4 uses of business intelligence in the hotel industry

4 uses of business intelligence in the hotel industry

4 uses of business intelligence in the hotel industry

The hospitality industry handles vast amounts of data. Data sources range from inventory to distribution channels, customer behavior data to maintenance records. As the volume of business increases, it becomes impossible to collect and analyze it manually.

La inteligencia de negocio facilita la captura y comprensión de los datos. Se trata de un conjunto de herramientas creadas para recopilar datos de múltiples fuentes y transformar la información cuantitativa en datos cualitativos que aporten un valor.

Business intelligence systems are responsible for extracting data from various sources, transforming it, compiling it in a centralized repository and visualizing it to facilitate data understanding.

1. Customer segmentation

The hotel industry wants to give a personalized treatment to each customer.  Users can be segmented by demographics, geography, behavior, etc. Customer segmentation will help to configure personalized offers or take advantage of new opportunities in the customer experience.

2. Reserve analysis

You can cross-reference external data that influences occupancy, be it vacations, public vacations, seasonal changes, events, changes in the competitor's market or your own pricing strategies. In this way, you can find out what trends are occurring regularly and how you can respond to them to optimize your revenue.

3. Revenue management and advanced pricing strategies

Revenue management handles several KPIs such as average daily rate or total revenue per available room.

One of the focus areas of revenue management is demand forecasting, which is based on hotel bookings and market data. By obtaining market data and using historical information on your own bookings, it is possible to consider all KPIs for analysis.

4. Distribution channel analysis

Business intelligence can provide information on the revenue generated by each channel compared to distribution costs. This makes it easier to understand which distribution partners provide value.

In addition, if subject to rate parity agreements, distribution channel analysis can help identify distributors that violate rate parity and contribute to revenue leakage.

Business intelligence is a competitive advantage for the hotel industry as it helps to optimize business strategies.