Hotels and resorts collect massive amounts of data every day.
From reservations to food and beverage, to parking and valet, each instance money is exchanged; a valuable hospitality data point is accrued. The use of a high-quality data management system can decipher and connect these data points to predict future results and maximize profitability.
A well-integrated system can also identify and cater to high volume guests, leading to repeat visits and positive reviews. Unfortunately, many data management systems used in the industry today are outdated and cannot perform at a level to achieve optimal results.
In this article, we’ll look at some of the pain points with data management systems and some readily available solutions.
Data is Plentiful, but Often Misused
Problems with data management systems within the hospitality industry aren’t about quantity or quality: it’s about interpretation. When data isn’t aggregated correctly, there’s no point in collecting it in the first place. When systems aren’t designed to communicate across interfaces, valuable information is lost.
Independently, POS and reservation systems lack the functionality to understand patterns. They provide information but do not offer performance or trending analysis. They offer glimpses of a unique period but lack qualitative breakdowns of what that information means.
This information gap leaves revenue managers (or in the case of smaller properties, owners, and administrators) wasting valuable time trying to make sense of it all.
Even more frustrating, most data reporting is presented in a confusing and dull manner.
Critical data points are either missed entirely or allocated incorrectly. Outdated and less optimal Revenue Management Systems (RMS) won’t help capture valuable data, much less organize it in a comprehensible way.
Pattern Perception is Everything
If trends aren’t recognized, forecasts and guest outreach efforts are likely to miss their targets.
Reports that analyze insignificant data, end up being effectively worthless. With so many pain points in analyzing data, can analytics help in improving your company’s profitability? The answer is yes.
As an example, let’s look at customer outreach.
Data must be tracked appropriately over time to ensure that the best deals and rewards are targeted to the guests who will most likely use them within the period they are given. Data that’s collected and integrated will identify guests with the highest lifetime value to your property, as well as those that are once in a lifetime anomalies.
Qualitative data that’s directly from guest feedback is a powerful complement to your analytics and reporting. Unfortunately, obtaining honest feedback is traditionally difficult for the hotel and annoying for the guest.
One way to invite guest feedback is to send customer satisfaction reviews via means that they’re already using.
A recent report stated that only one percent of guests take the time to complete a traditional paper survey. By contrast, nearly 30% will complete an online survey. Properties can save time, money, and increase their customer feedback by replacing paper surveys with an automated email or express check-out option. These findings can be used side by side with your reporting to pinpoint revenue generating opportunities.
Yield Management: A Huge Opportunity
Undeniably, room rates are the most valuable and scrutinized variable in revenue management.
One of the most logical places to integrate pattern recognition into your analytics is yield management (YM).
YM is the process of using data to ensure that each room is optimally priced. It’s the perfect place for properties new to pattern recognition to start using a high-powered RMS to its full potential. By accounting for parameters such as local events, weather patterns, comp set, etc., your RMS will be able to optimize rates dynamically. The reports from a top tier RMS can complement customer generated data and help determine where your property’s resources should focus for maximum results.
Hotels of all sizes need assistance with how to analyze all the data that guests generate.
A top tier, third party system will save time, money, and prevent countless headaches. There’s no need to re-configure your current IT infrastructure. Implementing a high-quality RMS will strategically integrate guest generated data into easy to understand, focused reports. These results will help hotels deliver optimized pricing to future guests, and valued offers and incentives to current ones.
If data management is a pain point, it’s time to upgrade to a system that allows you to interpret the data efficiently. The right system will transform dull, confusing reports into colorful, easy to interpret graphics that everyone in your organization can understand. Important data can be collected from multiple sources and integrated and organized to forecast future trends and eliminate past failures. Efficient data management is the key to profitability. Isn’t it time your data management system worked for you?
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