In today’s digital economy, data is becoming a critical resource for organizations across many industries, including the hospitality sector. Hotel data analytics has provided its users with a tactical plan for increasing visitor pleasure and profitability in a short period of time.
The fact that hospitality business intelligence is quickly overtaking all other technologies as the most in-demand one in the hotel sector shouldn’t come as a surprise.
Exactly why not?
Right now, it is best to refrain from expecting miracles and instead focus on gathering knowledge. You may achieve success by utilizing all BI services and tools available to obtain insights that are most pertinent to you at the appropriate moment.
There’s a catch, though. Have we ever understood what business intelligence (BI) is and why it is so important for the hotel sector, despite the fact that it has become a buzzword?
If not, worry no more, as we are here to explain everything in detail. Let’s take a look at them right away!
Business Intelligence - A Brief Overview
Business Intelligence refers to a set of methodologies, processes, technologies, and tools that are used to collect, integrate, analyze, and present data to help organizations make informed decisions.
BI provides insights into business performance and helps organizations identify trends, understand consumer behavior, and make data-driven decisions to improve their operations and achieve their goals.
BI typically involves the use of dashboards, reporting, data warehousing, and data mining to provide a comprehensive view of an organization’s data and enable stakeholders to make informed decisions.
What Is Hotel Business Intelligence?
Business intelligence is the strategic use of software to gather, examine, and understand data from both internal and external sources in order to make decisions that will have an impact on revenue in the hotel sector.
Business intelligence can fundamentally alter the game for revenue managers and hotels alike with the right technology in place, enhancing decision-making and simplifying the management of data.
It does, however, provide a unique set of challenges. Business intelligence is a tool used by hotel revenue managers to fully comprehend their hotels’ data. Making revenue decisions that will improve performance, adapt to market changes, and ultimately raise hotel profitability is the next step.
Why Should Hotels Choose Business Intelligence?
1. They Help Get Hold Of Your Past, Present, and Future
It is possible to compare historical data, current data, and prediction analysis when using big data analytics for hotels. This provides a limitless and comprehensive picture of all the data in your firm.
For your hotel to operate effectively, this kind of strategy is required, whether it’s used to prepare for the future or learn from the past. You may compare multiple factors over any period of time using business intelligence tools for the hotel industry. To determine whether or not their strategy is successful, hotel management must be prepared to take action should problems develop in the future.
Consider your company’s occupancy rates, pricing strategy, or how many bookings originate from a certain source. By doing so, you’ll be better equipped to examine all of the aspects that influence your company’s success or failure and alter your strategy as needed.
2. Do Different Things With Data
Business visionaries may be distinguished from the crowd by how they use the knowledge they possess. Since gathering data is a routine job, no points are given for it. The value of the data is determined by its interpretation, including any analysis, slicing, and dicing that occurs, as well as the conclusions reached as a result.
Because they enable you to completely examine all of the data your hotel has gathered, solutions for hotel business intelligence are crucial. It puts everything in perspective for you, including information on your clients, employees, point-of-sale systems, income-expense sheets, visits, reservations, and more, enabling you to address problems and make changes. Putting things into perspective enables you to improve your weak points while enhancing your existing strong points.
The purpose of hotel business intelligence is to modify your existing strategy in order to lower operational costs, increase revenue, and find ways to better your company’s overall performance.
3. Change From Chaos To Context
Many PMSs now provide reporting capabilities. Hotelogix provides over 100 reporting options to assist hoteliers in easily accessing all important data for their facility. Despite the fact that it helps hoteliers keep track of hotel activity, the primary purpose of this program is not data analysis.
These papers give a synopsis of the data. Manually examining these data and drawing conclusions may take some time. Consider this: How many of these 100 reports will you analyze and interpret by hand? What kind of chaos would ensue? It exhausts me just thinking about it!
In this case, the utilization of BI tools is critical. All you need to advance your organization is a PMS that can link to a BI tool. While the PMS can handle and automate the majority of your operational duties, the Power BI services can give you the appropriate information at the right time, allowing you to stay ahead of your competitors.
Everything from revenue management to pricing strategies and occupancy forecasts will be made available to you based on your past and present data. There will be no more bustle to distract you. You may achieve your objective with a lot more clarity and knowledge if you use hotel business intelligence tools.
4. Goodbye to silos, hello to a holistic strategy
You won’t need to consider your hotel as a group of departments after you’ve integrated a hospitality business intelligence solution with your Cloud Hotel PMS. Collaboration inside silos may be essential for tactical reasons. As a hotelier, you may ensure the institution’s success the best by treating it as a single unit. Like cogs in a machine, each department at your hotel operates as one.
Hotels employ business intelligence because it gives managers an all-encompassing picture of the firm. After that, you may take steps to address problems that endanger the general effectiveness and success of your hotel.
5. Act on the insights to build a sustainable business
Consider the following scenario: Your hotel receives bookings from a number of sources, including your website, walk-ins, OTAs, GDS, local travel agencies, and so on. And you want to know which of them will be the most lucrative for your hotel over a certain time period.
You will have quick access to this data if your hotel BI tool is connected to your PMS. In order to accurately depict how much business each of these sources has generated for you throughout the time period you select, it will thoroughly evaluate all of the booking data you’ve collected from all of your sources.
This information is crucial since your business can be spending a lot of money on an OTA with a low or even negative return on investment. With this knowledge, you may confidently end your agreement with the OTA in issue and save a significant sum of money.
BI tools are also helpful for benchmarking. They pinpoint the areas in which you fall short of your rivals and provide guidance on how to not only reduce the gap but even overtake them. Given all of these aspects, using business intelligence by hotels in the near future is both logical and essential.