Analytics, the 'Holy Grail' of Revenue Management

By Lily Mockerman Founder, Total Customized Revenue Management | March 12, 2017

Analytics are what some might call the 'holy grail' of revenue management. We build technology to try to capture them, seek new ways to apply them, and wonder how to use more of them. Dashboards and reporting suites are touted by vendors of all sorts as key to the value of their products. Meetings are driven with reports spread across a table or screen as various players on the team work to make sense of the numbers and what they mean for their business. Analytics help give us the information needed to relay suggestions to marketing, advertising and public relations teams to help identify areas that are currently experiencing success and others that may need improvement. They can be used to help predict consumer behavior and provide effective ways to use product availability and price to maximize a company's revenue growth. Using analytics as a foundation allows hoteliers to enhance their ability to shed light on how the guest will behave before, during, and after the travel planning process.

As is often discussed in leadership circles, the best predictor of future behavior is past behavior. The data analytics provides can be harnessed to predict future actions. Analytics are also imperative to forecasting both the subject's and the market place's pricing and product availability.

Big Data is the new hot button for analytics, with increasing conversation around how to harness and use it at the hotel level. Per an article from Forbes, Big Data can be seen as a collection of data from traditional and digital resources from inside and outside a company that can provide a source for continuous discovery and analysis.

Each individual guest will check into a hotel with their own set of expectations and preferences, and it has become the job of Revenue Managers to help identify areas of success and failure, so that hoteliers can achieve those expectations to deliver a returning customer. To do so, we must use in-depth data and resources to help us differentiate between customer preferences. However, despite our refrain of better use of analytics, we still misuse or ignore the basic capabilities we already have.

In the use of analytics, we see three primary issues:

1. Collection Addiction - When a company has a high level of focus on collection of data from multiple points but doesn't place enough emphasis on effective application, leaving them with a disjointed data warehouse of unusable metrics. Companies can gather an influx of data that may help tell a story, but if they don't have the ability to effectively apply the information, then it will be considered useless. This issue often presents itself when working with big data.

Choose a Social Network!

The social network you are looking for is not available.

Close

Hotel Newswire Headlines Feed  

Coming up in June 2019...

Sales & Marketing: Selling Experiences

There are innumerable strategies that Hotel Sales and Marketing Directors employ to find, engage and entice guests to their property, and those strategies are constantly evolving. A breakthrough technology, pioneering platform, or even a simple algorithm update can cause new trends to emerge and upend the best laid plans. Sales and marketing departments must remain agile so they can adapt to the ever changing digital landscape. As an example, the popularity of virtual reality is on the rise, as 360 interactive technologies become more mainstream. Chatbots and artificial intelligence are also poised to become the next big things, as they take guest personalization to a whole new level. But one sales and marketing trend that is currently resulting in major benefits for hotels is experiential marketing - the effort to deliver an experience to potential guests. Mainly this is accomplished through the creative use of video and images, and by utilizing what has become known as User Generated Content. By sharing actual personal content (videos and pictures) from satisfied guests who have experienced the delights of a property, prospective guests can more easily imagine themselves having the same experience. Similarly, Hotel Generated Content is equally important. Hotels are more than beds and effective video presentations can tell a compelling story - a story about what makes the hotel appealing and unique. A video walk-through of rooms is essential, as are video tours in different areas of a hotel. The goal is to highlight what makes the property exceptional, but also to show real people having real fun - an experience that prospective guests can have too. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.