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The Data Silo Dilemma: Why Disconnected Systems Are Failing Hotel Personalization

  • Alba Navarro
  • 18 November 2024
  • 4 minute read
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This article was written by SHR blog. Click here to read the original article

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The world is hyper-connected these days, and hotels are increasingly under pressure to deliver personalized guest experiences. From recognizing and rewarding returning guests to anticipating their needs based on previous stays, personalization has become a powerful tool in driving guest loyalty and revenue opportunities. Yet many hotels are failing to deliver on these promises, and one of the biggest culprits is the fragmented nature of their technology stack.

At the heart of this issue is the problem of data silos. A data silo occurs when information is trapped within one system and not shared or integrated across other systems. In hospitality, data silos often arise from fragmented tech stacks, where multiple platforms — like the Central Reservation System (CRS), Property Management System (PMS), and Customer Relationship Management (CRM) tools — operate independently and struggle to communicate. The disconnect between these systems creates gaps in the guest experience and significantly hampers personalization efforts.

Historically, hotels have relied on a variety of systems from different vendors to manage the complexities of their operations. CRS for reservations, PMS for managing on-property operations, CRM for guest communications — each serves its purpose, but when they don’t work together seamlessly, hoteliers are left with a fractured view of their guests. This can manifest in poor data sharing between systems, creating delays or inaccuracies in guest profiles, preferences, and booking histories.

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APIs (Application Programming Interfaces) are often seen as the solution to connect disparate systems, allowing for data flow between them. And when done right, APIs can indeed be powerful tools for integration. However, not all APIs are created equal. The quality, security, and comprehensiveness of an API are critical factors that determine how well systems can work together. Robust APIs that are well-documented and properly maintained can offer seamless data transfer, real-time updates, and reliable performance. On the other hand, less mature or poorly managed APIs may fall short, leading to data mapping inconsistencies, one-way data flows, or delays in updating guest information.

One of the biggest challenges with API-based integrations is ensuring real-time responsiveness. Some APIs, especially those that rely on batch processing, can introduce delays in updating guest profiles across systems. This means that critical information, like a guest’s room preference or loyalty status, might not be updated by the time they check in, leading to missed opportunities for personalization. Additionally, inconsistent data mapping between systems can result in errors or incomplete guest profiles, further complicating the guest experience.

Imagine a guest books a stay through your CRS. This booking includes critical information — room preferences, loyalty status, and stay history. If the API connecting your CRS to your CRM or PMS isn’t robust or doesn’t function in real-time, your front desk might not recognize a VIP guest upon check-in. The result is missed opportunities for offering personalized room upgrades, tailored amenities, or loyalty perks.

The same disconnect happens post-booking. If systems don’t communicate efficiently, guests might not receive timely pre-stay emails with relevant information, or post-stay offers designed to encourage repeat bookings. Worse still, if marketing systems aren’t properly integrated with CRM and PMS data, personalized offers or promotions may not even reach the intended guests at the right moment, reducing their effectiveness.

While APIs can be incredibly powerful when done right, native integration between systems offers an even higher level of seamlessness. Native integration, where key systems like CRS, PMS, and CRM are built to work together from the outset, removes many of the challenges associated with patching systems together via APIs. Native systems are designed to share data in real-time, ensuring immediate updates across all platforms and eliminating many of the risks that come with API-based integration.

With native integration, guest profiles are instantly updated across all systems when a booking is made, modified, or canceled. Preferences from past stays are automatically applied, and loyalty status is accurately reflected in real time. This means front desk staff can greet returning guests by name and offer them their preferred room without delay. The restaurant can prepare a guest’s favorite meal, or the spa can recommend treatments based on previous preferences. This kind of seamless, proactive service is what builds guest loyalty and drives repeat bookings.

Native integration also has significant benefits on the back-end. Hotel management gains access to comprehensive, real-time reports that offer deep insights into guest behavior, booking patterns, and revenue opportunities. Rather than piecing together data from multiple sources, these insights are generated from a unified tech ecosystem, allowing for more informed decision-making and better-targeted marketing campaigns.

It’s important to acknowledge that APIs have their place — particularly for connecting niche systems that don’t need full integration. They allow hoteliers to customize their tech stack off the shelf by integrating solutions like guest experience platforms, review management tools, and more. For core components though — such as the CRS, PMS, and CRM — it’s vital to ensure that the APIs are robust, well-documented, and capable of handling real-time data. In most cases, a hybrid approach is the best solution.

To identify the most robust APIs, start by reviewing the vendor’s API documentation — clear, detailed guides are essential for understanding how the API works and integrates with other systems. Additionally, strong developer support, whether through a support team or community, is crucial for troubleshooting and customizations.

Scalability is also important to consider. As data demands grow, the API must handle increased traffic, especially during peak seasons. Security should never be overlooked either. Robust APIs must include encryption and compliance with privacy standards like GDPR to protect guest data. Finally, test the API before committing — requesting a demo or pilot phase lets you assess its performance and ensure it meets your operational needs.

By investing in the right mix of technologies, hoteliers can unlock the full potential of guest data, deliver real-time personalization, and ultimately enhance the guest experience, driving both satisfaction and long-term profitability. The future of hospitality is seamless, and it begins with smart, thoughtful integration choices.

Please click here to access the full original article.

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