Revenue Management Between AI and Traditional Technology, Never Lost the Hotel Data in Between
By Ahmed Mahmoud Founder, revenueyourhotel.com | October 2023
The volume of data, as well as where and how to even start analyzing and using it, frightened hotels for a very long time, which led to more than simply underutilization.
Effective data utilization can give hoteliers the chance to enhance customer experiences, increase revenue, and set the right strategy.
In general, hotels gather information from internal and external sources. If we start with the internal sources, which, for simplicity's sake, let us call small data, this "small data is the most familiar to hoteliers and often the most valuable and can be easily managed, such as occupancy data, RevPAR, market penetration index, Average Rate Index, room revenue, etc. Where the majority of the small data comes through hotel operations, it generates a vast amount of data literally every second, such as when a guest makes an online booking. That's new data. When the guest steps into the hotel and makes a check-in, that's new data. When a housekeeper marks a guest room as clean, that's new data. Everything that happened within the guest cycle in the hotel, starting from making the booking till the check-out (you name it), is new data.
With the guest cycle (pre-arrival, arrival, occupancy, and departure), hotels collect guest data with the guest's permission, but how many truly use it effectively? The valuable facts and figures of guest data appear non-stop, but how do hotels take advantage of them? If the data is not properly administered and most information is either lost or unused, the hotel will lose revenue.
These interactions by our customers leave many types of digital data traces that indicate their locations, spending habits, preferences, and satisfaction levels. These data include search engine queries, website traffic, transaction records, social media posts, and geographic locations." In addition to all of the above factors, for many businesses in the hospitality industry, something as simple as the weather can impact travel demand. The best practice today is to use Big Data sources to predict the weather as accurately as possible and then use the weather forecast as yet another input into the forecasting model. Accomplishing all of this requires significant effort and assembling a talented team of Big Data engineers.
Big Data Era