The hospitality industry is becoming increasingly competitive on a daily basis. Senior Management of hotels look for tools that will help them gain some form of competitive advantage over their rivals. Hotels can no longer ignore the importance of data analytics to achieve the aforementioned competitive advantage. At Revnomix Solutions, we believe that Revenue Management and Data Analytics have a symbiotic relationship. Effective utilisation and implementation of Data Analytics in strategy making will result in consistent and continuous growth in occupancy and revenues for the hotels. Some of the areas where data analytics impacts Revenue Management are:
- Pricing Decisions – Pricing is one of the most important factors that determine whether a room is sold and if the hotel can generate a profit from that sale. Under-price a room and the hotel might lose revenue and over-price a room and the room might go unsold. With data analytics, revenue managers can look at past patterns, compare the existing pricing patterns of competitors and arrive at an ideal room price for each category in the hotel. It will also enable the hotel to react to fluctuations in demand in a timely manner.
- Channel Management – Channel Management is a vital aspect of revenue management. With data analytics, a hotel can identify which channel is performing well, the region where the bookings are coming from, the prices at which a particular room category is sold on different channels, the booking pace of each channel, seasonality of bookings, etc. Analysing the aforementioned information will help determine the marketing efforts on each channel, how to derive maximum profitability from each channel and whether it is beneficial for the hotel to be on a particular channel.
- Booking Patterns – Data Analytics will help identify the booking patterns for each room category in the hotel. These patterns will involve understanding demand for each room type based on region, time of the year, market segment and pricing. This helps with forecasting occupancy and designing pricing strategies.
- Data Segregation / Data Filtering – A hotel generates a large amount of data on a daily basis. However not all the data generated needs to be analysed. For data analytics and visualisation to be effective, the right data has to be processed. Implementing the right practices will help the hotel to improve their data collection techniques. This, in turn, will allow the revenue management team to provide reports on a timely basis and assist with accurate decision making.
Besides the above mentioned areas, data analytics also plays an important role in marketing, customer relationship management and effective utilisation of loyalty programs. Revnomix Hotel Data Analytics and Visualisation services have helped our clients grow over the years. Contact us at firstname.lastname@example.org to know how the Revnomix team can improve your hotel’s performance.