Metrics that Matter: All the Key Hotel Data Points You Need

As data becomes more and more accessible in the hospitality industry, it is taking on an increasingly critical role in daily hotel operations. From owners and operators to general managers and housekeeping directors, teams across the entire company are now relying on data to make more informed decisions. 

And the types of data available are changing too. While historical data was once the only indicator for understanding performance, new forward-looking data sets and automated analysis of that data are paving new paths forward. We’ve moved beyond simple daily reports to systems that predict and prescribe actionable steps. As technology advances, the ability to interact with data in real time and receive actionable insights will become a standard expectation. 

For hoteliers, the key is to embrace these tools and integrate them into daily operations. Nearly 75% of hoteliers report using some form of data analytics to drive decision-making processes, according to a recent Hospitality Technology study. Whether it’s forecasting demand, optimizing labor, or responding to unexpected changes, leveraging the right data at the right time can drive success and profitability.  

Let’s explore the key “buckets” of data that matter to hoteliers on a daily basis and how leveraging them effectively can enhance operations and profitability. 

The Foundation: Descriptive Data 

For decades, descriptive data has been the cornerstone of hotel management. This type of data – often called historical data – gives us a quick glance at yesterday’s performance as well as a look back at similar time periods for comparison. 

• Daily Revenue Reports: These are a must-have for hoteliers. Known by various names, these reports provide a snapshot of the previous day’s performance. They include metrics like revenue, occupancy, Average Daily Rate, and Revenue per Available Room). Owners and operators alike rely on these reports to gauge whether the hotel “won or lost” the previous day. 

• Historical Comparisons: Many hoteliers also compare yesterday’s performance to the same day last week or last year, offering insights into trends and anomalies. 

• Additional Business Insights: Modern business intelligence solutions like Otelier IntelliSight will centralize additional descriptive data points from various systems and departments across your portfolio, such as expense data that helps track P&L KPIs, pickup analysis, and competitive set benchmarking data. For a comprehensive list, see “13 KPIs a Hotel Business Intelligence Tool Will Help You Track.”  

Descriptive data is critical because it addresses the perishability of hotel inventory. Knowing daily performance is essential to ensuring today’s strategies are on track. 

Looking Ahead: Predictive Data 

While descriptive data tells you what happened, predictive data looks to the future. It helps hoteliers answer questions like, “What’s likely to happen this week or next month?” 

• Forecasting Demand: Predictive data uses historical patterns, booking trends, and external factors (local events, holidays, flight demand data) to forecast occupancy and revenue. This enables hoteliers to prepare for peak demand periods or identify soft spots that may need additional promotions or rate adjustments. 

• Adjusting Labor Strategies: For example, if predictive data shows a sudden group booking or a cancellation, hoteliers can adjust staffing levels to avoid overstaffing or underpreparing. 

Predictive data empowers hotels to stay one step ahead, ensuring they allocate resources efficiently and maximize revenue opportunities. 

Taking Action: Prescriptive Data 

Prescriptive data is the game-changer. It goes beyond predicting outcomes and provides actionable recommendations. It answers the critical question: “What should I do today to improve tomorrow’s results?” 

• Automated Recommendations: Today's systems should not only alert you to a sudden spike in cancellations, for example, but also suggest how to adjust pricing or marketing strategies to offset the loss. This level of insight saves time and reduces guesswork. 

• Dynamic Labor Scheduling: Prescriptive tools can suggest adding or removing shifts based on anticipated occupancy, ensuring optimal service levels while controlling labor costs. 

As technology advances, prescriptive data systems will become increasingly intuitive, allowing hoteliers to make faster, more informed decisions. 

From Static Reports to Conversations with Hotel Data 

One of the most exciting trends in the hospitality industry is the shift from static reports to systems that provide interactive data analysis. Soon, hoteliers may not rely on traditional charts and graphs at all; instead, they’ll engage in dynamic conversations with their data, according to Lex Raleigh, Distinguished Architect at Otelier. 

Beyond answering questions, advanced systems will recommend next steps. Imagine asking your system, “What caused yesterday’s revenue dip?” and receiving a detailed explanation, complete with visualizations and actionable insights. Instead of a graph showing declining local demand, the system might suggest, “Launch a targeted promotion to local drive markets.”  

AI tools are evolving to interpret questions, pull relevant data, and provide context. This capability opens up BI to a broader audience, eliminating the need for specialized data analysts. This shift will democratize data, making it accessible to all team members, from general managers to housekeeping staff, and fostering a culture of data-driven decision-making. 

This streamlined approach not only saves time but also ensures that hoteliers focus on what truly matters – maximizing profitability while delivering exceptional guest experiences.