Advance Analytics is The Future of The Hospitality Industry

Professionals in hospitality industry have it rough. They must constantly struggle to strike a balance between ensuring a good customer experience and generating profits.
It’s very important to give customers a memorable experience. A good experience encourages customers to visit the same hotel again and can also ensure good reviews and recommendations. But if the hotel management focuses more on customer experience, profits suffer. On the other hand, if the management focuses more on their bottom line, the customer experience gets the hit.

So, striking a balance between these two responsibilities can be tricky. But Advance Analytics can change this. With the help of this tool, hospitality professionals can strike a healthy balance between their two responsibilities, and make the most of out of their available resources.

How travel, retail and review websites can help optimize decisions

The growth of travel and review websites has opened up a whole new world of Big Data. Thanks to these websites, the hospitality industry is now equipped with a vast amount of data regarding their customers – their buying patterns, cancellation patterns, and more.

By tapping into this Big Data, professionals in the industry can strike the perfect balance between customer experience and profits. This is where Predictive Analysis comes in handy It can use all available data to find relationships between various factors and outcomes. Using these inputs, it can predict customer behavior, demand, and more.

These insights can reduce the risks of losing loyal customers due to lack of room availability or unsatisfactory experience packages. They can also be employed by the hotel’s marketing department to improve their promotion strategy. By accounting for factors like customer response rates, guest preferences, demand forecast, promotion and indirect costs, the marketing team can change strategy to maximize their ROI.

However, while optimizing resource usage and marketing efforts will help improve a hotel’s performance, these alone are not enough. For hotels to get a distinctive edge over their competition, they need to change the way they make decisions.

How one change can save a hotel

Currently, many hotels follow a reactive decision making process. They are unable to predict and plan for potential problems. Instead, they focus on fixing problems as and when they arise. However, this is no longer enough. Customers tend to expect a flawless experience, and become unhappy if this expectation is not met. And in this world of online reviews and social media, even a single unhappy customer can do a lot of damage to your brand.

Therefore, it is important for staff to avert problems before they arise, and keep every customer delighted. The only way to do that is by adopting a proactive decision making process.

For this, they first need to change the way departments make decisions. Currently, what usually happens is that each department takes isolated decisions based on their own goals. This means there is little to no communication or coordination between various departments. In this scenario, there is little room to predict and plan for future needs.Instead, the hotel should ensure that all the departments communicate and coordinate with each other. Predictive Analysis offers an easy and effective way of doing this.

All the hotel management needs to do is collect all relevant factors and targets from all departments. By applying Predictive Modelling and Analysis to this information, and other customer data, the hotel can get detailed insights into customer behavior. It can help them get a clear view of what’s happening right now, and what is likely to happen in the future. This is important for a hotel to change from a reactive to a proactive decision making process.

Using these insights, each department can ensure it is well prepared for future demands, customer needs, etc. This can help optimize expenditure, improve customer experience and raise revenues at the same time.

The 4-step journey to better decision-making

The rewards of proactive, cohesive decision making are very attractive, however, this change cannot be done overnight. But it doesn’t have to take too long either. The journey to a better decision-making process can be completed in just 4 steps:

  • Create: Introduce analytics technology and change the company culture. Ensure everyone understands the need for analytics and the importance of closer coordination and cooperation among teams.
  • Incorporate: Gather as much relevant data as possible from various sources and let the analysts use it.
  • Improve: Use the analysis insights to optimize various processes. Make use of automation where possible to assist with cohesive decision making.
  • Innovate: Provide teams with real-time decision-making support, and gather unstructured data (social media posts) for further analysis.

On completing this journey, industry managers will be optimally placed to lead their hotel towards cohesive decision making.

As technology evolves and more data sources crop up, Predictive Analysis will become more accurate and powerful. No industry or business can afford to ignore this tool for long. After all, knowing the market is the key to dominating it, and Predictive Analysis makes getting to know the market easy.