In our industry, the ultimate goal is to provide our hotel guests with exceptional services and experiences. But at the end of the day, a hotel is a fully operating business and the real bottom line is well, achieving a profitable. One of the biggest revenue generating products of a hotel is its rooms, which is why hotel technology providers have developed ever-changing revenue management products to meet the demands of hotel revenue managers.
With the help of revenue management tools, hotels can optimize their room rates according to seasonality, market changes, local events, and more. According to this article, revenue management is going through another transformation as occupancy levels are increasing and the need for advanced revenue management is greater than ever. The author mentions the change from revenue management to revenue strategy as more data and technology become available with a transition from short-term revenue management to long-term strategies for maximizing profits. Once again, the growing abundance of data is impacting hotel technology and business strategies. However, the huge amount of data doesn’t have to be as daunting as it seems. If you’re still a bit confused on what to do with all of your data, check out this article by our Head of Education for some tips on how to stay on top of your data.
Another impact that data has had on our industry’s technology is in the advancement of business intelligence and machine learning. One of the main points of hotel technology is to add convenience for hotel guests during their stay and increase efficiency for employees and management. Imagine you’re a hotel guest trying to book a room over the phone. Usually, these calls are forwarded to a call center or you’re sent on a never-ending wild goose chase of pressing numbers to reach the right place.
With advancements in AI, this is becoming less of a problem, as mentioned in this article. By using data and AI tools to better understand the customer and their emotions, the overall call center experience has been greatly improved. If you’re still not convinced, in this article, the author highlights the four main ways machine learning has improved their performance through natural language, logistics, manufacturing, and consumer data. It doesn’t just stop there though. Business intelligence touches on so many aspects of a business and is only becoming more relevant as we collect more and more data.
Data isn’t just changing revenue management tactics and the advancement of BI and AI technology tools. Even when it comes to more straightforward features of a hotel’s business, data plays a major role. For instance, a hotel’s website is not only a branding feature with information about the hotel. As mentioned in this article, hotel websites must be properly monitored, maintained, validated, and questioned according to the hotel’s data. Data standardization must be achieved to ensure data governance, data validation, and data integrity for a hotel’s website to reach its most valuable potential. Without the proper monitoring and validation of a hotel’s data, the hotel business is more prone to mistakes, which creates distrust. For example, guest reviews play a large role in representing a customer’s experience at a hotel and can sway readers’ opinions on the property. While all reviews will have some degree of bias to them, readers should be able to at least trust that they came from real people and real experiences. This article found that some hotels were boosting their rankings on TripAdvisor through fake reviews, which TripAdvisor then removed. Without some form of data governance, issues like this can slip through the cracks of the immense amount of data we are collecting at a rate that doesn’t look to be slowing down any time soon.