Predictive Analysis in the Hospitality Industry can bring a great revolution. Predicting the future for a better business, what else you need.
Predictive Analysis is around for decades but it is finding its pinnacle these days. Almost every business is implementing it for better outcomes.
So basically we are using the data that we get from our customers to predict their behavior in the future.
If we want to use predictive analysis effectively, first we have to understand that its core concept. And to what extent we can implement in the hospitality industry.
Then we have to check the methods for the collection and sharing of data. And then the implementation of a predictive analytics system.
So the challenges that we have is to analyze the sources of data. Which of them are reliable and consistent and whether they can be used for the predictive analysis.
In this blog, I will try to give some benefits of predictive analysis. So that it can be justifiable that the efforts are worth and you should go for it.
Predictive Analysis is a collection of techniques from data mining, predictive modeling, and machine learning used to predict the outcomes of future events on the basis of patterns observed in the current or historical data.
Predictive Analysis finds its application business to a great extent. With its help, we can predict the risks in business decisions, expected sales and revenue and customer behavior.
Predictive Analysis uses past data of the customer to draw out his purchase behavior. With the help of this data, you will be able to predict his buying pattern and his other preferences.
When we say other preferences then we have to understand that the guest journey does not end at check-in. It actually starts there.
After the check-in, the guest’s stay in your hotel defines his behavior.
In a similar fashion, you can track all your guest’s data and design your hotel services accordingly.
Some services are to be general while some will be hyper-personal.
A perfect price of a room in a perticular season depends on many factors like future booking trends, occupancy rate expected and the number of tourists visiting your area.
Even the weather forecast has an impact on hotel occupancy.
So the employment of predictive analysis is very important in your price research. With the help of data, you will able to draw a conclusion that whether you have to hike your prices or decrease them. And to what extent.
Now, this is very important because the margins are very low for hotels. From the normal manual analysis, we get an idea of whether we should decrease or increase the price but that is very inaccurate and unreliable.
It is not only decreasing or increasing the price but hitting a perfect value. Even small differences in the prices can bring the final change to be of the magnitude of hundreds and thousands of dollars.
Customer churn is when an existing customer, user, player, subscriber or any kind of return client stops doing business or ends the relationship with a company.
In the hospitality industry also, customer loyalty is very important as gaining a new customer more expensive than retaining one.
And it becomes more important when the hotels are trying to gain more and more direct bookings against OTAs.
With predictive analysis, you can prevent this churn. The prevention will be to analyze why the guests ended his loyalty to your hotel.
And then you can take the measurements to prevent the customer churn.
Again when it comes to marketing the predictive analysis can tell us which channel will be most efficient and which audience segment will be suitable for which marketing method.
With predictive analysis, the lead generation from marketing efforts will be more concentrated in terms of readiness to purchase.
This will help in taking the next step in marketing or selling by predicting future booking habits
After it will also help in content marketing. The predictive analysis will help in deciding which type of content will be suitable for which type of audience.
In order to run a successful hotel business, it is very important to forecast the demand. With the predictive analysis, you will be able to analyze the sales curve and be prepared with the needed inventory.
Again the manual sales and order forecasting is very unreliable and laborious. With proper tools and data mining, you can predict what inventory will be required and meet the demand.
As it is said, “data is in new fuel”. We need to use this data to grow our business.
The hospitality industry is becoming more and more challenging each day. But as it is becoming challenging it is also providing more opportunities.
I hope I was able to bring the topic efficiently in front of you. Please let me know if you liked and your suggestions are most important and most welcomed.
Thanks for the read!!!