Why hotels can’t afford to ignore business intelligence in 2015- Part 2

Why BI can do what current tools don’t ?
The current kind of retrospective – your rate shopping or production data analysis is no longer adequate to ensure the best business decisions. Yes, you can see your competitor set’s rate movement in your rate shopping report, but at a time when competition is cut-throat, you need to be always prepared for sudden increase / decrease in demand. An advanced business intelligence like RateTiger Analytics gives you high quality market insights for your revenue strategy to respond to opportunities and threats in real time for optimizing business outcome. Benchmark your competitors on key parameters to make informed pricing decisions. Plan and forecast with greater precision with historical and future data analysis.

Quality data is essential for producing accurate forecasts. Production Reports, which comes with booking pace, reservation and budget gap analysis, provides revenue managers with booking demands from all sources of online distribution broken down into market segment. Compare demand and booking pace to identify whether your sales strategy should be in promotional or allocation mode. Analyze forecasted revenue and occupancy and compare the forecasts to the same time last year. By analyzing the performance metrics, they can get a clear understanding of what makes travelers to book the property. Which channel delivers the most booking? Which OTA provides the highest RevPAR? And which delivers the most advanced bookings? What type of package are people buying here? This helps hotels identify their most valuable guests, their demography and the channel they are using for booking, and adapt strategies accordingly to maximize revenue.

Whether it is using analytics to predict customer behaviour, set pricing strategy, optimize ad spending or manage risk, analytics is moving to the top of the management agenda.
To progress on their analytics journey, hoteliers will need to focus on ways to generate insights from their technology investments, connect the insights to the relevant processes, and then link them to tangible business outcomes. Those, who implement business intelligence as an ancillary activity to a routine and integral part of doing business will make it to the finishing line faster than others.

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