How Data Analytics in The Hospitality Industry Can be Helpful? (6 Tips Inside)

In recent years, we have seen more industries adopt data analytics as they realize how important it is. Even the hotel industry is not left behind in this. 

This is because the hospitality industry is data-rich. And the key to maintaining a competitive advantage has come down to ‘how hotels manage and analyze this data’. 

With the changes taking place in the hospitality industry, data analysis can help you gain meaningful insights that can redefine the way hotels conduct business. 

Below are some of the ways through which data analytics in the hospitality industry can help hotels with business strategies.

Ways Data Analytics Can Help the Hotel Industry

The importance of data analytics in the hotel industry is necessary, since it serves millions of guests every day. Each of them has their own set of preferences, expectations, and needs for the journey.

But, how does it impact your hotel’s business? Let take a deeper dig at the use of data analytics in the hospitality industry.

1. Can assist in improving revenue management

Data analytics in the hospitality industry can help hoteliers to develop a strategy for managing revenue by using the data gathered from various sources like the information found on the internet. 

Through analysis of these data, they can make predictions that will help owners with forecasting. They would learn about: 

• Expectation in terms of demand for accommodation in the hotels
• The best price-value ratio for their guests 

Revenue management professionals are in search of opportunities for marketing services to the right buyer through an appropriate marketing channel at a fair price. 

Various measurements are monitored by experts for determining how competitive a property is, in comparison to its compset. 

Different kinds of data can be beneficial in improving revenue management, such as current bookings, past occupancy levels, and other key performance statistics.

2. Helps in improvisation of services and guest experience

By using hotel data analytics, you can get information like customers’ feedback about their services and experience at the hotel.

This information is readily available on platforms like social media, reviews made on magazines and hotel websites, or even notes left for the hotel. 

However, for reviews, you can also use a traditional survey method which is more detailed, and provides insight into factors that influence guests’ booking decisions. 

With this information, hotel owners and managers can know about their property’s strengths and weaknesses. Hoteliers can also improve their services and provide guests better experiences. 

By using data analytics for hotels, new perspectives can be generated in the hospitality industry. Hoteliers can discover new and better ways to leverage big data for attracting customers and increasing sales. 

3. Data analytics can improve the effectiveness of your marketing

With proper data analysis, the hotel industry can improvise and make its marketing more effective, by knowing exactly what to market to potential customers. 

This enables advertisers to build more unique segments that may assist in identifying key consumer groups who frequently visit hotels or other relevant locations. 

If a guest books the property for the whole family, then with the help of data analytics, one can market the family activities available in the hotel. 

If one usually comes for business, they will showcase activities related to business, which will effectively influence them to come to the hotel. Also, you can market to a specific demographic to beat your competition through target marketing.

4. Helps to scout the business environment and competition

To stay ahead in the industry, hotels must keep an eye out for the competition, and there is no better way of doing so than with the use of data analytics. 

Competitor rates can be determined using real-time data analytics that compares your hotel’s current pricing strategy to your compset. 

This assists in determining the right price for each room using competitive pricing that operates 24/7, resulting in increased hotel bookings. 

The data collected can help you figure out what others in the hotel industry are doing, and how to become better than them in terms of services and experience.

5. Aids in providing additional services 

Hotels communicate with existing and potential guests in a number of ways, allowing them to collect large amounts of data. When data is properly gathered and analyzed, it will show a great deal about not just the programs that guests use, but also the services that they avail. 

In addition to this, hotel owners are able to decide on new products and services to introduce. If guests often request gym equipment that the hotel is lacking, this can assist them to refurbish their gym. 

Data analytics can also help in making decisions about forming partnerships with other companies, such as taxi companies, pubs, restaurants, and travel agencies. 

The use of data analytics in the hotel industry is essential for increasing productivity, efficiency, and profitability. The outcomes of data analysis informs a business where they can optimize, whether operations need improvement, which activities can gain higher efficiency, and more. 

6. Can help in using social media platforms to your advantage

Social media platforms are the most powerful tools for engaging and connecting with the audience from all over the world. 

These media tools are important, especially if you want to have better communication with your guests and remain ahead of the competition. 

It’s feasible for guests to interact with the hotel in new ways because of social media. Nowadays, they are using it for requests, needs, opinions, or concerns. Whereas, hoteliers may use these platforms to offer useful information to their guests about their services. 

On the other hand, being active on social media also means that customers may use it to express their dissatisfaction over the services they received.

Types of data analysis reports your hotel needs

Effective analytics can aid in the development of intelligent marketing and logistics strategies, as well as the identification of target audience. This approach has shown to be quite significant in the hotel business. 

Guests’ sentiments  must be carefully monitored by hospitality services at all times. Here are some of the most important hotel reports to keep an eye on.

1. Identification of guests

For better and more successful service delivery and promotion, the hotel business must first identify and understand its guests. They are more likely to share a positive feedback for a hotel that tends to their needs and preferences. 

This technique of identifying target audience considers certain criteria, such as age, family background, income, hobbies, and previous purchases. 

The hotel industry can use this technology to serve current guests by personalizing services to their specific requirements, as well as target new customers.

2. Report on transactions

By analyzing your daily transactions, you could learn more about what works best for your hotel. You could observe a pattern and figure out which days are more productive and which are not.

You can include payment methods that are more preferred for your hotel. Here are some factors to be considered while creating the transaction report:

• The total number of check-ins
• The total number of check-outs
• The number of unpaid check-outs
• Occupied and unoccupied rooms on average
• Method of payment 

3. Forecasting

Every corporation develops a sales forecast for strategic planning, by using customer data, and conducting regular reporting. Such predictive analytics have proven to be useful tools in the data arsenal. 

Forecasting is used to estimate future demand for products and services, and further sales. It also assists businesses in operating more efficiently by managing money. 

The use of analytics to forecast consumer behavior, improve inventory, and product availability is known as revenue management. The objective is to provide good products to the consumers at the right time.

4. Report on statistics 

Small hotel businesses must be able to measure specific indicators that provide them with an insight into how well the business is performing. 

Here are the important factors that you need to consider for analysis:

• The total number of nights spent (Closed, occupied, and vacant rooms)
• Canceled reservations
• The average occupancy
• Length of stay
• Lead time
• Revenue per booking
• Daily pricing