Travel & Hospitality Tech Outlook | Thursday, September 12, 2024
Data analytics empowers the hospitality industry by optimising guest experiences, pricing, and operations. It drives competitiveness, enhanced satisfaction and profitability through informed, data-driven decision-making.
FREMONT CA: In the hospitality industry, guest services are the primary focus, with operational departments constituting most of the workforce. Non-operational staff typically account for only 10-15 per cent of the total employees, with about half of these roles dedicated to sales. For instance, in a hotel with 150 rooms, each department might have only one or two non-operational staff members. With an annual occupancy rate of 50-60 per cent and fluctuating seasonal demand, there often needs to be dedicated personnel to analyse, develop, or correct operational data, resulting in persistent issues that may go unnoticed. This negatively affects hotel performance, usually leading to management changes and perpetuating a problem identification and resolution cycle.
Furthermore, maintaining a fully staffed team is a challenge. Only about 80 per cent of positions are typically filled due to staff shortages, illnesses, or vacations. Employees across all departments experience burnout from their core responsibilities while also being tasked with generating reports and conducting analyses. In such cases, the responsibility falls to the finance department, which is already burdened with tax reporting, month-end closings, forecasting, and budgeting. As a result, more than one is needed to address this critical operational gap.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Distinguishing Between Internal Auditors and Data Analysts
Experienced hoteliers may argue that internal or income auditors could fulfil this role. However, internal auditors often need more specialised expertise for hotel data analytics. Their focus is primarily on financial and accounting reports, identifying system errors, and ensuring compliance with internal procedures, typically relying on basic Excel skills.
In contrast, a data analyst with programming proficiency can perform these tasks more efficiently by developing advanced reports, automating processes, identifying and resolving errors, and enhancing analytics to meet specific needs. Critical skills for a data analyst include SQL, R/Python/Julia, PowerShell (basic), advanced Excel with Power Query, and a foundational understanding of hotel application data exchanges.
Thus, the role extends beyond that of an assistant to finance or accounting management; it is a critical link between finance/accounting and IT. This individual connects the hotel's performance metrics with internal issues, which can only be uncovered by analysing data from various systems. For instance, a data analyst can discern patterns in F&B sales based on guest demographics such as age, nationality, or gender. They can also collect and analyse guest feedback from multiple review platforms without needing external services. These capabilities apply to small hotels and large resorts, enabling the creation of complex analytical reports that dynamically display key performance indicators, thereby supporting data-driven decision-making. This professional is responsible for compiling, collecting, verifying the accuracy of information, and presenting it in a format that allows management to focus on analysis and decision-making without the need to handle raw data themselves.
The Role of a Data Analyst in Established and Newly Opened Hotels
Typically, hotel staff directly involved in the opening process are hired approximately six months before the official launch. This timeline does not apply to critical departments such as General Management, Finance/Accounting, IT, and Sales, which are engaged much earlier. The optimal time to onboard a data analyst is around two to three months before the opening. By this stage, the systems the data analyst will work closely with are installed and configured. During this critical period, it is essential to begin preparing reports, determining their formats, and ensuring familiarity with all operational procedures.
Within this two- to three-month window, the report templates utilised from day one are developed and finalised. Following this schedule allows the analyst to immediately identify and correct operational staff errors once the hotel opens, ensuring that oversight and accuracy are established from the outset.
During this period, the focus is predominantly on resolving immediate operational issues, leaving little time for data analysis. Consequently, analytics is deprioritised, and reporting is often rushed. It needs more in-depth insights and offers only a superficial understanding of operations. This can lead to unreliable data, which may persist until the first budget review. By this time, accumulated errors can significantly distort the budget, rendering it misaligned with the actual financial situation.
A data analyst's role is crucial for newly established and long-standing hotels. The complexities of hotel operations, from the pre-opening stages to ongoing management, demand precise and reliable data for informed decision-making. With a dedicated data analyst, hotels can avoid falling into cycles of inefficiency and errors that can adversely affect both financial performance and operational efficiency.
By employing a data analyst, hotels ensure that all departments receive the necessary support to manage the extensive responsibilities of launching and maintaining a property. This professional identifies and addresses issues swiftly and provides valuable insights that enhance decision-making processes. In today’s highly competitive hospitality industry, the ability to analyse data accurately and efficiently is essential rather than optional.
Embracing data analytics enables hotels to streamline operations, elevate guest experiences, and achieve tremendous success. Integrating a skilled data analyst into the team should be a top priority for any hotel aiming to maintain a competitive edge in the hospitality landscape.
More in News