Maximizing Profitability Through Data Analytics
By Tina Stehle Senior Vice President & General Manager, Agilysys Hospitality Solutions Group | January 27, 2012
Competing in the hospitality environment has never been more challenging. The number of vendors and products is overwhelming. Competitors are constantly looking for a marketing advantage. And hotels within your competitive set are likely to be utilizing business intelligence more than ever before.
In this environment, hotels that succeed must do more than merely 'keep up' with the competition. They must be able to identify guest trends, recognize problem areas and develop strategies that increase profitability. They also must be able to react to market changes quickly and efficiently.
Sounds good, but how do you make it happen? With 'data analytics,' which uses guest and operational information to predict future trends and stay a step ahead of the competition. Data analytics software solutions collect transactional data from multiple systems within the organization and consolidate it into a central location. This enables hoteliers to see the 'big picture' - what's going on in every area of the business - and use that information to predict guest behavior and maximize revenue potential.
With the increased availability of standardized data analytics software, hospitality venues can now join the ranks of such consumer-centric retail giants as Amazon, Costco and Wal-Mart in using this technology to make up-to-the-minute fact-based business decisions and improve market effectiveness.
What, exactly is data analytics?
When it comes to business intelligence, most hospitality organizations generate a variety of reports from various profit centers, such as finance, human resources and operations. These reports are then often combined into highly complex, handcrafted spreadsheets. The problem is these spreadsheets may contain errors and omissions, are often difficult to interpret and are not always accessible across the entire organization.