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Central Data Management (CDM) and Advanced Data Integration

The hospitality industry stands on the cusp of a digital revolution, with the potential to significantly transform conventional hotel hierarchies into dynamic, guest-centric systems. For decades, hotel management has been compartmentalized, operating in silos that hinder comprehensive data utilization. However, a shift towards a data-driven culture promises to redefine how hotels operate and engage with their guests. 

Traditionally, hotel IT decisions have been made in isolation, focused on solving immediate problems rather than developing integrated solutions. This fragmented approach has resulted in a patchwork of systems that fail to communicate effectively or leverage the vast amounts of data generated across various guest touchpoints. From the front desk to online bookings and customer feedback, each piece of data holds potential insights that are currently underutilized, yet so important for CRM. 
Recognizing this, industry leaders are advocating for a strategic overhaul of IT strategies. Rather than continuing to operate in vertical silos, there is a growing consensus on the need for a unified guest-oriented IT strategy similar to those adopted by digital giants like Amazon and Uber. The goal is to centralize data management, break down existing barriers, and enable a holistic view of the guest experience to ultimately enhance guest loyalty and boost revenues.

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Central to this transformation is the implementation of a Central Data Management System (CDM/CDP), which integrates data from all customer interaction points, including websites, booking engines, property management systems (PMS), point of sale (POS) systems, surveys, and customer relationship management (CRM) tools. This integration ensures that all relevant guest data is consolidated, providing a comprehensive dataset that can be effectively analyzed to enhance guest satisfaction, operational efficiency, CRM success and your loyalty programs.

However, merely collecting data is not sufficient. The quality of data plays a crucial role in its effectiveness, which is where Data Quality Management (DQM) comes into play. DQM ensures that data is accurate, complete, and timely, making it a reliable foundation for strategic decisions. This step is particularly challenging for international operations, where data standardization and cleansing become complex but essential tasks. 
Once a robust data infrastructure is in place, hotels can truly begin to realize the value of their data. Hiring data scientists then becomes a strategic move, transforming raw data into valuable insights that drive innovation and profitability. In this context, the analogy of data being the "new oil" is apt - like oil, data must be refined to extract its true value, turning it from mere information into a strategic asset that powers the entire organization. 
The journey towards a data-centric hotel industry is not a short one. It involves a significant shift in mindset and the decentralization of control from traditional verticals to a more integrated, data-focused approach. This change requires persistent effort and commitment but promises to position forward-thinking hotels at the forefront of the industry.

This article was part of’s latest viewpoint on ‘How Data Science Can Transform Conventional Hotel Hierarchies,’ in which our Founder & CEO, Dr. Michael Toedt, participates as an expert on a regular base. 

Central Data Management - Your Key to Success in Hotel CRM & Loyalty Programs

Stand at the Peak of Hotel Tech to Revolutionize Your Guest Satisfaction and Boost Revenue

"As the industry moves forward, it's clear that embracing data science is not just a technological upgrade but a strategic imperative that will define the future of hospitality. This transformation offers a beacon of hope for a more efficient, guest-oriented, and profitable future in hotel management."

Dr. Michael Toedt
CEO & Founder

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