Data Analytics in Hospitality Industry

DATA ANALYTICS IN
HOSPITALITY
INDUSTRY
IMPORTANCE OF DATA ANALYTICS IN HOSPITALITY INDUSTRY
• Data analytics is the science of analyzing raw data in order to make

conclusions about that information. Many of the techniques and processes
of data analytics have been automated into mechanical processes
and algorithms that work over raw data for human consumption.
• Data analytics is important because it helps businesses optimize their
performances. Implementing it into the business model means companies
can help reduce costs by identifying more efficient ways of doing business
and by storing large amounts of data. A company can also use data
analytics to make better business decisions and help analyze customer
trends and satisfaction, which can lead to new—and better—products and
services.
• Data and analytics are considered as beneficial to businesses in
general and the tourism and hospitality industry in particular.
Indeed, “each stage of the consumption behavior is influenced by
different aspects of the technology advancement”
Types of Data Analytics:
Descriptive Analytics
• A basic method of data analysis is descriptive analysis. It is considered
to be a traditional form of analytics and is now widely used for
detecting the changes altered in diachronic shifts.
• To make clear, that’s the conduction of the past trends based on the
groups of data.
• Descriptive analysis is used for standard operations in hospitality, such
as performance reports or pick-up reports.
Predictive Analytics
• Itimplies a deep understanding of the past trends of different
groups of data to prognosticate their future tendencies.
• Predictive analytics can never be 100% accurate, as it only gives
expert opinions of what might happen with the data in the future.
• As a rule, this type of analysis can provide some useful concepts
for the hotel development strategy. For instance, you can analyze
the booking history at different times to forecast the probable
room bookings for the future, which is really cost-effective for
planning the hotel management and developing strategy.
Prescriptive Analytics
• Prescriptive analytics, which includes complex processes of structured
and unstructured data computing, based on machine learning
algorithms.
• And, though it has a similar structure as predictive analytics, this type
goes further by consolidating different groups of data to issue the
results.
• For example, this data can use the location, holiday calendars,
weather, traffic, and even traveling trends for getting the most probable
prediction about the future market tendencies.
Diagnostic Analytics
•Diagnostic analytics describes the techniques you will use to ask your data:
It’s doing a deep-dive into your data to search for valuable insights.
Descriptive analytics, the initial step in most companies’ data analysis, is a
simpler process that chronicles the facts of what has already happened.
Diagnostic analytics takes it a step further to uncover the reasoning behind
certain results.
•Diagnostic analytics is usually performed using such techniques as data
discovery, drill-down, data mining, and correlations. In the discovery process,
analysts identify the data sources that will help them interpret the results.
5 Ways Data Analytics Can Help the Hotel Industry
Customer Data Analysis & Market Segmentation

• Analyzing customer data allows hoteliers to understand the
preferences and purposes of a customer.
• Customers could then be categorized into market segments.
• This segmentation helps target the right audience for
marketing and sales.
• Data analytics in hotels enables you to share relevant
promotional information with the right market segment.
Real-Time Data and Hotel Pricing Strategies
• Tracking real-time data is directly profitable for the hotel
industry.
• Analyzing booking patterns shows the demand trends which
you can use to implement dynamic pricing.
• Hotels can also use real-time data to create tailor-made
packages and offer them to the right customers at the right
time.
• Adopting a pricing strategy based on real-time data analytics
is essential for hotel revenue management.
Managing Hotel Booking Channels
• Hotels receive bookings from various channels such as online
travel agencies (OTA), direct bookings, and website bookings.
• Data analytics in hotels looks at the different mediums to
determine the volume of booking received from each channel.
• Hoteliers can use this information to understand which
channel yields the most bookings and which channel needs to
be worked on.
• This data is important to formulate the right marketing
strategy that gives your hotel bookings the right push on all
channels.
Inventory Management
• Data Analytics in hotels is useful for inventory
management.
• Keep a close track of your supply with data analytics in
hotels and identify usage trends as time passes.
• This helps you maintain a balance of inventory – you
neither run out of inventory nor have an excess of it at
any point.
• Efficient inventory management is also helpful for
successfully implementing hotel pricing strategies.
Demand Forecasting
• Analyzing customer behavior patterns and real-time
data can help you forecast demand with higher
accuracy.
• Demand forecasting analysis is useful for revenue
management, inventory management, and
implementing dynamic pricing strategies.
• Data Analytics and machine learning help define the
optimal room rate in real-time to maximize revenue.
Thank you for
listening!

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DATA ANALYTICS IN

• Data analytics is the science of analyzing raw data in order to make

Customer Data Analysis & Market Segmentation

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