We've talked a lot about the importance of data. "Use your data," "Make your data work for you" - you've heard it quite often, right? But what actually stands behind these phrases?
To illustrate the power of data visualization and data analytics, we are going to share with you a series of real cases, which could happen to any given hospitality organization. Read the article to see how data analytics helps "crack" the case. This week, we will show you how to increase your revenue by analyzing your Pick ups.
The General Manager has observed that revenue dropped by 28% in comparison to the previous period. After the cost of various marketing campaigns and additional investments in the hotel's service and facilities - the revenue drop was the least expected outcome. What a disaster for the hotel. Luckily, the hotel is using the advanced analytics solution - AnalyticsPro - and can now fix the situation within a couple of minutes.
After receiving the instant alert about the critical situation, the Revenue Manager decided to look at the Pick ups. Instead of exporting several reports from their PMS system, using AnalyticsPro, he saves time with the ability to aggregate an instant Pick up diagram on the fly, to see where the hotel is missing out on Pick ups. Well, without a doubt, the pricing strategy of July failed completely. Let's dive deeper to see why.
As the first step to look at the reason of missing Pick ups, the Revenue Manager decides to analyze the Market Segments to see what the hotel is doing differently compared to the previous period.
At a glance, we can see that we are missing out on Business segments, which was a very good revenue source in previous periods. Since the hotel doesn't have a very attractive location for the Business segment as it is not close to any airports and is in a rural area with no business centers around, what if we look at the channels instead? Where are guests coming from?
Analyzing the Channel Segments shows that the channel Sylvitravel has been bringing us the missing revenue source. No wonder - this agency is working with exhibition cooperation and is focused on providing business travelers with accommodations. After figuring out that the business travelers were the most important revenue source for July, we definitely need to revise our channel mix in favor of Sylvitravel.
The final step of diving into details is looking at the rates. In the previous period, Rate Bar1, which was the one offered to the agency Sylvitravel, brought us many more bookings. Thus, this period we set the price 30% higher for this rate and to no surprise, we missed out on this channel.
Now that the mystery of missing Pick ups has been solved, the Revenue Manager can make all necessary adjustments and increase the hotel's revenue.
Would you like to receive more tips? Stay tuned for next time!
More to come in the series...