“We have so much data, but we still don´t really get much out of it,” was a recent lament from a major hotel chain. This is a common problem, so why is it so hard to turn data into quantifiable ROI?
The hospitality industry sits on a goldmine of data, be it guest preferences, booking behaviors, demand patterns, revenue trends, or operational insights. Theoretically, this data should be a game-changer for driving revenue and enhancing customer experiences. Yet, turning this data into real business impact is challenging because having data is not the same as using it effectively.
Here are three key reasons why the hospitality industry fails to generate a return from data and how to fix them:
1.Data is collected, but not connected
Most hospitality businesses have fragmented data spread across CRMs, PMSs, booking engines, and marketing platforms. Some teams start by gathering data in one place, but that alone isn’t enough – it needs to be structured, linked, and contextualized to be useful. A unified view of the customer means better personalization, smarter pricing, and higher direct bookings.
2. Data exists, but it doesn´t drive action
Dashboards and reports often exist (sometimes lots of them!), but who uses them, and how? Data should empower teams to take action, and for that, focusing on select data points can deliver higher returns than trying to cover too much at once. Whether it’s automated pricing adjustments based on demand trends or personalized offers triggered by guest behavior, the goal is to turn insights into revenue-driving decisions.
3. Success isn´t measured correctly
Too many organizations measure data success by how much they collect rather than how much business impact it creates. Instead of counting reports and dashboards, measure business outcomes such as guest retention, increased revenue per booking, reduced cancellations, and better upsell conversion rates.
Turning data into success
Data isn’t an asset just because you have it. It’s an asset when structured, actionable, and tied to measurable business outcomes. For example:
If your data isn’t helping you predict demand, it’sjust a historical record.
If it isn’t personalizing guest experiences,it’s just another database.
If it isn’t automating smarter decisions, it’s just adding complexity.
To truly monetize data, businesses need to shift their mindset: from collecting to connecting, from insights to action, and from reporting to revenue impact.
Hotels that take the right approach, use the right technology, and have the right tools to leverage data effectively will unlock higher margins, stronger customer loyalty, and a significant competitive advantage.
