• // Business Intelligence
  • // Data Warehousing
  • // Business Analytics

Case Study: Hospitality Company

Industry:
Hospitality
Company Type:
Major Hotel Chain
Company Size:
$11B
Job Functions:
VP Marketing, VP Sales
Solutions:
BI Strategy and Planning, BI Requirements Analysis, Custom Application Development

Challenge: How to identify, reward, and retain your best customers utilizing sales and marketing business intelligence (BI) applications that drive competitive success.

Winning in a Highly Competitive  Environment

With nearly $11 billion in revenue, over 3,400 properties, and the broadest portfolio of brands in the industry, our client is a worldwide lodging leader.  Each of the company’s brands competes with major hotel chains in national and international venues, and with independent companies in regional markets. Its ability to attract and retain business and leisure travelers depends on the quality, value, and efficiency of their hotels and motels.

The highly competitive nature of the lodging industry creates challenges in securing customer loyalty.  Further, business and leisure travelers have more power than ever to find the best deals online.  In this competitive environment, it is critical to have timely access to business information and analytical tools (business intelligence) that enable timely and cost-effective:

  • customer segmentation
  • revenue management
  • promotion targeting
  • pricing analysis
  • channel management
  • promotions analysis
  • customer loyalty tracking

Without such business intelligence (BI) capabilities, the company would be at a competitive disadvantage, which could limit operating margins, diminish market share, and reduce earnings.

Leveraging BI for Sales and Marketing

Prior to working with DecisionPath, sales and marketing professionals at the company used customer, property, promotion, and transaction information from multiple systems to perform their various tasks.  While this approach had worked to a degree, management recognized the opportunity to reduce BI costs and increase BI effectiveness by migrating to a unified data architecture and technical environment.  Without a more advanced architecture, sales and marketing professionals were limited in their ability to:

  • identify their most profitable customers
  • develop customer profiles for targeting purposes based on the profiles of their most profitable customers
  • develop customer segments based on customer profiles and customer transaction histories
  • understand what kinds of promotions/features worked best with various customer segments
  • determine the effectiveness of promotions
  • manage revenue attainment over the course of a given fiscal period
  • manage distribution channels
  • analyze and prevent defections from the loyalty program
  • target previous loyalty members for reactivation campaigns

Given the importance of BI for its competitiveness, the company recognized the need to take a holistic approach to integrating and standardizing the data that its sales and marketing professionals needed in order to achieve company revenue and market share goals.

A Business-Driven Lifecycle Approach to BI Deployment

The company selected DecisionPath as its partner for sales and marketing BI based on our ability to help customers integrate all information required to find and serve the right customers, our business-driven approach to BI and our ability to move its data warehousing and BI program in the direction of industry best practices.  Using our BI Pathway Method, we worked with the company’s sales, marketing, and BI teams to successfully develop and deploy a series of BI applications for revenue management and promotions analysis.  Specifically, we:

  • identified and documented BI requirements
  • performed an assessment of technical readiness (risk) to deliver a unified and integrated sales and marketing data environment
  • reengineered the existing technical environment and processes
  • developed BI applications for use by sales and marketing

Armed with better business information and analytics, the company’s sales and marketing teams were able to migrate to sophisticated BI applications for revenue management, customer segmentation, and promotions analysis.  More broadly, leveraging our expertise helped it compete effectively to attract and retain customers – they key to winning in the highly competitive lodging industry.

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