Hotels have a wealth of data waiting to be analyzed, leading to insights to improve decision-making. In addition, bringing all the data into one system will enhance the insights about correlations between many variables to grow revenue and profits.
The most effective approach to commercial analytics is typically holistic, taking a cross-functional view of data and analytics. The method involves breaking down silos between departments and integrating data and insights from different areas of the organization, such as revenue management, marketing, sales, and operations. A holistic approach to commercial analytics allows hotels to gain a more complete and accurate picture of their business and to make better-informed decisions based on insights from across the organization. This approach also allows for more effective collaboration between different departments, as teams can work together to develop integrated strategies that consider the organization’s needs and objectives. Here is how a hotel can implement commercial analytics, starting with the definition.
What is commercial analytics?
In the hotel industry, commercial analytics involves analyzing data related to all revenue sources, hotel operations, and customer behavior to make informed decisions and optimize business performance. This can include various activities, such as analyzing sales and revenue data, tracking customer behavior and preferences, monitoring competitor pricing and performance, and optimizing marketing and distribution strategies. Some specific examples of commercial analytics in hotels include.
- Revenue Management involves analyzing sales and revenue data to optimize room rates and inventory to maximize revenue and profitability. This includes demand forecasting, dynamic pricing, and inventory optimization techniques.
- Customer Analytics involves analyzing customer data to understand preferences, behavior, and patterns. This can include analyzing data from loyalty programs, online reviews, social media, and customer transaction data to identify opportunities for upselling and cross-selling.
- Marketing Analytics involves analyzing data related to marketing campaigns and distribution channels to optimize marketing strategies and improve conversion rates. This includes analyzing website traffic, social media engagement, email marketing campaigns, and tracking the performance of online travel agencies (OTAs) and other distribution channels.
Commercial analytics in hotels is about leveraging data to improve business performance and drive growth by making informed decisions based on insights and data-driven strategies.
The 360-degree view of commercial activities refers to a comprehensive and integrated analysis of all aspects of the hotel business that impact commercial performance. Here are some critical components of a 360-degree view of commercial activities.
To achieve a 360-degree view of commercial activities, it is essential to integrate data and insights from all these business areas. This requires breaking down silos between departments and establishing a culture of data-driven decision-making across the organization. Taking a comprehensive and integrated approach to commercial analytics, hotels can better understand their business and make better-informed decisions that drive performance and growth.
While commercial analytics can bring significant benefits to hotels, several challenges can make it difficult to implement effectively. Here are some critical challenges hotels may face when implementing commercial analytics.
Overall, while there are challenges to implementing commercial analytics in hotels, these challenges can be overcome with careful planning, investment in the right technology and talent, and a commitment to data-driven decision-making across the organization.
Implementing commercial analytics in a hotel requires a well-planned and well-executed implementation plan. Here’s a step-by-step outline of an implementation plan for commercial analytics in a hotel.
Overall, implementing commercial analytics in a hotel requires a carefully designed implementation plan tailored to the hotel’s specific needs and objectives. Following a structured approach, the hotel can successfully implement commercial analytics and benefit from data-driven decision-making.