The hospitality industry is a highly competitive, ever changing market. Consumers have more options today than ever before when choosing a property for business or leisure travel. With so much at stake, budgeting and forecasting methods must be accurate and efficient. However, given that most hospitality budgeting still lives in spreadsheets, there’s plenty of room for human error.
One of the best ways that hotels can improve accuracy and efficiency with their budget planning process is to use RM software that’s been optimized with Business Intelligence (BI). The main objective of BI software is to enable owners and managers to become more profitable by increasing revenue and decreasing operating costs. In short, BI gathers data from multiple sources, both internal and external, and then uses technology to process that data into reports, dashboards, and other analytics that will identify opportunities within a given property. BI based reporting is generally created via visualizations like graphs and charts, so it’s more accessible to staff members across teams. Since BI optimized software is typically cloud based, it can be accessed at any time by any user, making it a more efficient way to gather information. Given all of these benefits, it’s obvious that BI enhanced software will significantly help your budgeting process. Here are five specific ways that BI optimized software will make your budget planning season run smoothly.
1. Use Business Intelligence For Forward Thinking Data
Armed with business intelligence, hotels have a much greater ability than ever before to translate current and historical information into forward thinking data. While future projections and budget goals have always been a part of hospitality revenue management, it’s never been this accurate. Hoteliers have the ability to move away from perceptions based on limited data points towards an accurate analysis of their entire market as well as their projected capacity for future profits.
2. BI Offers Real Time Updates
Hotels can maximize their budget planning with BI software by staying ultra-current. There are usually dramatic and rapid fluctuations to demand and pricing. By using a multitude of data points from a property’s comp set, plus an analysis of other factors like local events and weather patterns, BI software enables hotels to utilize real time data to adjust for these changes. This unprecedented level of agility means that budgets and projections are always made using the most relevant metrics.
3. Customizable Dashboards For Deeper Data Comprehension
There are dozens of out-of-the-box RMS options on the market, but that doesn’t mean that they’re tailored to the needs of your specific property. Dashboards, metrics, and comp sets aren’t one size fits all. BI optimized software will allow you to quickly build custom dashboards and reports that are specific to your property. These reports will create a more comprehensive portrait of your data by offering a granular view of your analytics.
4. Use BI To Enhance The Guest’s Experience By Budgeting Wisely
When you have the right data, you’re better equipped to offer your guests the products and services that keep them coming back. With BI, you’ll be able to collect and analyze guest data even before they step foot on your property. BI software can examine external data points so that you’ll know which promotions and offers are generating the highest ROI. After check in, BI software can capture a guest’s buying patterns and preferences. With those statistics, you’ll be able to understand how to effectively allocate your budget for the maximum amount of guest satisfaction.
5. Better Operational Performance
BI software assists with internal operations just as well as revenue generating segments. It can assist in improving operational efficiency by identifying areas that are unnecessarily draining resources. BI enabled software will help managers order and staff efficiently so that your property will reduce overhead and labor hours.
Business Intelligence is more than a catchphrase. It’s already prevalent throughout most of the global economy, and is bound to become the predominant method of analysis within the hospitality industry as well. If your property isn’t already on board, it’s time to see what BI optimized software can really do for you and your team.
Want more tips for how to best handle budget season? Check out the second installment of Rainmaker's webinar series: