5 Resources for Your 2024 Hotel Business Intelligence Strategy
The skyrocketing availability of data over the past decade has brought hospitality to a point where every team member across a hotel organization should be relying on analytics to make more informed decisions throughout each day.
Accessing that data, however, often remains a challenge. Thankfully, hotel business intelligence tools have evolved rapidly to improve the process of collecting, tracking, analyzing, and understanding internal and external data, allowing hoteliers to make informed revenue, sales, and distribution decisions.
With these tools, hotel companies can lay the groundwork for a data-driven culture across their organization, providing an environment where data is valued, readily accessible, and used consistently to drive decision-making processes.
The following resources are aimed at helping hoteliers understand how to use data analytics to drive profitability in an environment where demand and revenue are flatlining while operating costs continue to rise.
It’s a cost-cutting environment
As hoteliers refine their forecasts for the remainder of 2024 with a focus on steadying profit margins, an evident deceleration in top-line revenue has many shifting their focus to controlling costs.
Recent reports point to increased pricing pressure across the industry and demand patterns that have flatlined after years of post-COVID growth. Some experts suggest that the return of group business may never materialize as many hoteliers across the industry have been counting on.
One specific area hoteliers have struggled to optimize profitability is in the F&B department. From increases in energy costs to ingredients and labor, rising costs are outpacing revenues, in many cases.
Analyzing non-room revenue trends and centralizing data from all the revenue sources across a hotel will help hoteliers make more profitable decisions.
13 of the top KPIs you should be tracking
In the competitive landscape of the hospitality industry, leveraging comprehensive Key Performance Indicators (KPIs) is essential for informed decision-making and strategic planning. Leaders across operations, revenue management, food and beverage, and other departments can use data and analysis to monitor and optimize various aspects of a hotel business.
Setting targets and benchmarking against the right KPIs can help hoteliers improve operational efficiency, drive revenue growth, and deliver exceptional guest experiences.
Here are 13 of the top hospitality-specific performance indicators and metrics that will sharpen your 2024 business intelligence strategy.
Constantly revisit that budget and forecast
Accurate hotel budgeting and forecasting requires year-round attention and a proactive approach. Using historical data, integrating diverse data sources, and enabling collaboration among key stakeholders will result in more accurate business projections to help you build successful strategies.
While annual financial budgeting is a process typically relegated to the back half of the year, the smartest hoteliers know budgeting is a year-round process and that a more dynamic forecast is crucial to staying ahead in today’s market.
Download this whitepaper to learn how to:
- Build a framework with the right budget drivers
- Ensure collaboration among key budget stakeholders
- Forecast more frequently to inform dynamic profit strategies
Strive for Total Profit Optimization
Understanding labor and amenity costs, analyzing non-room revenue trends, and centralizing data from all revenue sources is arming hotel commercial teams with the right data to make more profitable decisions. In recent years, hoteliers have made considerable progress toward a more holistic view of their properties, focusing more attention on ancillary sources in their revenue management purview.
This whitepaper covers:
- TrevPAR: The key metric behind Total Revenue Management
- Applying revenue management principles to F&B and spa
- Driving ancillary revenue with flexibility
- Understanding profit margin at each outlet across your property
See Otelier’s BI tool in action
Take a look at what a hotel business intelligence tool looks like in real life and how it will provide actionable insights at your fingertips. In this demo webinar, the Otelier team takes a deep dive into our innovative business intelligence solution, IntelliSight.
See how IntellSight centralizes data across your hospitality enterprise and provides automated reports and dynamic visualizations to help you run a smarter hospitality business. Learn how you can give stakeholders across all departments the real-time analytics they need to make more informed decisions that drive revenue.
This video covers:
- How to uncover and interpret trends in the hospitality industry through the power of data-driven insights.
- How user-friendly tools allow you to build tailored reports for your specific needs and preferences.
- How modern dashboards and visualizations make complex data easy to understand, allowing hoteliers to make informed decisions quickly and efficiently.
