Data-driven hospitality

Last week we held a webinar focusing on ROI and data-driven hospitality design. Here we provide a summary of the webinar, a link to the recording and a white paper on this topic at the end of this article. We looked at the potential of a data-driven approach to maximising ROI, whilst embracing a new guest value proposition for how people travel, work and relax.

We have seen the impact of revenge travel, post Covid, which has resulted in a backlash against tourism of late, and it shows how important the role of hospitality is in both community engagement, and aiming towards net positive and regenerative tourism, and experiential journeys.

Data driven design
When we talk about data-driven design, we are really talking about the use of many data points, or metrics, to make informed decisions to deliver a successful viability assessment, or design, that will ultimately deliver a successful project.

The cost of delay is the biggest unaccounted-for cost in any project. Particularly relevant in hospitality, where delay means lost revenue, to an operating asset, it can also mean lost reputation. Value engineering has nothing to do with value or engineering, but it seems to be the default to market pressures.

Imagine a world where we can reduce cost, say build less GFA, and increase revenue, for a higher return per metre squared. We can also adjust the metrics to adapt to budget pressure and effectively save time and money on any project. Data driven design in hotels is one way of validating this process.

Adaptable space planning
As guest preferences shift towards more dynamic and multifunctional environments, hotels are increasingly embracing more adaptable space planning. The ability to configure spaces to suit work, leisure, and social interactions can deliver on several fronts, not least being the potential to activate more revenue generating space, aligned with operational efficiency, to deliver a more personal guest experience.

There is a real need for hotels now to offer so much more than a place to sleep and eat breakfast. The greater focus on work-life balance & "work from anywhere” means that there is a real opportunity for hotels to sit at the centre of the community, and provide a space to work, rest and play.

This does create a challenge, and that challenge being, how hospitality can benefit from this shift in value proposition and guest demographic. From a data-driven planning perspective, we have certainly seen a move towards better activation of space to increase revenue potential. In this regard, this is where we can deliver that higher revenue per square metre.

As guest preferences shift towards more dynamic and multifunctional environments, hotels are increasingly embracing more adaptable space planning.

Sustainability
Sustainability is no longer an added element in hotel design, it is a business imperative. Circular economy principles reduce environmental impact, enhance brand reputation, and deliver cost efficiencies through responsible resource management. As these practices continue to be refined and expanded, circular design will redefine the construction, operation, and experience of hotels, showing that a sustainable future is both attainable and indispensable.

Hyper-personalisation
AI-driven data analytics are redefining guest experiences and enabling hyper-personalisation at scale. By leveraging data, hotels can tailor their services, improve operational efficiencies, and optimise revenue management strategies. Using AI, IoT, and data-driven design, the hospitality sector can now deliver personalised guest journeys that evolve and respond in real-time. This change extends beyond service as it focuses on creating spaces that adapt to each guest, enhancing comfort, convenience, and connection.


Finally we discussed how the right approach can impact the flexibility and therefore the longevity of hotel assets, including sustainability and materiality, but we know that there is also a huge market to carry these approaches into the hotel renovation or repositioning market, again to capitalise on current and future trends.

For existing, and underperforming hotel assets, the success of a renovation, repositioning, or rebranding project depends on a clear strategy, coupled with an understanding of the operating dynamics of the hotel. A data-driven approach and methodology, that considers wider impact of both operational, as well as guest sentiment and feedback data, provides the most substantial impact relative to the time and investment required, setting the foundation for a successful project. A well-planned and executed project not only enhances the guest experience but also delivers strong ROI.

Paul Boldy

View a recording of the webinar

Download The Future of Hospitality white paper