Hospitality is one of the most satisfying and rewarding businesses today. If you run one, you would like to see it grow for not only the financial gains but for competitive edge too.
Thanks to technology, you can keep your hotel profitable in many ways, with the first one being data management.
Proper data management involves reporting and analytics.
If you are starting your hospitality business or you need to grow your existing one, you should have appropriate strategies for reporting and analyzing your data.
Don’t worry if you are not familiar with this. This guide will discuss everything in detail to help you grow your business in the right way. Keep reading!
What Is Data Reporting in Hotel Businesses?
Data reporting is the process of collecting raw data, formatting it, and translating it into an easy-to-understand summary from where you locate the much-needed “actionable insights” – the trends your business strategy should be aware of.
Ideally, your reports will present the basic figures in your business. For instance, they should indicate ADR, occupancy, and RevPAR.
Data reporting is vital in every business, including hotels. When you use reports, you get to see the actual figures of what you are spending your valuable time and resources on.
The reported data can help you make informed decisions about how best to spend your time to optimize income.
What Is Hotel Data Analytics?
Data analytics is a systematic process of applying logical techniques to display, illustrate and describe data, which you’ll be happy to hear computers are exceedingly good at!
Great hospitality software will present the collected data in an easy-to-understand way to help management make vital decisions within the business.
There are two main methods of data analytics:
- Qualitative – which answers the questions why, where, how, and so on. Qualitative data comes from the data you gather from surveys and physically speaking to guests
- Quantitative – which measures numbers/numerical data. Usually, data gathered from your PMS, your channel manager, your website, and social channels
What’s The Importance of Data Reporting and Analytics in Hospitality?
In today’s information age, the longevity and success of a hotel, B&B, motel, inn, or any business for that matter, largely depends on how it reports and analyses its data.
Effective data collection and representation techniques allow the business to get insightful business ideas that can boost sales and help win more guests by streamlining processes and ironing out bottlenecks.
Here are the main benefits of having optimized reporting and analytics in any hospitality-based business:
1. Better Communication
Communication is vital in the workplace. Communication removes obstacles that detract from efficiency and collaboration.
A study by Salesforce showed that 86% of respondents cited lack of collaboration or ineffective communication for failures in the workplace.
Effective reporting improves internal communication.
When providing constructive feedback, managers using concrete examples of their direct report’s performance will have much clearer and more meaningful conversations.
When discussing goals, managers that connect the expectations of the team to the organization-wide strategy ensure that their team members understand how their contribution supports a bigger vision, which leads to better-motivated staff.
That understanding is far more powerful than a staff-member feeling like they should do something just because their manager told them to.
When your business collects helpful information and makes it available to everyone using automated reporting techniques, all staff will always be aligned, which means that everyone is working toward the ultimate goal of the business at all times. What’s not to like, right?
Improved communication in your hospitality business converts to unity, and this can boost your business growth. Especially when you have remote workers, or project-based, dynamic teams, optimized reporting and analytics can always create some form of unity and make communication easier, despite the distance and organizational barriers.
Creating an environment where effective communication is the norm isn’t always easy, but it is an essential characteristic of high-performing teams. When your team is not communicating well, poor performance usually follows.
Managers who constantly seek to improve their team’s communication (and set the right tone themselves) create a happier working environment for their employees and deliver better business outcomes.
2. More Productivity
Your property can only remain relevant in today’s competitive business environment if it is productive. Optimized data reporting and analytics can increase productivity in the following ways:
Accuracy – planning, budgeting, and forecasting processes entirely depend on accuracy.
If you have efficient data reporting and analytics systems, your data will always be accurate, which means that you will make the right decisions for your business.
Accuracy translates to better productivity in the long term because you do not have to go back and correct errors from inaccurate information, or make catastrophic errors based on that bad data.
Timeliness – proper reporting management systems cut out the time that staff would normally spend compiling paperwork and translating data.
Optimized systems help management get the data they need in real-time and expose it to leadership within the shortest period.
Improved timelines mean that your operation is more likely to meet its targets on time.
3. Improved Decision Making
Finding the right type of guests for your property is an important step to making better decisions moving forward.
Business analytics gathers data from multiple sources, and this data is used to create a demographic of your property’s ideal guests, based on your own best-value business case.
For example, if you notice that double-occupancy always drops off before a certain time slot, you know what to address – and can think of offering different packages that play to this.
In turn, this profile determines what types of services your guests want or need. So it is a powerful tool while deciding about how to improve current services and offerings.
By embedding data analytics into their core strategy, hospitality managers can streamline processes, identify guest trends, monitor emerging risks, and build mechanisms for constant feedback and improvement.
Driving analytical transformations will thereby enable hoteliers to gain a competitive edge and stay at the forefront of hospitality.
4. Better Identification of Problems
Like in other businesses, hoteliers are faced with a myriad of issues. You may never know what these issues are unless you implement an effective data reporting and analytics system.
With a competent hotel management system, the leadership team will be able to immediately see where the issues are and create quick solutions to solve crises before they even happen.
Early identification of issues through reporting and analytics helps leadership to anticipate the needs of the business and plan towards them.
This applies across the industry and includes; staff requirements, food and beverage, security, and transportation.
5. Cost Savings and Revenue Generation
An optimized reporting and analytics system can help you cut substantial costs and increase sales.
As everyone knows, it costs much more to convert new guests than it does to retain the ones you already have.
Hoteliers that overlook grievances will find that their guests ultimately switch to other accommodation providers.
Since companies are constantly gathering guest data already, an analytics solution can help transform that data into powerful guest profiles.
These profiles can provide insights such as which guests are staying with you, how long they are staying for, and what specific food, beverage, and services they are purchasing.
This information enables your team to address potential problems and find the best offerings and mixes to suit a guest’s unique needs.
And before you cry out “Big Brother!,” let’s not forget we are talking about aggregate data here, not actual individual transactions. For example, if we collect all check-in/check-out times of all guests who have booked a “family package” over the past period, we can confidently assume a collective behaviour that “all” families seem to display, and maybe enhance our future packages to accommodate this trend.
Taking the time to cultivate relationships with your guests rather than just pushing for a sale will demonstrate that you understand their needs. Relationship building reinforces guest loyalty and costs much less than replacing lost guests.
6. Better Guest Service
One way to outpace other hotels is to offer a seamless, engaging, fit-for-purpose, and easy-to-use guest service platform that will bolster guest loyalty.
A 2016 study found that guests said the most important attribute of the guest experience was fast response times, with 75% of guests ranking this as the most important element.
So, when a guest has an issue, they want it resolved fast. Response times should be a key metric that you report on.
Fast response time is a metric that hoteliers all over the world are now shifting their focus to, so you should make it a priority too, or risk being left behind.
A study by Livechatinc found that average response time has been going up year on year. In 2016, the average first response time from hoteliers studied was 56s. In 2017 it was 5 seconds faster at 51s, and in 2018, it was 3 seconds faster again at 48 seconds.
Consistency across channels was ranked second, with 55% of guests saying this was the most important attribute to the guest experience for them.
This is where having a consolidated and consistent approach, such as what can be achieved with a mobile app is so important.
52% of guests said knowledgeable staff was the most important attribute to the customer experience for them.
To tackle this need, you can use data collection, reporting, and analytics to design staff-training criteria and educate staff to ensure the best guest experience, based on real data from your own business operation.
The Bottom Line for Hoteliers
Every property needs optimized reporting and analytics systems. Without it, the managers will solely work on the trial and error method, which may have worked in the past but in this day and age, one has to combine experience with hard data to up the service game and ultimately beat the competition.
If you want to make sound decisions and make your property competitive and profitable, invest in reliable data analytics and reporting systems and you will enjoy all the above-mentioned benefits as well as all the perks that come with having a highly profitable business.
Data reporting and analytics can be challenging and time-consuming for managers. For the best results, systems and software built by industry experts should be employed to save both time and money.
protel helps hoteliers like you to collect and analyze your property’s data based on your specific needs.
protel’s detailed management reports include discounts, future calculations, top bookers, arrivals, departures, revenue reports, and much, much more.
protel’s Marketplace puts the power of analytics in your hands. Choose from numerous options across multiple industry vendors that can help you analyze marketing efforts, guests’ behavior, sales, and much more.
Contact protel anytime to learn more about how you can improve your hospitality business with the power of modern analytics and reporting.
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