As data becomes more and more accessible in the hospitality industry, it is taking on an increasingly critical role in daily hotel operations.
NB: This is an article from Otelier
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From owners and operators to general managers and housekeeping directors, teams across the entire company are now relying on data to make more informed decisions.
And the types of data available are changing too. While historical data was once the only indicator for understanding performance, new forward-looking data sets and automated analysis of that data are paving new paths forward. We’ve moved beyond simple daily reports to systems that predict and prescribe actionable steps. As technology advances, the ability to interact with data in real time and receive actionable insights will become a standard expectation.
For hoteliers, the key is to embrace these tools and integrate them into daily operations. Nearly 75% of hoteliers report using some form of data analytics to drive decision-making processes, according to a recent Hospitality Technology study. Whether it’s forecasting demand, optimizing labor, or responding to unexpected changes, leveraging the right data at the right time can drive success and profitability.
Let’s explore the key “buckets” of data that matter to hoteliers on a daily basis and how leveraging them effectively can enhance operations and profitability.
The Foundation: Descriptive Data
For decades, descriptive data has been the cornerstone of hotel management. This type of data – often called historical data – gives us a quick glance at yesterday’s performance as well as a look back at similar time periods for comparison.
- Daily Revenue Reports: These are a must-have for hoteliers. Known by various names, these reports provide a snapshot of the previous day’s performance. They include metrics like revenue, occupancy, Average Daily Rate, and Revenue per Available Room). Owners and operators alike rely on these reports to gauge whether the hotel “won or lost” the previous day.
- Historical Comparisons: Many hoteliers also compare yesterday’s performance to the same day last week or last year, offering insights into trends and anomalies.
- Additional Business Insights: Modern business intelligence solutions like Otelier IntelliSight will centralize additional descriptive data points from various systems and departments across your portfolio, such as expense data that helps track P&L KPIs, pickup analysis, and competitive set benchmarking data.
Descriptive data is critical because it addresses the perishability of hotel inventory. Knowing daily performance is essential to ensuring today’s strategies are on track.
Looking Ahead: Predictive Data
While descriptive data tells you what happened, predictive data looks to the future. It helps hoteliers answer questions like, “What’s likely to happen this week or next month?”