Future demand data gives you insights into your source market to see how demand develops.
NB: This is an article from eZee Absolute
Simply put, it enables you to predict how many guests will stay in each room during a given period. This future forecast can come from surveys, customer preferences, marketing research, or other sources. Now, it might not seem that amazing yet just by thinking about how hotels can use future demand data.
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But once you get to know more about it and learn about its use cases, you’ll understand how it is going to make a difference.
And this brings me to the next point.
How is This Data Relevant to the Hotels?
Hotels need data to improve their services, any day. And future demand data can be an efficient fuel.
The goal of this type of data is to help hotel managers predict what guests will want from hotels in the future. And with the right set of data, they can develop goals and strategies that are tailored to meet those needs.
“A hotel that leverages future demand data become better at strategic planning for years into the future, rather than just a few months out”
This is a big deal, especially in an industry that can be so reactive to what’s happening on the ground.
For example, recently there has been a shift towards more health-conscious and vegan guests who are looking for hotels with lower environmental impact, no animal cruelty, and less waste.
So, hotel managers would benefit greatly from incorporating future demand data into their planning process to accommodate these changes while still providing top quality service to their guests.
The Bigger Deal
What makes future demand data more intriguing is how it turns revenue management into the most powerful weapon in the arsenal.
Revenue management is all about leveraging data and setting the right price for the rooms. Now, what if you could already predict your hotel’s demand (demand forecasting, for instance) and set prices accordingly? You’ll be leading the race.
And this brings us to the primary topic of the article.
How Future Demand Data Can Fuel a Hotel’s Revenue Management Efforts?
Future demand data is a goldmine for hotel businesses and their revenue management experts. After all, the benefits are so stunning.
1. Offer insights from the local market
Being a part of the hospitality industry for such a long time, I have seen hotels not betting big on the local market. Maybe they have their strategies in place, but I still believe that they must go out of their way to tap into the local market.
The opportunities and money are significant in this space. Moreover, it is one of those markets that can revive you when your business declines.
The covid pandemic must have proved this point already.
Now, forward-looking demand data empowers your hotel with insights from the local market. And what are these insights?
You get to know what is trending and going to spike in your destination.
Maybe you have performed a compset analysis or an analysis specifically to look for future trends. And then, you found that workation is going to be the next big thing in your locality. Additionally, you also identified the price point people are willing to pay. This is when revenue managers come into the picture and build a pricing strategy that is aligned with the preferences of your local market.
Brownie point for marketers: You can carry out geo-targeted ads and promotions for your local market to gain better traction and gather data.