In recent years, we have seen more industries adopt data analytics as they realize how important it is. Even the hospitality industry is not left behind in this.

This is because the hospitality industry is data-rich and it can play a vital role in sustaining and finding a competitive advantage with the effective utilization of their data asset. With the changes taking place in the hospitality industry, data analysis can help you gain meaningful insights that can redefine the way hotels conduct business.

Below are some of the ways through which data analytics in the hospitality industry can help driving their business strategies.

1.      Improving revenue management

Data analytics help hoteliers to develop a strategy for managing revenue by using the data gathered from various sources and even from the internet. Thorough analysis can make predictions and forecasting possible viz.

1. Demand expectation.
2. Best price value ratio for guests.
3. How competitive the property is in comparison to its compset.
4. Market to the right segment.

Different kinds of data can be beneficial in improving revenue management, such as current bookings, past occupancy levels, and other key performance statistics.

2.      Improvisation of services and guest experience

Reputation management is very key in hospitality industry, which in turn as an automated marketing tool. According to a study, nearly 50% of customers’ demands a minimum 4 star rating before they make their decision. Hence the customer feedback is something which cannot be left aside, a detailed analysis is required in every aspects of customer feedback. Identify the improvement areas, comparative study are essential to be in the customer favourite list.

3.      Improve the effectiveness of marketing

By knowing exactly what to advertise to potential clients, the hotel sector may develop and improve the effectiveness of its marketing with the use of good data analysis.

This enables marketers to create more distinctive categories that could help them discover important consumer groups. Also, they can market to a specific demographic to beat the competition through target marketing.

4.      Assessing the business environment and competition

Data analytics is the best way to keep an eye out for the competition. Competitor rates can be determined using real time data analytics and can help to fine tune the hotel’s current price strategy. Determining the right price for each room using competitive pricing that operated 24/7, can result in increased hotel booking.

5.      Providing additional services

Analysing the feedback surveys from individuals, can lead to an eye opener .It will show a great deal about not just programs that guests use, but also the services that they avail. This information can help decide on implementing new products & services viz. Gym, Salon & Spa, pubs, tie ups with taxi services & travel agencies.

What kinds of data analysis reports does your hotel require?

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Finlytyx develops tailor made analytics using the power and capability of industry accepted Business Intelligence platforms like Microsoft Power BI , where you can  Reduce the added cost, complexity, and security risks of multiple solutions with an analytics platform that scales from individuals to the organisation as a whole.

Finlytyx helps you identify your business needs.

1.      Identification of guests

This method of determining the target audience takes into account a number of factors, including age, family history, income, hobbies, and prior purchases.

The hotel sector can both attract new consumers and better satisfy its current clients by tailoring services to their individual needs.

2.       Report on transactions

You could learn more about what works best for your hotel by analysing your daily transactions. You could look for patterns and determine which days are more productive than others. Payment methods that are more popular in your hotel can be included. Here are some things to think about when creating the transaction report:

• The total number of check-ins & check-outs
• The number of unpaid check-outs
• The number partner / channel booking
• Average trend of occupied and unoccupied rooms
• Trend towards discount pricing
• Preferred mode of payment

3.      Forecasting

Using customer data and regular reporting, every corporation creates a sales forecast for strategic planning. Predictive analytics of this type have proven to be useful tools in the data arsenal.

Forecasting is used to predict future demand for products and services, as well as future sales. It also helps businesses run more efficiently by managing money.

Revenue management is the use of analytics to forecast consumer behaviour, improve inventory, and product availability. The goal is to provide good products to customers at the right time.

4.      Report on statistics

Small hotel businesses must be able to measure specific indicators that show how well the business is performing.

The following are the critical factors to consider for analysis:

• The total number of nights spent (Closed, occupied, and vacant rooms)
• Cancelled reservations
• The average occupancy
• Length of stay
• Lead time
• Revenue per booking
• Daily pricing

Conclusion:

Hoteliers have recently realised that using data analytics to implement Business Intelligence (BI) can improve their services, improve marketing strategies, and even increase revenue.

It can also be used to find viewpoints that support key business choices. With data, you may discover the crucial solutions that will help you develop new products, make better decisions, improve your services, and cut costs.

For the hotel sector to become more productive, efficient, and profitable, data analytics are crucial. The results of data analysis help a firm know where to improve, whether operations need to be improved, which tasks may be done more efficiently, and more.

We as Finlytyx help our customers identify opportunities by leveraging their internal and external data. We leverage emerging technologies such as Power BI, Qlik, Tableau in data and analytics space to maximise the business impact while engaging us for the data analytics services. An interactive dashboard which consolidates the KPIs covering key aspects of their business will make the senior executives’ life easy, more over it proactively take their attentions to the critical business elements which can be a business value, or an eye opener to a serious operational risk. We see a large trend in moving towards Power BI for executive dashboard and data analytics developments, this is due to the cost effectiveness, easy to deploy, free of cost cloud adoption and mobile access features etc.

Connect with Finlytyx for a detailed business case study; we have built industry specific analytics & dashboard that can be easily accommodated to meet your business purpose.

Author

Madhu M.Nair
Head of Service Delivery – Finlytyx AI Labs Pvt Ltd