As hotels across the globe continue to adapt to an evolving industry, guest loyalty is becoming more difficult to secure. Tony Marshall, Vice President and Managing Director of Agilysys, APAC, shares his insights into how hotels can leverage data to drive loyalty and elevate the guest experience.
By harnessing technology, understanding guest preferences, and embracing personalised interactions, hotels can enhance both loyalty and revenue. Below, we explore how data insights are reshaping hospitality.
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The role of technology in personalising the guest experience
The use of technology in hospitality is no longer confined to streamlining operations.
According to Tony Marshall, Property Management Systems (PMS) have evolved beyond their traditional role to become the backbone of personalised guest experiences. “What’s really compelling is the data behind this shift,” Marshall explains.
“Agilysys’ 2024 APAC Hospitality Impact Study revealed that 30% of guests spend more when staff can recall their previous conversations. It’s not just about recognising a guest’s name – it’s about meaningful interactions powered by intelligent systems.”
This emphasis on personalised guest service is vital in meeting the shifting expectations of today’s travellers. Marshall points out that while traditional metrics like RevPAR are still important, the rise of Revenue Per Available Guest (RevPAG) is changing how hotels approach guest engagement.
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By GlobalDataThe 2024 APAC study showed that 73% of guests would likely rebook when experiences are tailored to their preferences, providing a clear opportunity for hotels to increase both loyalty and revenue.
However, Marshall cautions that despite the growing role of technology, the human touch remains paramount. “46% of travellers still value friendly staff who go the extra mile,” he says. “The most successful innovations are those that enhance, rather than replace, human interactions.”
Identifying your Unique Selling Proposition (USP) through data insights
In the competitive world of hospitality, hotels must differentiate themselves to attract repeat guests. According to Marshall, the key to developing a unique selling proposition (USP) lies in understanding guest behaviour.
“What’s really changed the game is our ability to let actual guest behaviour guide USP development, rather than just guessing what might work,” Marshall explains.
The Agilysys study underscores the importance of personalised recommendations. For instance, 41% of guests spend more when they receive personalised recommendations from staff during their stay, and 26% value personalized touchpoints, whether through staff interactions or self-service options.
These insights show that seemingly small, personalised gestures can be key to creating a hotel’s unique identity. Marshall cites successful examples where hotels have leveraged guest insights to craft USPs that go beyond traditional amenities.
“Some properties are focusing on creating highly personalised experiences, backed by data showing that 68% of APAC travellers would spend more when offered experiences tailored to their individual preferences,” he says. “It’s not just about having a spa or restaurant anymore – it’s about creating a unique, data-driven approach to hospitality.”
Using data and AI to build loyalty
Marshall believes that the path to increased guest loyalty lies in understanding guests on a deeper level. The 2024 Agilysys study revealed that 68% of guests are more likely to spend more when hotels effectively personalise their stay, highlighting the role data plays in shaping loyalty.
“Small gestures, such as remembering a guest’s dining preferences or providing them with their favourite room, can have a surprising impact on loyalty,” Marshall says. “30% of guests will spend more when staff recall previous conversations, and 28% of guests will increase spending when restaurant staff remember their food and drink preferences.”
AI is also playing an increasingly vital role in personalising guest experiences. “AI’s ability to analyse guest data in real-time is a game-changer,” Marshall says. “It can turn guest data into actionable insights that drive satisfaction and revenue. For example, AI can help identify patterns in real-time, predicting the kinds of experiences guests are likely to appreciate.”
However, while AI provides significant benefits, Marshall stresses that technology should complement, not replace, the human element. “46% of travellers value friendly staff who go the extra mile,” he says. “The most successful AI implementations are those that empower staff to create better guest experiences.”
Hotels are using data insights not only to enhance guest satisfaction but also to ensure guest loyalty by creating consistent and personalised experiences. This data-driven approach to hospitality is creating memorable moments that encourage guests to return time and time again.
Overcoming challenges in data-driven hospitality
While the potential of data-driven hospitality is immense, Marshall acknowledges the challenges that come with it. One of the biggest hurdles is the integration of data across multiple touchpoints. “Many hotels are sitting on goldmines of guest data, but they’re stuck in silos,” Marshall points out.
“When we see that 66% of guests would spend more with reduced wait times across all experiences, that’s a direct challenge to these fragmented systems.”
Creating an integrated platform that connects all touchpoints is key to overcoming this challenge. Marshall also highlights the importance of balancing technology with the human element.
“Training staff to effectively use data-driven tools while maintaining authentic interactions can be tricky,” he says. “The sweet spot is when technology enhances, rather than replaces, these personal connections.”
Lastly, the growing concern around data privacy presents another challenge. Marshall stresses the importance of transparency in how guest data is used. “Guests want personalised experiences, but they’re also conscious of privacy,” he explains. “Success lies in being transparent about how data enhances their experience while maintaining robust security measures.”
The takeaway
As Tony Marshall highlights, the future of guest loyalty in the hospitality industry lies in the effective use of data to personalise experiences, identify unique selling propositions, and drive meaningful connections with guests.
By leveraging technology and AI to create tailored experiences, hotels can foster loyalty and increase revenue. However, it is crucial to maintain the human touch and ensure privacy is respected.
For hotels willing to embrace data insights and innovation, the rewards are clear: a loyal guest base, increased revenue, and a competitive edge in the hospitality industry.
