Advanced Revenue Management is all about following the people (guests) instead of the product (rooms).
It therefore involves the application of mathematical techniques to PMS and POS data in order to classify guests into behavioral groups that better predict their booking and spending patterns. The intelligence from this guest analytics often debunks many long-held beliefs and renders irrelevant many of the metrics by which hotels have been measured for decades.
Guest Analytics is the fuel that powers successful loyalty programs, marketing campaigns, experience management, and Total Revenue Management.
However, transitioning to Guest-Centered Revenue Management is not an easy task for most hotel companies because the process involves not only more advanced data science skills, but also the cooperation of departments that may not be used to working together.
Regardless of what type of hotel company you work for, here are the five hard steps you will have to take to get to more
Question everything you think you know. The hotel industry runs on guest classifications and performance measures inherited from a time when there was limited data and tracking the billing process was the priority.
Guest analytics helps you measure your world using measures that matter. “Transient” and “Leisure” become less significant and labels based on guest’s behavioral tendencies take the driver’s seat.
The dependence on Per Available Room (PAR) measures naturally diminish as you begin to measure your performance on Per Available Customer (PAC). This transformation will require hoteliers to accept having to re-learn the way they evaluate their business model and to discard time-honored, yet irrelevant performance indicators.
Your PMS and POS systems were designed to perform certain operational tasks efficiently and perhaps even offer you some traditional hotel reporting. These systems collect data to capture the “what” and never the “why”.