Data First! – Health Check in the Digital Age

The success formula in marketing is quite simple: The further the reach, the better the results. For direct marketing this translates to: The larger the target group, the more bookings can be generated through a hotel’s proprietary website.

Time for a Change

Time for a Change

How to reach up to 100,000 prospective customers

“Data First” should be the key maxim for marketing! Thus, the main focus should be on collecting as much data as possible from existing and prospective customers to be able to use them for marketing purposes. In the digital age, the creation of marketing campaigns has become very simple. The costs for dispatch – once the limiting factor in customer relationship management – are no longer relevant. With an investment of only € 1,000, it is possible to reach up to 100,000 contacts. The cost per thousand contacts has always been a key indicator. These costs have decreased significantly for e-mail marketing.

 Do you know the marketing potential of your hotel?

What is the number of guests a hotel should be able to communicate with in the Big Data era? Here an example:  A 100-room hotel with an average occupancy of 80%, an average length of stay of 1.5 days, a double-occupancy factor of 25%, as well as 5,000 external conference guests, should be able generate approx. 25,000 guest profiles per year. In less than five years, this hotel should be able to communicate with more than 100,000 guests, despite considering a loyalty factor of 20%.

This number is much lower in most hotels, which means that there is unleveraged revenue potential. The booking rate for an average newsletter to existing clients is about 0.25%. One single e-mail campaign to 100,000 contacts, has a revenue potential of more than € 60,000, calculating with an average revenue of € 250 per booking. With our dailypoint™ software you can precisely measure the success of each marketing campaign. With the right strategy, you can collect the full contact details of about 85% of your guests, including daytime visitors and partners. Any business, which fails to achieve this, should start taking action.

Are you ready for theDigital Age?

Managers should analyze their company’s fitness for the digital age. The basis for all measures is the contact database and the number of profiles, which can be used for marketing measures. If less than 85% of the profiles are usable, the company has some deficits. These can exist for legal, technical or organizational reasons. But since acquisition of new clients is up to 10 times more costly than managing existing clients, there is a negative impact on the marketing expense.

New company valuation models are being introduced that also evaluate the number of available client profiles. So far, these models are not applied for the hospitality industry, as the importance of digitalization in this industry is not yet understood. But this will definitely change over the next couple of years. Hoteliers should be prepared and put a focus on their digitalization strategy. Not design or content play the main role in marketing, but the data collection.

With the Reality Check, we can help you to find out how fit you are for the digital age. For further information, please call 089 189 35 69 0 or contact us at RealityCheck@dailypoint.com.

How Secure is Your Data?

After the latest hacker attack, access data of around 1 billion Yahoo users became available on the web. It is quite alarming to see that most people utilize the same user name and password for a variety of sites. What seems so practical is, however, extremely dangerous and should be avoided in any case.

The security of your password has top priority

Do not give hackers a chance!

In the following, I would like to give you some tips on data security. At dailypoint™, we have very strict password rules to ensure security of the highly sensitive data of our clients. Slight alterations in your password rules can have a huge effect on your data security.

When the insurance does not pay

Password security is pure mathematics. The higher the number of possible combinations, the longer it will take to hack them. Hardly anyone is aware that nowadays it only takes a few seconds to hack a password. This is, of course, a tremendous problem. The passwords we use at dailypoint™ have at least 13 characters, contain upper case and lower case, numbers, and special symbols. Yes, that is long and more complicated than the four, six or eight digit passwords, which are mostly used. But this effort makes a huge difference! Do you know that in case of a claim, insurance providers may deny coverage due to gross negligence, if they consider the password rules to be insufficient? This could be disastrous and put managers in trouble when it comes to potential liability claims.

3 years to hack a password

Today, passwords are hacked with so-called Brute-force attacks. These are computer programs, when used professionally, have extreme processing power across networks and are thus able to check a huge number of combinations per second to identify the right match. This means that a six-digit password can be hacked in less than a second! But now mathematics comes into play. It already takes 1.5 minutes to hack an eight-digit code. And if the length and the number of symbols are increased, the number of potential combinations rises exponentially to, for example, 2.000285392686698+23 for the passwords we use at dailypoint™! That means it would theoretically take 2.9 million years to hack one of our passwords. This proves that a slight alteration in the password rules you can definitely enhance your data security!

We highly recommend that you not only review your password rules, but also check the security concepts of your partners. Make it your responsibility and avoid any negligence.

 

How to Generate Revenue with Social Media

Most hoteliers associate the term Social Media with Twitter, Facebook or Instagram. But there is much more to Social Media. Facebook & Co. are one aspect, the other important part is rating portals. Communities are nice and valuable, but money is made through TripAdvisor, HolidayCheck, and Google+.

Social Media has a long-lasting effect on the sales and marketing strategy

Social Media has a long-lasting effect on the sales and marketing strategy

Continue reading

The Half-Life of Knowledge

Never before has change been so omnipresent like today. And never before has it been more important to stay up-to-date and to expand ones knowledge. Such statements can be seen a lot. And they are true! Big Data, the hot topic of the past months, confirms this.

In 1965, Gordon Moore, one of the founders of Intel, postulated that processor speed would double every 18 months and network capacities every 9 months. Back then, only a few people understood what this meant. More than 50 years ago, Gordon Moore already predicted how fast our world would change. This means that, if the development continued at the same speed, computers will be 64 times faster than today by the year 2026! It is hard to imagine the possibilities this would bring.

shutterstock_258654533_komprimiert

Big Data: See light at the end of the tunnel and go with the flow!

Continue reading

The Lucky Bag: WLAN

Data has become the new gold in the Big Data era. When you look at the business value of companies such as Booking.com, AirBnB or Uber you can see the immense value of data. All these companies would have no basis for existence without the data they are generating.

Hotels also create huge amounts of data. One massive data source is the WLAN, a system hardly anyone pays attention to or makes use of. This, however, is a big mistake! There are calculations according to which a 200-room hotel gives up around 280,000 Euros per year by not tapping into this potential.

WLAN-Nutzung in der Hotellerie

Not only guests but also the hotel can benefit from free wifi

Continue reading

Guest Loyalty stands and falls with the Use of your Data!

The fight for guests and their loyalty manifests in the booking behavior. In other words, guest loyalty stands or falls with the guest data. Only if you know your guests, their needs and expectations and how much they are willing to pay, will you be able to go up against the OTAs. Success does not depend on the size of a company, but on the management’s ability to adapt to the changing environment. In the end, it is all about Central Data Management (CDM).

sample 2000X2000

Central Data Management requires a rethinking of the hotel management

Continue reading

Hotel Investments: Invest in Big Data as long as your Competitors are still sleeping!

Each year, many hotel managers ask themselves what and how much they should invest in to meet the expectations of their guests. Without doubt guest satisfaction alongside communications is the most important variable influencing guest loyalty and repurchase behavior.

Thomas Reisenzahn, former secretary general of the Austrian Hotel Association and today managing director of GFB Prodinger Tourism Consulting, recently stated that one of the main reasons for the increasingly difficult situation of hotels in the Alpine region was false and costly investments. I completely agree. However, I believe that this statement is not only applicable to hotels in the Alpine region, but to hotels everywhere!

shutterstock_293606078

Continue reading

The Big Data Formula: BD = C²A²

Was um Himmelswillen ist Big Data?! Fast täglich werde ich gefragt, was es mit dem Thema auf sich hat. Und tatsächlich ist es gar nicht so einfach, Big Data jedermann einfach zu veranschaulichen. Obwohl das Thema rund um die intelligente Datennutzung nicht aktueller sein könnte – wie man den Medien tagtäglich entnehmen kann –  gibt es nur wenige Experten, die schlüssige Antworten liefern.

dreamstimemaximum_37716212 Kopie

Continue reading

Hotel Marketing – Stuck in the Year 2000

For more than 20 years, I have been working with digital media. In 2000, I started with marketing databases and CRM. Over the years, I have gained a pretty good overview of the activities within the hospitality industry, in particular when it comes to guest communication. Surprisingly, not much has changed in the past years. It seems to me that 99.9% of all hotels got stuck in the year 2000.

dreamstimelarge_37968084

Continue reading

Move with the times or be removed over time

Big Data or holistic and intelligent data management has become a popular topic within the hospitality industry. A lot of hotel companies talk about it, but hardly anyone is even close to doing it right. In my new book I predict that by the year 2020 many hotels will have disappeared for exactly that reason. But I have to admit I was mistaken – the process is already in full swing.

Secured Online Cloud Computing Concept with Business Man

Continue reading