Digitalization: How good are you?

By Michael Toedt - Managing Director at Dailypoint Gmbh

Visit us at HITEC booth 2246
11 August 2017
  • How good are you?

Toedt

Everyone is talking about digitalization, whether big or small experts, self-proclaimed hotel gurus or just imposters. But what is it really all about? Why are some companies so extremely valuable and other so worthless? The big problem of the hotel industry is, that you can´t find the benchmarks where you commonly would suppose them. In almost every branch, the top of the class with the highest market penetration is also the leadership, of whom everyone could learn a thing or two. In the automotive industry for instance, Tesla is clearly the status quo at the moment. A startup which shows the established ones how the wind blows.

However, do the Marriott´s and Hilton´s of this world suit to copy their strategies to know how you can gain profit with the digitalization? Certainly not. The only ones which should be seen as benchmark, are the biggest bogeymen right now: The Online Travel Agents. They show every hotelier, how central data-management and a consequent customer orientation in the BIG DATA age should look like. The secret of these companies is really simple. They identified, that data is extremely valuable.

Nowadays, data will be compared with an energy source like oil. But in the end, oil is only the raw material, which needs to be refined to use it. So how can you get the worthwhile petrol out of the oil? In a transferred sense – how can you generate knowledge out of data? A central element is that all company data sources have to be connected. This is a basic rule, which all data driven companies consider in every decision.

Getting there is strategy. Hotels need an Above-Proberty System, which combines all data sources, cleanses the existing amount of data and after that, creates a central profile for every guest. With an Artificial Intelligence, the interests of a guest have to be calculated automatically. The next step is to develop a holistic CRM, based on this new comprehensive knowledge. The fields Marketing, Operations and Analysis need to be covered with this strategy. By the way, this is the Elevator Pitch of dailypoint™!

Ask yourself and also your employees how well you´re really prepared!

The following five questions should give you a hint:

  1. How much does your website cost per year, including creation, SEO and SEA?
    • How many visitors per day can you identify on your website?
    • How many marketing profiles have you generated with your internet presence in the past year?
    • How many interests have been calculated in the past year?
  2. How much does your WLAN cost per year, including hardware, software and bandwidth?
    • How many new marketing profiles have you generated with your WLAN the past year?
    • How many interests have been calculated in the past year?
  3. How many interests have you calculated based on the booking habits?
  4. How many interests have you calculated based on the feedback on your questionnaire?
  5. How many interests have you automatically calculated based on the newsletter dispatch?

It´s been my experience, 99,9 % of hotel companies have to answer these questions with "ZERO". This responds as well, why a lot of companies don't gain profit out of the digitalization. The positive thing, hospitality industry has so much data, you only have to know the right way to use it.

"Data is the new Oil but intelligence is needed to get petrol out of it".

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dailypoint™

Augustenstr. 79
Munich, 80333
Germany
Phone: 49 89 189 35 69 0
www.dailypoint.com

Michael Toedt

Operating at the intersection of business and technology, Dr. Michael Toedt helps hoteliers with the software dailypoint™ to use the tremendous increase of data in order to become data-centric. Dr. Michael Toedt has over 25 years of experience in operations, technology and marketing. He is the author of several books – among others the German version “Big Data – Herausforderung und Chance für die Hotellerie (ISBN: 978-3-8751-5305-7) and “Data Revolution – How Big Data Will Change the Way of Doing Business” (ISBN:978-3–7375-1688-4) and his articles are published by journals on a regular basis. Dr. Toedt holds a doctoral degree in management science. He is lecturer at several universities and assistant lecturer at the University of Applied Sciences of Munich for the subject “Customer Relationship Management in Tourism”. Apart from this he speaks at various hospitality events and fairs such as ITB, HITEC, Internorga, Austrian Hotel Society ÖHV or Cornell Hotel Society.

Michael Toedt

Managing Partner, CEO
info@TS-and-C.com