Hotel room revenue management has come a long way, and now it’s time to take those learnings and apply them in other revenue-generating areas, such as food and beverage, spa, and golf. Data is the key. By centralizing data from across the systems that power these departments, hoteliers can gain a clear view of performance metrics, guest behavior, and revenue trends, enabling them to make smarter decisions to drive total profitability.
In a recent webinar, Otelier demonstrated how IntelliSight enables operators to analyze detailed data from multiple sources across their hotel or resort, turning insights into actions that drive profitability. Watch the full webinar here, or read a recap below.
Optimizing Spa Revenue with Dynamic Pricing and Analysis
The spa represents a significant ancillary revenue stream for many hotels and resorts. However, optimizing this outlet often requires more than just offering top-notch services—it demands data-driven decision-making. Otelier IntelliSight equips spa managers with insights into guest spending patterns, therapist performance, and peak booking times, enabling proactive strategies that drive top and bottom line performance.
Key strategies to increase Spa Department profitability:
- Dynamic Pricing Based on Demand. Static pricing limits revenue potential, especially during high-demand periods, like Saturday afternoons. Spa managers can use heat maps to identify peak times and adjust pricing dynamically to capitalize on demand. By treating spa treatment rooms as perishable inventory, akin to hotel rooms or airline seats, managers can ensure maximum profitability.
- Therapist Performance Dashboards. Tracking individual therapist contributions to revenue and retail sales can be labor-intensive. IntelliSight's Therapist Summary Dashboard enables managers to monitor treatment volumes, upselling effectiveness, and overall contribution by therapist. For instance, tracking retail upsells during treatments can identify top performers and inform training programs.
- Treatment Trend Analysis. Identifying which treatments drive revenue and their busiest times can be cumbersome. Analyze treatment popularity, revenue contribution, and future bookings. For example, the 90-minute massage that generates significant annual revenue indicates a clear demand to focus marketing and staffing efforts.
Driving Golf Department Profitability Through Data Insights
Golf departments are another critical ancillary revenue source, often requiring granular analysis to optimize operations. IntelliSight’s golf dashboards provide actionable data on tee-time utilization, guest segments, and revenue pacing, enabling resorts to make data-backed decisions.
Key strategies to increase Golf Department profitability:
- Tee-Time Utilization and Dynamic Pricing. Underutilized tee times on weekdays lead to revenue gaps, while prime weekend slots may not be priced to reflect demand. Analyze tee-time heat maps to identify underperforming periods and adjust rates dynamically. For instance, increasing rates for Saturday morning tee times while offering discounts for slower Monday afternoons can balance utilization and revenue.
- Revenue and Booking Pace Analysis. Understanding how bookings are pacing relative to the same period last year is essential for forecasting. IntelliSight’s on-the-books analysis tracks daily booking trends, allowing operators to spot shifts in guest behavior and adjust marketing or pricing strategies accordingly. Resorts hosting PGA events, for example, can leverage historical data for planning future pricing strategies.
- Segmentation of Golf Guests. Differentiating between in-house guests, local members, and external visitors is critical for tailored strategies. Use segment analysis to reveal guest profiles and revenue contributions. For example, in-house guests may represent 52% of golf revenue, informing targeted promotions to convert more transient visitors into golfers.
The Role of Business Intelligence in Optimizing Hotel Operations
A standout feature of IntelliSight is its ability to consolidate data from multiple systems, providing both high-level overviews for executives and detailed insights for departmental leaders. This holistic approach ensures every team has the tools they need to measure success effectively.
For example, Brittain Resorts and Hotels selected Otelier IntelliSight to centralize data for their portfolio of 17 properties in and around Myrtle Beach. IntelliSight has automated the manually process of collecting data from the PMS, accounting, payroll, and POS systems each day, saving hours of time each day, and compiling data into 20 daily reports and a few weekly and monthly cadences.
Important Metrics IntelliSight Will Help You Track:
- Capture Ratio: Compare in-house guest counts with spa or golf utilization rates to measure success in converting hotel guests into ancillary revenue.
- Retail and Upsell Performance: Monitor upsell conversion rates for therapists and pro shop employees to identify top performers.
- Revenue Pace vs. Last Year: Analyze whether revenue trends are improving year over year to inform operational adjustments.
As hotel and resort operators look to transform their ancillary revenue strategies, adopting robust software like IntelliSight will unlock insights that drive dynamic pricing, optimize department performance, and ultimately, boost profitability.
Talk with us to learn more about how Otelier’s hospitality platform will unlock actionable analytics at your hotel or resort.