Hotel Chain Uses Big Data to Increase Bookings
The average flight cancellation due to bad weather is about 1%-3% of total daily flights. This is equivalent to 150 to 500 cancelled flights or around 25,000 to 90,000 stranded passengers every day. These stranded passengers need a place to stay overnight.
Red Roof Inn recognised the need to target these stranded passengers to offer overnight hotel accommodation. It also recognised that many travelers use smartphones to look for emergency accommodations. Therefore, Red Roof Inn implemented its Big Data strategy by sourcing to free public information - weather and flight cancellation, and organised information about airport and hotel locations, and then built an algorithm that factored in weather severity, travel conditions, flight cancellation rates, time of day, and other variables, and combined with using geo-based mobile marketing campaigns to send targeted advertisements to smartphones of stranded passengers about a nearby Red Roof Inn.
The payback from Big Data is convincing, as Red Roof Inn subsequently enjoyed a 10% bookings increase from 2013 to 2014.
Pizza Chain Makes More Sales in Time of Power Outage
Using the same methodology of Red Roof Inn, a pizza chain uses a mobile app and mobile marketing campaigns to deliver discount coupons to area experiencing power outage leaving residents unable to cook. This is made possible with power suppliers often announce power outage on their website, combined with other consumer-related data. This mobile and location-based marketing campaigns achieves a 20% response rate.