Importance and issues in hotel business intelligence
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.
What is 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 extract insights to provide reliable, actionable knowledge from a pool of available data.
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 enhance the strategy and performance of an organization. Although you might think that this is just common sense because you wouldn’t easily make better choices until you have your analysis?
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.
Problems of business intelligence in hotels
With support from Market Intelligence, you can consider the historical travel and spending patterns of your consumers, travel agents, and groups. This is how many hotels continue to sustain high rates of occupancy even in low booking times.
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.
Segmenting customers
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.
Reservations research by hotel business intelligence
The occupancy rate is one of the main metrics for hospitality, which shows what percentage of units are occupied during the time period.
Sourcing the PMS from past occupancy rates gives you the ability to evaluate what variables have driven it in the past and make predictions 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.
Optimizing Prices & Forecasting
There are two other fields where hotels can get the most out of company information too. Two main fields are price optimization and forecasting.
And in determining the price of room nights, there is typically major uncertainty and fluctuations.
Many products these days generate market information on room rates from competitors. So, by integrating data gathered in the same region at myriad data points.
Reassurance of Guest
Hotels should have the best facilities and items, analyze data, to please their guests. Market intelligence is used in up-selling by hotels.
Therefore in deciding which service can be targeted to a certain guest profile for maximum conversion, which would increase revenues.
Conclusion
Enabled by business intelligence, hoteliers will move away from the consumer’s perceived demand and concentrate on more reliable market analysis.
The value of using business intelligence to maximize productivity and income is now understand by most hotels.
Moreover 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.
In case of any query, issue, or requirement please feel free to raise it on QloApps Forum