In an ever-changing technological landscape, it can be challenging for hoteliers to keep up with the latest software advances. Overall, Analytical data can improve hotel revenue performance.
How these can impact key workflows within a property and its overall financial performance. There are many commercial revenue management systems (RMS) available today.
Although there are a growing number of new and exciting developments in Revenue Management analytics, there are many problems that remain unsolved.
At the center of any good revenue management solution is its core analytical capabilities.
Which business factors are considered for great forecasting, optimal pricing, and overall business optimization?
Which are not? These inputs directly contribute to the value a solution can bring, and also directly influence the degree.
The key outputs designed to grow revenue and enhance profitability are reliable and acceptable to the users.
In this post, we aim to bring insights into some of the key advanced analytical capabilities that bring benefits in an RMS solution with a particular focus on the hospitality industry.
Increase your hotel demand forecasting
Revenue management systems have traditionally used a limited number of forecasting models at a level defined manually by users.
High-performance forecasting, on the other hand, relies on hundreds of advanced forecasting models.
Where the most appropriate model is selected by the system automatically.
Then the forecast model parameters are calibrated to understand the impact of the specific price sensitivities, no-shows, cancellations, booking curves, etc. within the forecasting group.
Analytics can be employed to solve a variety of challenges, including adapting the forecasts to demand shifts and understanding demand as a function of price ).
Why does this matter? Let’s say we’re trying to price our rooms for certain length-of-stay patterns that show similar behavior. It may be better to estimate them together because we can combine their data and build a more robust basis for forecasting.
Conversely, if we’re trying to estimate price elasticity, it may not be a good idea to pool room types from distinct classes. Because a deluxe and a standard may show different behavioral patterns in terms of willingness to pay.
Keep an eye on your expense data
This aspect is quite important when you plan to increase your hotel revenue. Unnecessary expenses that are not giving you the desired returns must be avoided.
For example – the energy bill constitutes a huge percentage of the entire operating budget of a hotel.
Use data to understand the average time guests are spending outside of the room or of your property while the HVAC is still running.
Now, you need to act on this immediately if there is a significant amount of power wastage.
Try to find out the impact of the power bill on RevPAR. This will enable you to save more on power bills which will ultimately result in enhanced profitability.
In short, leveraging hotel business data can help you to come up with an effective expense management plan to avoid revenue pilferage and leakage.
Know your occupancy forecast
It is highly essential to come up with an accurate occupancy forecast for your hotel. And to achieve this important factor.
You have to rely on data, data, and only data. You must analyze a set of critical data coming from search engine queries.
This process will help you understand the number of expected arrivals from all the sources.
And when you have such valuable insights. Don’t you think that you will be able to address negative issues like cancellations and no shows, etc. better?
If a particular room type will be in more demand during the projected forecast time.
To be precise, you can leverage data to produce accurate occupancy forecast that leads to improved sales and revenue.
Look at your guest data
Nothing works better than impeccable guest service and top-notch guest relationships in the guest-facing hotel industry.
If your guests are happy about your property and its service, they will make your business grow.
They become your brand ambassadors and loyal customers, thus giving you repeat business.
But, is it so easy? Will you be able to serve them without knowing them? Will you be able to personalize their experience without understanding their likes and dislikes?
The answer is a big ‘No!’.
But then what is the solution? Well, it is your guest’s data.
Look at the pile of guest data you have, it will definitely help you understand them.
Once you know their expectations and preferences like choice of room, favorite cuisine, buying powers, etc.
you will be in a better position to make their next stay a ‘special’ one. Enhanced guest service can also help you sell more non-room items as happy guests tend to spend more.
This apart, use the same guest data to pitch your brand through targeted emails.
For example – after some deep-diving into your guest data you realise that certain guests of yours attended an annual festival/event in your area last year.
During this time they stayed at your property in September. This presents a great opportunity for you to get back in touch with them via mail, in July, reminding you about the upcoming event.
Let them know that they can avail of a 20% discount on room booking if they book with you before the 1st week of August.
You must run timely promotions with personalized packages to attract more guests.
Chances of getting more bookings are higher with such activities, and more booking translates into increased revenues.
Conclusion
Data can really give an immense advantage to your hotel business.
However, are you one of those smart hoteliers who understand the importance of big data analytics when it comes to run your hotel business efficiently
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