The number of connected devices across the globe by 2025.
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Why data analytics is the future of everything? The data explosion is the most striking result of the digital revolution. The usage of data analytics has become the deciding factor between the success and failure of firms in the modern data-driven world. Even in the hotel sector, data analytics and data science play a crucial role in helping smart travelers make quick decisions. It helps smart hotel owners forecast market occupancy, send alerts to optimize prices, and learn about client trends as well.
Why data analytics is important for business? Making data-driven decisions has helped hotel owners transform their businesses, reduce costs and save time. They also gain a competitive edge thanks to the impact of data analytics on revenue management and pricing. Continue reading to learn how these analytics can help your hotel increase its revenue.
Top benefits and data analytics uses.
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Key Statistics
1. The Global Data Analytics Market size was USD 34.81 billion in 2021 and USD 41.22 billion in 2022.
2. It will grow at an Annual Growth Rate (CAGR) of 18.57% to reach USD 96.77 billion by 2027.
3. 65% of global enterprises increased their analytics spending in 2020.
4. 94% of business and enterprise analytics professionals say data and analytics are critical to their firm’s digital transformation programs.
5. 60% of companies around the world use data and analytics to drive process and cost efficiency.
What is hotel revenue management? Why revenue management is important? Revenue management for the hospitality industry is based on a process that uses data analytics to forecast customer behavior, and optimize pricing to increase revenue. In other words, it means finding out what your customers value most. While knowing trends in supply and demand as well. Looking for a data analytics overview and how it can impact revenue management or revenue management software for hotels? Keep reading.
Best Revenue Management Company in India
How Usage of Data Analytics Can Impact Revenue Management?
How data analytics works and impacts pricing and revenue management.
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The hospitality sector has become highly competitive on a daily basis. Senior managers of hotels look for revenue management tools that will help them gain some form of an edge over their rivals. Hotels can no longer ignore the usage of data analytics to achieve the desired results.
360 Degree Revenue Management Company & Solutions
At Revnomix Solutions, we believe that the Revenue Management concept and Data Analytics are correlated. Effective use of Data Analytics in strategy-making will result in consistent growth in occupancy and revenue for the hotels. Some of the areas where data analytics impacts Revenue Management are as follows:
1. Product and Pricing Decisions – Pricing is one of the most crucial factors that determine whether a room is sold and if the hotel can generate a profit from that sale. Under-price a room and the hotel might lose revenue and over-price a room and the room might go unsold. With the usage of data analytics, revenue managers can look at past patterns, compare the existing pricing patterns of rivals and arrive at an ideal room price for each category in the hotel. The dynamic pricing strategies will enable the hotel to react to changes in demand in a timely manner as well.
2. Channel Management System – Channel management strategy is a vital aspect of revenue management. With data analysis benefits, a hotel can identify:
• Which channels are doing well.
• The region where the bookings are coming from.
• The prices at which each room category is sold on various channels.
• The booking pace of each channel, the seasonality of bookings, etc.
The usage of data analytics will help provide insight into the marketing efforts on each channel, how to derive maximum profits from each channel and whether it is beneficial for the hotel to be on that channel.
3. Booking Patterns – The usage of data analytics will help identify the booking patterns for each room category in the hotel. These patterns will involve knowing the demand for each room type based on region, time of the year, market segment, and pricing. This helps to forecast occupancy and make pricing strategies.
4. Data Filtering – A hotel creates a large amount of data on a daily basis. But not all the data needs to be analyzed. For a data analytics report to be effective, the right data has to be processed.
Revnomix will fulfill all your data analytics requirements.
Besides the above areas, data analytics also plays a vital role in marketing, managing customer relationships, and effective use of loyalty programs. Revnomix Hotel Data Analytics and Revenue Management services have helped over 200 global clients grow over the years. Did you know? With the combined experience of over 100 years in the hotel industry of India and abroad, some top-of-the-line hotel brands have shown faith in us such as The Leela, Ramada, and Hyatt. Finding the best revenue management software? Click below.
One of the Top Revenue Management Systems for Hotels
What Should Be Included in the Usage of Data Analytics for Revenue Management?
This is how data analysis is done.
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Our experts advise that the usage of data analytics for revenue management should include as follows in order for hotels to thrive and maintain their competitive edge.
1. Real-time Demand Metrics – A 365-day analysis of hotel rates for each room type and the specific options offered for each room type is advised. Why demand forecasting is important? It’s crucial to be aware of these market demand metrics in order to ensure the best pricing for any new bookings.
2. Inbound Search Volume – Prior to accepting bookings, hotels can adjust rates in order to secure bookings at the best rates by forecasting which dates will have rising demand over time.
3. Perceive Macro Demand – Many factors influence demand for a location. For accurate pricing and market demand, it is crucial to know these factors as follows.
• Travel agent hotel booking searches.
• How often do hotel prices change?
• Hotel cluster search analytics
• Flight search data trends.
4. Ranking of Online Reputation – Prior to making a hotel booking, the majority of guests compare the online reputation rankings of the hotels that are offered on many online booking platforms. The ranking system for hotel stays includes the ambiance, comfort, location, amenities, staff, value for money, etc. The service delivery of a hotel will have an impact on these factors. Analytics of reputation data must be infused into revenue management strategies in order to learn what matters to guests.
5. Travel Patterns – It is crucial for the hotel revenue management company to analyze flight search data. Flight travel patterns are closely related to hotel bookings. In order to know travel intent and potential hotel bookings, it is vital to have flight search data as well.
[Also, Read: Top 5 Benefits of Data Analytics for Managers & Hotel Owners]
Why Usage of Data Analytics is Important to Increase Hotel Revenue?
Big data impacts savings and profits.
Image credit: https://financesonline.com/big-data-statistics/
Data is power. But only to the extent that its insights are revealed. Our daily creation of 2.5 quintillion bytes of data is useless unless it is processed using big data analytics. Big data market size and market share only give numbers in billions, but its overall impact on the world economy is trillions of times larger. And it greatly helps to have all the data you require at your fingertips.
As per a recent study, firms that use data analytics have 25% faster innovation cycles, 17% improved efficiencies, 13% more effective R&D, and 12% better goods or services. How to increase hotel revenue? Data analytics provides useful data on how to manage resources, make better plans, and know guests in order to boost revenue. Here are some ways to show how the usage of data analytics can increase revenue.
1. Right Segments – The ability to target goods or services to many market segments depend on creating the right market segments. Data analytics-driven guest segments can assist hotels in creating more tailored marketing efforts to cater to the needs of their target market. This means that by offering goods and services based on real-time data, your hotel will be able to boost revenue from diverse segments.
2. Accurate Forecasts – The secret to the success of a hotel is to plan. It’s how you share resources, forecast trends, and decide what needs to be done. The use of predictive analytics creates accurate forecasts through the usage of data analytics in great detail. Data analytics for managers and hotel owners can help adjust better to the changing demand and boost revenues.
3. Automation of Tasks – Daily tasks that are performed by machines with little to no human input are known as automated data analytics. In simple terms, this frees up the staff to focus on more crucial tasks. It enables hotels to manage “Big data”, which includes data collection, upkeep, and more. The benefits mostly come from raising productivity and improved service quality.
4. Identify your Hotel’s Strengths & Weaknesses – Today’s hotel owners are more aware than ever that they are up against huge challenges. Success or failure in the hotel sector can depend on one’s capacity to foresee, adapt, and pivot in the face of change. But in order to adapt to change, you must be aware of your strengths and weaknesses. Hotels can identify areas to improve and perform better by an analysis of their operations through the usage of data analytics.
5. Create Tailored Digital Experiences – Goods and services are customized based on the unique needs and wants of your guests. For specific guest segments, your hotel can create tailored digital experiences with targeted messages. This will enhance the bonds between guests and hotels, boosting brand loyalty and revenue.
6. Guest Analysis – Any hotel can use data analytics to create the best marketing strategies that target both current and potential markets. These insights into age, gender, income, spending habits, etc. have a positive impact on hotels and their ability to increase revenue.
7. Historic Analysis – Data analytics can show how and why guests behave as they do at every stage of their journey. Hotels can create more agile marketing strategies by adding insights from behavior analysis.
Data footprint of humans worldwide.
Image credit: https://financesonline.com/big-data-statistics/
Today, both small and big hotels produce vast amounts of data. Every digital touch point creates a data footprint. It is not enough to just know how to collect and manage this data. The ability to absorb and interpret this data in ways that enhance results is a must for hotel owners. With the right data analysis steps and tools, you put yourself in the right place and at the right time to get ahead of the pack.
[Also, Read: 5 Ways to Boost Hotel Value with Revenue Management Strategies]
Conclusion: How Usage of Data Analytics by Revnomix Helped Hotels?
Revnomix has helped some big names in the travel and hospitality industry all over India and the globe. A few data analytics examples are below.
1. The Leela Group – Due to data processing and usage, The Leela, a Luxury Hotels and Resorts brand with a wide range of award-winning properties, contacted Revnomix. These problems were caused by the fact that there was a lot of manual data processing and that data from various hotels were available in various formats. As a result, the management was unable to interpret all data in the same way.
Data analytics and business intelligence by Revnomix.
We delivered a single database that contains various data from the proprietary systems (PMS, RMS) of each hotel group. For unit-to-estate level analytics, external data from sources like Rate Shopping, STR, Demand 360, etc. were combined. For all daily data and analytics needs, such as forecasting, pattern, price, and pace analysis, a common BI platform was developed.
Revenue Management Solutions Provided to 200+ Hotels
Image credit: Taj Tristar, Telangana.
2. Taj Tristar, Telangana – A 3-star hotel in Telangana which opened its doors in 2001, is renowned for providing a fusion of opulence and hospitality. As a result of being hired as revenue management consultants, the Revnomix team discovered the concerns as follows.
• The hotel was not receiving a good amount of bookings from the leisure and non-corporate segments.
• The rival hotels received more bookings because they were better ranked on OTA platforms.
• The hotel was struggling greatly with its general low occupancy.
Due to the setup problems, pricing was flat and never reflected correctly. Pricing was adjusted with the usage of data analytics in accordance with the patterns discovered through historical data analysis work. Also, with a base DOW pattern and rate push in accordance with pickup and price sensitivity.
The average annual increase in room sales based on the day-of-the-week pattern was 74%. The hotel’s position on the Price Volume Matrix improved, and it earned more balanced revenue by DOW. Compared to the prior year, DOW’s revenue growth increased on average by 55%.
3. Hotel Ramee Guestline, Bangalore – A 4-star hotel with a location about 30 minutes outside of Bangalore is the Hotel Ramee Guestline. The 96-room property is well known for being a weekend getaway spot, conference location, and wedding venue.
Inaccurate pricing and occupancy forecasts were a result of the current booking pace. Whereby rooms were reserved only one or two days in advance. The booking rate as well as the overall occupancy and forecasting were improved through the usage of data analytics tools.
Image credit: The HQ Goa.
4. The HQ, Goa – One of Vasco, Goa’s top business hotels is The HQ Hotel. Vasco Da Gama train station is about a minute’s walk away, Baina Beach is 1.8 km away, and Mormugao Port is 3.1 km away. The hotel’s modern rooms and suites are spacious and well-equipped. Two dining outlets, a rooftop bar with ocean views, a bakery, an outdoor pool, and a game room are all present. It is popular among both locals and business travelers. As for its location and distance from well-known tourist attractions, the hotel only receives a small number of visitors.
With the usage of data analytics, Revnomix decided to implement the proper tactical measures to increase the Pace and Average Length of Stay in response to demand forecasting concepts and trends. In order to increase lead time and increase bookings far in advance and rates close at hand, promotions like Advance Purchase and other fenced products were introduced.
Are you searching for the top hotel revenue management companies in India or the best hotel revenue management software? Contact us at info@revnomix.com to know how the Revnomix team can improve your hotel’s performance.
Summary
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2023 Guide to Usage of Data Analytics in Revenue Management
Description
Revnomix Solutions can improve your hotel’s performance & increase revenue with revenue management services and the usage of data analytics
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Revnomix Solutiuons
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