Travel & Hospitality Tech Outlook | Friday, November 26, 2021
Summary: Hotels can no longer afford to overlook the critical role of data analytics in achieving the aforementioned competitive advantage.
FREMONT, CA: Daily, the hotel sector becomes more competitive. Hotel executives are constantly on the lookout for solutions that will get a competitive edge over their competitors. Hotels can no longer afford to overlook the critical role of data analytics in achieving the aforementioned competitive advantage. Effective use and implementation of data analytics in strategy development will result in hotels seeing a steady and ongoing rise in occupancy and revenue. Several areas where data analytics has an impact on revenue management include the following:
Pricing Decisions: Pricing is critical in determining whether a room is sold and whether the hotel can profit from the sale. If hoteliers underprice a room, the hotel may lose money; if they overprice a room, the room may go unsold. Revenue managers can use data analytics to examine historical patterns, compare them to competitors' existing pricing patterns, and arrive at a reasonable room price for each hotel category. Additionally, it will enable the hotel to react quickly to swings in demand.
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Channel Management: A critical component of revenue management is channel management. A hotel can use data analytics to determine which channels perform best, the location from which bookings originate, the pricing at which a specific room type is sold on various channels, the booking pace of each channel, and the seasonality of bookings. Analyzing the aforementioned data will assist in determining marketing efforts on each channel, how to maximize profitability on each channel, and whether a particular channel is advantageous for the hotel.
Booking Patterns: Data analytics will assist in determining the booking patterns for each hotel room category. These patterns will require an awareness of the demand for each room type by region, season, market segment, and price point—this aids in forecasting occupancy and the development of pricing strategies.
Data Segregation/Data Filtering: Daily, a hotel creates a vast amount of data. However, not all data generated requires analysis. Effective data analytics and visualization require the processing of the correct data. By implementing the appropriate methods, the hotel will be able to enhance its data collection techniques. This enables the revenue management team to deliver information on a timely basis and aid in making appropriate decisions.
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