and airlines. Processing Big Data is an investment, requiring equipment that can handle a constant stream ranging from a few dozen terabytes to many petabytes of data in a single set, according to an article published in the International Journal of International Science in 2012.

The good news is the cost of storage is getting cheaper. Loren Gray, director of ecommerce for Ocean Properties Limited, says the price went “from $1.30 per gigabyte of data 10 years ago to about 2.3 cents per gigabyte at present,” in a recent article for HotelNewsNow.com. 

However, raw data only becomes truly powerful when analyzed and turned into information. From there, knowledge can inform decisions to more effectively reach consumers.

Hotels can and should make the most out of big data mines. A major recent study attests to the transformation the hospitality industry is undergoing with big data analytics.

The independent global study “At the Big Data Crossroads: Turning Towards a Smarter Travel Experience” included senior executives from more than 20 companies in the travel industry, Hospitality.net reports. The study revealed that big data analytics helped enhance revenue management by optimizing room pricing and minimizing the number of empty rooms.

Big data also assisted in well-informed investment decisions, where small scale tests of new investments before a full-scale rollout help avoid sunk-cost mistakes. And, better relationships with hotel guests can be formed due to the aggregation of data across the hotel’s divisions.

The study showed that big data can lead to better marketing and customer service efforts, increasing the likelihood of customer retention and sales. For hotels, that means staying relevant in an increasingly digitalized market.

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