How to Grow Your Hotel Business with Data Analytics

Digital technologies have transformed the way the hotel industry works. Right from research to planning to bookings – today, travelers use mobiles for every small and big aspect of their trip. Technology has changed the dynamics of traveling not just for the tourists, but for the hotel owners as well.

Simply put, the hotel industry is dynamically evolving and the competition is fierce. Data analytics is a powerful technological tool that can help hotel owners make relevant business decisions. If you too are looking to grow your hotel business, here are 4 ways in which data analytics can help you boost your revenue and business. 

Channel Performance Evaluation

You can now evaluate how the different channels and sources of your hotel business are performing in terms of generating revenue. Data sourced from the revenue report generated by a hotel revenue management system is easy to interpret. It displays the revenue generated from various channels and sources of your hotel. This helps you evaluate how a particular channel or source is performing and make accurate decisions about each of them. 

Make the Most of Demand Forecast 

You can also grow your hotel business by focusing on the demand forecast. With the help of data analytics, you can forecast arrivals and occupancy levels with maximum accuracy. You can get local demand data and competitor prices with the help of a cloud-based platform. This also helps you decide the optimal number of rooms to allocate in each category of your hotel. You can even make informed decisions for rates of this room depending on the data.  

Personalize with the Help of Preferences

A surefire way to grow your hotel business is to understand exactly what your guests want and meet those demands efficiently. Data analytics can help you with this. Your hotel system holds valuable information such as:

  • Check-in and check out time
  • Restaurant preferences 
  • Expenditures on extra amenities like spa treatments or room service 

All these pointers can help you create an information bank of the most common preferences of your guests. With this, you can create customized offers and enhance your customer service. This will eventually lead to increased customer satisfaction and more revenue. 

Boost Occupancy Rates

A hotel revenue management system can help you set and maintain room rates so that you can make smart pricing decisions for increased occupancy rates. The software works on supply, demand and competition factors to dynamically set rates in real-time, 24x7x365. It can update and generate prices of your hotel rooms on various channels based on internal as well as external factors affecting the booking trend. You can get valuable data for your specific locality and compare it against direct competitors to make better decisions regarding room rates. This can positively impact your occupancy rates. 

If data analytics is appropriately handled, you can not only ensure maximum customer satisfaction but also optimize your operations. All of this will add up to give increased revenue and growth in your hotel business. 

About the Guest Author:

Karan Iyer is an end-to-end digital marketer and blogger who inherently understands the hotel industry with his hospitality background. Karan knows how to convert the pain points and challenges of the hotel industry into business opportunities, and that’s what he writes about for his readers. He also shares industry trends, insights and news to help his readers stay up-to-date.


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