APPLICATION OF DATA MINING TOOLS TO HOTEL DATA MART ON THE INTRANET FOR DATABASE MARKETING

Data mining, which is also referred to as knowledge discovery in datab ases, is the process of extracting valid, previously unknown, comprehe nsible and actionable information from large databases and using it to make crucial business decisions. in this paper, we present the data m ining process from data extraction to knowledge interpretation and dat a mining tasks, and corresponding algorithms. Before applying data min ing techniques to a real-world application, we build a data mart on th e enterprise Intranet. RFM (recency, frequency, and monetary) data ext racted from the data mart are used extensively for our analysis. We th en propose a new marketing strategy that fully utilizes the knowledge resulting from data mining. (C) 1998 Elsevier Science Ltd. All rights reserved.