Easier data analytics has tremendous potential in the hospitality industry, but are you taking advantage of it already? If not, you better think about it soon because your competitors are probably using advanced data processing programs to create better offers for their clients.
According to the report, the key benefits of implementing new technologies in the hospitality business include an increase in online revenue, reduction in guest complaints, and better customer service ratings.
If data analytics can generate such impressive results, the only real question is how to make use of it and help your business flourish in the years to come. In this post, we will explain to you how to boost your hospitality business with data analytics in no time.
How Does It Work?
The question most people ask us is: How can I deploy data analytics technology? The answer depends on their current data processing systems and abilities, but it all comes down to the next three steps:
- The evaluation phase: The first thing you need to do - in cooperation with your data analytics provider - is to evaluate the existing information management processes. Some hospitality businesses still rely on pen and paper to collect data, while others already use superior data management platforms. The time needed for the actual deployment mostly depends on the current state of affairs.
- The automation phase: Jake Gardner, an IT expert says that the second step is to choose the most suitable data processing platform: "You ought to find a pricing plan that fits your requirements and budget. After that, data analytics can be automated successfully."
- The execution phase: Finally, it is time to put your new machinery into work and enjoy the privilege of advanced data analytics. As soon as you begin using it, you are going to realize that data analytics represents an irreplaceable tool in modern business.
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7 Ways for Hospitality Managers to Take Advantage of Data Analytics
Setting up a brand new data analytics platform is relatively simple, but what can you expect from this tool once it becomes fully operational? There are so many benefits you can expect from it, so keep reading to see the seven major effects of data analytics.
Increase occupancy rates
What is the first and by far the most important objective of every company in the hospitality business? The answer is easy – the goal is to increase the occupancy rate. Data analytics makes it possible because the system takes into account and compares hundreds of information resources.
It will check your historical reports, compare annual results, check for possible events in the neighborhood, identify the busiest days of the week, and do a number of other calculations to give you suggestions on how to increase occupancy rate in real-time.
Understand customers' needs
If you know what your guests want, you can fulfill their needs and turn them into satisfied customers. It gives your staff the ability to personalize services because they know how to approach each guest individually.
For instance, data analytics can provide you with relevant information on visitors' daily habits and expectations, so you can adjust services based on various factors such as:
- Check-in and check-out times
- Average time spent in a room
- Favorite meals and beverages
- Traveling plans and details
- Extra services the guest may be searching for
Tailored marketing campaigns
Hotels trying to attract guests using generic marketing campaigns can hardly keep pace with the competition. In order to grow the business, you have to tailor marketing campaigns with data analytics. A study shows that over 90% of consumers are more likely to shop with brands that provide offers and recommendations that are relevant to them.
For instance, advanced data research can help you understand that your typical guest is a vegetarian, so you won't have to waste time and money promoting red meat dishes anymore. The example may be extremely simple, but it definitely proves the power of personalization in contemporary marketing.
Learn the pros and cons
According to the report, there are over 700 thousand hotels in the world today. The industry is highly competitive, which means that you have to be agile and proactive if you want to keep improving your business results.
Data analytics makes the job much easier because it takes thousands of variables into the calculation and quickly comes up with the pros and cons of your business. That way, you can react promptly by enhancing certain details or eliminating malfunctioning services.
Superior inventory management
Hotels are complex systems and most of them are struggling with inventory management. It's not a surprise given the fact that hotel managers need to optimize F&B requirements, room accessories, and many other products, tools, and gadgets. This is where data analytics comes in handy as it guarantees superior inventory management through extensive evaluations and reporting.
Tracking and reducing energy consumption
Although it's probably not the first thing that crosses your mind when you think about data analytics in hospitality, it still represents a major benefit of information processing.
Data tracking enables you to monitor energy consumption around the clock, so you can pinpoint common leaks and reduce overhead costs. Of course, it doesn't come at the expense of your guests because the system recognizes when they actually need and use energy-powered services.
Optimized staffing
Almost every hotel out there is trying to achieve a delicate balance between under- and over-staffing. Only the best actually succeed simply because they use data analytics for staffing optimization. With advanced data analytics tools at your disposal, you will rarely ever need to worry about the shortage or abundance of employees.
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The Bottom Line
Data analytics already proved to have a staggering impact on the hospitality business, so nothing should be stopping you from using advanced data processing systems. In this post, we showed you how data analytics functions and what can it do for your company. Are you ready to take advantage of it?