Using guest data without breaking GDPR rules

Customer data underpins hotel marketing, and GDPR does not forbid it. Here is how to collect and use it safely.

GDPR brought the potential for big fines, so it is no surprise that hoteliers are wary of collecting and using customer data. Yet customer data provides the insights your business runs on, and it is possible to collect and use it in your hotel legally and safely. You just need to know how.

Why hotels collect guest data

Collected, analysed and used in the right way, guest data lets hoteliers:

• Create a better, more tailored service and experience

• Identify strengths and weaknesses, and discover what customers love and hate

• Manage seasonal supply and demand and improve occupancy rates

• Stay ahead of competitors

• Retarget sales

• Understand customer needs, such as check-in requirements or facilities

• Generate personalised offers and marketing based on time and location

• Segment customers so different groups get different messages

• React quickly with cross-sales and last-minute promotions

In short, the right data is the key to successful marketing, and successful marketing drives growth. You need to know and understand your guests, and customer data is what makes that possible. Wi-Fi analytics is one of the easiest places to start.

The customer data worth collecting

Not all data is created equal. Some of it matters more to you than the rest. The most useful information about hotel customers includes:

• Contact details: an email address or mobile number, so you can send a promotional message during a stay or keep guests updated with your newsletter

• Demographics: whether guests are parents, or their age, so the information you send is relevant to their stay

• Reason for stay: business or pleasure, so you can tailor the experience, like leaving an anniversary gift

• Social media connections: where they leave reviews, or whether they like your hotel's Facebook page, so you can meet customers where they already spend time

• Booking history: when guests return and how often. A guest who stays every two months for business does not need an offer to come back, but personalised service keeps them regular

• Booking preferences: how they booked, so you can market through the right channels

• Guest preferences: more pillows or extra towels, so you can keep guests satisfied

• Services and facilities used: the business centre or the spa, so you can offer relevant incentives and cross-sales

• Loyalty programme use: where the money is spent and how guests like to be rewarded

How hotels can collect guest data

Hotels are no strangers to collecting data. With the right customer relationship management (CRM) tools, it is simply part of what you do. In many countries, hotels must also record guest ID details for the authorities.

The data discussed here is different. This is data you want, for your benefit, so you can understand your guests. And with collecting data comes risk. For that reason, follow two basic rules:

1. Only collect data if you actually intend to use it.

2. Only collect data when you have appropriate security measures in place.

That sounds simple, but without the right technological tools it can quickly become a minefield. You need to know and remember everything from being transparent with your guests to handling data subject access requests.

The simplest solution

By far the easiest way to navigate the collection and use of guest data is to choose hotel-specific tools and software that handle data protection legalities, safety and ethics for you. You benefit from customer data while staying legal and safe.

When choosing a vendor, always ask about the built-in data protection elements.

Stampede guest Wi-Fi collects data in a GDPR compliant way, and it is up to your customers whether they stay connected with you. With that data you can personalise the guest experience, send timely and targeted offers, and understand what guests actually do in your venue. To see it working, book a demo.