How to properly manage Hotel Data? How can Data Management solve the problem of Demand Forecasting and room Price Optimization to maximize the profitability of individual properties?
Data management for hotels impacts not only Revenue Management but also plays a crucial role in distributing the offering through the best channels, to the right customers, at the most effective price.
Business Intelligence (BI) is the technology that enables the analysis of multiple factors (both internal and external) to achieve dynamic real-time pricing, aligning rates with changes in demand based on historical data and predictive models that identify and forecast trends and future behaviors.
What is Hotel Data Management?
Data management involves acquiring, collecting, storing, securing, integrating, and analyzing data. Hotel Data Management encompasses activities that allow for the extraction of various types of data from different sources, transforming it into meaningful information: from individual monitoring KPIs to valuable insights for making strategic decisions in hotel management.
Data Management is a critical activity involving various roles and expertise related to technical aspects (database administration), strategic aspects (business management), and security (data protection and GDPR compliance). Its importance in the hospitality industry is growing and irreversible, driven by factors such as the exponential increase in data available to properties, both in terms of quantity (due to the Internet of Things, mobile devices, apps, and social media, as well as the massive digitalization of society) and quality (accuracy and precision in audience segmentation and preference profiling, for example).
What Can You Do with a Good Data Management System?
A good Hotel Data Management system enhances market positioning and numerous other business aspects:
- Offer Type: understand customer opinions and preferences to deliver more satisfying services and implement experiences tailored to the target audience.
- Revenue Management: improve occupancy performance and average revenue by applying the most appropriate rates based on context and consumer behavior.
- Marketing Performance: identify the most profitable areas to invest in terms of visibility and conversions by accurately estimating profitability by channel.
Selecting and Collecting Strategic Data
Managing data involves focusing on “what data to collect and why.” Without a proper data management strategy, hotel administrators and operational staff risk drowning in a sea of data and numbers that are of little significance on their own.
In such a context, planning processes and strategies for data acquisition and analysis, both internal and external, becomes essential.
Internal Data
Internal data within a property comes from various areas:
- Booking Data: Data from PMS systems such as personal information, stay duration, and room price, as well as other distribution channels like websites, CRS, OTA, GDS, internal apps, etc.
- Marketing Data: Data from CRM systems that, in addition to demographic data, enhance profiling by monitoring feedback, sentiment, reviews, preferences, habits, behaviors, service usage, etc.
- Operational Data: Data from specific management areas, such as the housekeeping service, with monitoring of staff, costs, performance indicators, and guest satisfaction.
- Financial Data: Data from management crucial for monitoring and planning activities and their impact on business performance.
External Data
All these data can be integrated and enriched with information from external sources, such as:
- Geographic Data: weather forecasts, local traffic, seasonality.
- Event and Tourist Attraction Data: impact on bookings, visitor volume, and source of tourists or business guests (e.g., events and conferences influencing the volume of people and affecting saturation estimates, offer definition, and related pricing).
- Collateral Service Data: airline bookings, tourist attractions, etc.
- Market Research Data: identifying trends and new behaviors.
BI and AI Tools for Hotel Data Management
Business Intelligence and Machine Learning tools automate the collection, selection, and homogenization of basic and diverse data, extracting more meaningful information that is easy to transform into effective business growth decisions.
Traditional integrated analysis systems available to hoteliers often have limited scope; moreover, KPIs provided by separate management systems (RMS, PMS, CRM) offer descriptive insights but fail to explain causes and trends.
BI & Advanced Analytics systems enable working with historical data, applying algorithms and mathematical models, and enriching and integrating data from various sources for predictive and prescriptive analysis.
Blue BI x Hospitality Solutions
Business Intelligence & Analytics solutions tailored for hotels are more effective when they involve all business areas. Blue BI x Hospitality is a solution specifically developed for the hospitality sector, engaging various units:
- Marketing: provides a comprehensive overview of indicators, the current and future situation, and enables targeted actions for optimal Customer Experience.
- Finance: analyzes and compares past financial flows with events, including those external to typical hotel management, optimizing financial impact on costs and revenues.
- Sales: determines custom rates based on periods, availability, and expected clientele, with timely monitoring of bookings, cancellations, and competition.
With such tools, it is possible to:
- Improve daily operations of hotels and other accommodation facilities.
- Develop the business by adjusting rates, forecasts, and strategies using strategic insights unattainable with other systems.
- Constantly monitor activity with systems accessible from various devices, in real-time, 24/7.
- Increase sales and revenue.
We realize Business Intelligence & Advanced Analytics solutions to transform simple data into information of freat strategic value.
