Maximizing Profitability Through Data Analytics

By Tina Stehle Senior Vice President & General Manager, Agilysys Hospitality Solutions Group | January 27, 2012

Competing in the hospitality environment has never been more challenging. The number of vendors and products is overwhelming. Competitors are constantly looking for a marketing advantage. And hotels within your competitive set are likely to be utilizing business intelligence more than ever before.

In this environment, hotels that succeed must do more than merely 'keep up' with the competition. They must be able to identify guest trends, recognize problem areas and develop strategies that increase profitability. They also must be able to react to market changes quickly and efficiently.

Sounds good, but how do you make it happen? With 'data analytics,' which uses guest and operational information to predict future trends and stay a step ahead of the competition. Data analytics software solutions collect transactional data from multiple systems within the organization and consolidate it into a central location. This enables hoteliers to see the 'big picture' - what's going on in every area of the business - and use that information to predict guest behavior and maximize revenue potential.

With the increased availability of standardized data analytics software, hospitality venues can now join the ranks of such consumer-centric retail giants as Amazon, Costco and Wal-Mart in using this technology to make up-to-the-minute fact-based business decisions and improve market effectiveness.

What, exactly is data analytics?

When it comes to business intelligence, most hospitality organizations generate a variety of reports from various profit centers, such as finance, human resources and operations. These reports are then often combined into highly complex, handcrafted spreadsheets. The problem is these spreadsheets may contain errors and omissions, are often difficult to interpret and are not always accessible across the entire organization.

Choose a Social Network!

The social network you are looking for is not available.

Close

Hotel Newswire Headlines Feed  

Coming up in May 2019...

Eco-Friendly Practices: Corporate Social Responsibility

The hotel industry has undertaken a long-term effort to build more responsible and socially conscious businesses. What began with small efforts to reduce waste - such as paperless checkouts and refillable soap dispensers - has evolved into an international movement toward implementing sustainable development practices. In addition to establishing themselves as good corporate citizens, adopting eco-friendly practices is sound business for hotels. According to a recent report from Deloitte, 95% of business travelers believe the hotel industry should be undertaking “green” initiatives, and Millennials are twice as likely to support brands with strong management of environmental and social issues. Given these conclusions, hotels are continuing to innovate in the areas of environmental sustainability. For example, one leading hotel chain has designed special elevators that collect kinetic energy from the moving lift and in the process, they have reduced their energy consumption by 50%  over conventional elevators. Also, they installed an advanced air conditioning system which employs a magnetic mechanical system that makes them more energy efficient. Other hotels are installing Intelligent Building Systems which monitor and control temperatures in rooms, common areas and swimming pools, as well as ventilation and cold water systems. Some hotels are installing Electric Vehicle charging stations, planting rooftop gardens, implementing stringent recycling programs, and insisting on the use of biodegradable materials. Another trend is the creation of Green Teams within a hotel's operation that are tasked to implement earth-friendly practices and manage budgets for green projects. Some hotels have even gone so far as to curtail or eliminate room service, believing that keeping the kitchen open 24/7 isn't terribly sustainable. The May issue of the Hotel Business Review will document what some hotels are doing to integrate sustainable practices into their operations and how they are benefiting from them.