Business Intelligence will assist hotel operators to make the operation smarter. Hoteliers will be able to take decisions quickly.
There’s data everywhere. Our computers, our phones, the cloud, and practically all of that. Hence every type of device or program that records data. Let’s just say a lot of data is out there.
Once you’ve got all your info, what’s the next step?
Here we are talking about the data systems and their importance to the hospitality industry.
But there is still one significant key element that is critical to obtaining all the benefits of the ability to analyze and foresee a data platform, that resides in business intelligence.
Business Intelligence (BI) is a “procedural and technological infrastructure that gathers, stores and analyzes data created by the activities of an organization.
Business intelligence is intended to take into account all the data produced by a business. It, therefore, facilitates simple performance metrics and patterns that will guide decision-making.
Each organization has efficient payment systems that store all the data gathered from day-to-day processes in databases.
To stay competitive, companies need to recapture and use the knowledge they possess, and that’s where BI comes into the picture.
With business intelligence, we can derive insights from a pool of available data to deliver precise, actionable.
And nearly real-time inputs for decision making Business intelligence is meant to take in all the data generated by a business.
Therefore it presents easy-to-digest performance measures and trends that will inform management decisions.
Essentially, it is the act of making data-driven decisions based on data analysis
And data visualization in order to better a business’s strategy and success. While you might think this is simply common sense because once you have your analysis, wouldn’t you easily make better decisions?
Business intelligence isn’t as easy as it sounds. For instance, there are a lot of tools, processes, and factors that allow you to grow in your business.
Your data analytics become data-driven decisions. Business intelligence, in hospitality businesses, can translate data into readable analytics.
Moreover, it supports the management team in the decision-making processes. So all over it boosts sale and increase revenue.
In fact, many companies in this sector have been using BI to not only increase sales but also improve ADR’s and make use of special offers to fill low periods and attract groups and mice business.
With help from Business Intelligence, you can understand your clients, travel agents, and groups’ historic travel and spending trends.
This how many hotels manage to keep high occupancy rates even in low booking periods.
They offer great deals to deliver a stellar experience at the right moment.
Given the abundance of available data sources and types of information, modern BI systems suggest a fairly holistic view of hotel activities and metrics. Let’s have a closer look at the main ones, but keep in mind that this list is nowhere near exhaustive.
Hospitality strives for an exclusive and unique approach to each individual customer.
Guests can be segmented by demography, geography, behavior, etc.
All of this data comes from bookings made on the website, purchases through POS systems, CRMs, or any other place where personal preferences are shown.
As a practical use case, customer segmentation will help you consider personalized offers or tap into new opportunities in customer experience.
The occupancy rate is one of the main metrics for hospitality, which shows what percentage of units are occupied during the time period.
Sourcing past occupancy rates from your PMS gives you an ability to analyze what factors affected it in the past and make forecasts for the future.
For example, you can compare annual data to analyze what impacts the occupancy. whether these are seasonal changes, events, changes in the competitor’s market, or your own pricing/marketing strategies.
That’s why, you can figure out which tendencies are occurring regularly, and how you can respond to them to optimize your revenue.
Revenue management is a complex discipline that considers hundreds of factors to predict optimal pricing and generate target revenue.
So revenue management operates several KPIs like average daily rate (ADR) or revenue per available room (RevPar). And also the total revenue per available room (RevPAR) is a KPI.
These are two other areas where hotels can again gain maximum out of business intelligence. Price optimization and forecasting are two major areas.
Because there is usually massive volatility and fluctuations in deciding the price of room nights.
Many products today generate business intelligence on room rates of competitors. So in the same area by integrating information collected at myriad data points.
Hotels can deliver the best services and goods, analysis of data, to keep their guests satisfied.
Business intelligence is using by hotels in upselling.
Therefore in deciding which service can be targeted to a certain guest profile for maximum conversion, which would increase revenues.
Hoteliers, empowered with business intelligence, can step away from perceived demand from the consumer and focus on more precise market research.
The value of using business intelligence to maximize productivity and income is now being understood by most hotels.
Decisions making process can be faster by hotel business intelligence.
If you want to learn about the functionality of QloApps then you can visit this link: QLO Reservation System – Free Open-Source Hotel Booking & Reservation System.
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