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Using BI - A boon to Hospitality Industry
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Using BI - A boon to Hospitality Industry

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BI helps to profile guest and business segments by any combination of criteria through easy point-and-click steps. …

BI helps to profile guest and business segments by any combination of criteria through easy point-and-click steps.

Sanjay Mehta, CEO, MAIA Intelligence Pvt. Ltd. authored an article for Hotelier India, February 2011

Published in Technology , Business
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  • 1. Technology Using Business Intelligence A boon to the hospitality industry, BI helps to profile guest and business segments by any combination of criteria through easy point-and-click steps O ver the past years, com- tify best guests and uncover those to determine the percentage con- panies in the hospital- with the highest potential for ad- tribution to total revenue ity industry have spent ditional nights or services. They millions on technol- can also track performanceacross Marketing Analysis ogy systems to optimise business time, guests, return rate, length • Offer products and services that processes. These disparate sys- of stay, frequency, recency, room match customer preferences With BI, tems generate enormous amounts rate, upgrades, etc. Track by divi- • Target different cross-sell and up- of transactional data in multiples. sion, product line, guest segment, sell offers based on prior purchasehospitality However, senior executives and op- booking source/channel, geog- behaviourbusinesses can erational managers are now asking raphy/property...any variable on • Determine reinvestment levels and for enterprise reports that corre- file. BI allows management to offer benefits according to customerincrease efficiency, late data from distributed systems identify challenges and opportu- value and profitenhance revenue, across multiple periods. nities.Quickly spot where busi- Single enterprise wide view be- ness or guest segments are excel- BI Usageretain customers, comes a challenge. Revenue man- ling or under-performing. They • Analyse hotel’s arrival patternsconsolidate agement is dynamic and constantly can monitor changes and easily • Look at the bookings history for changing. The pricing optimisa- drill down to see the factors driv- the travel agents including informa-businesses, tion and forecasting strategies are ing this performance. tion on booking sources, rates, andimprove complex and difficult. There is also From hotel and revenue manage- length-of-stay patterns a tremendous challenge in meet- ment BI can be used throughout the • Use the length-of-stay pattern in-productivity, and ing customers’ expectations and enterprise (front, middle and back formation to understand any nega-lower operating preferences. Apart from that there office operations) including hotel tive effects that minimum length- is constant pressure of capturing, revenue management, POS, and of-stay restrictions may be havingcosts analysing, and creating the right CMS systems for patrons’ worth on your business message/offer using the right me- and profitability, guest satisfaction, • Responsible discounting to re- dium and at the right time. market analytics, customer segmen- Organisations in the hospitality tation, and campaign management. industry can use Business Intel- With BI, hospitality businesses BI empowers business ligence (BI)to protect its market can increase efficiency, enhance users and decision makers of the Hospitality share, identify unproductive rate revenue, retain customers, consoli- business to strategies, uncover new revenue date businesses, improve productiv- opportunities or beat the compe- ity, and lower operating costs. • Increase RevPAR (Revenue per tition. Dynamic MIS and ad-hoc available room) and customer profitability reports from BI help understand Hotel Operations • Measure and predict guest current market position, illumi- • Manage revenue and understand lifetime value nate future performance trends price optimisation trending • Understand guest behaviour, and compile detailed picture of • Analyse room maintenance and trends and travel needs competitive environment (who is inventory allocation, food, and bev- • Increase share of wallet for travelling and from where), etc. erage controls loyalty members BI helps business in hospitality to • Accurately forecast group and transient demand and establish profile guest and business segments Financial Analysis rate and availability controls by any combination of criteria • Determine long term value of • Develop price optimisation through easy point-and-click steps. customer segments with BI models Easily break out, analyse and com- • Track performance of venues • Optimise usage and schedulingSanjay Mehta is CEO of MAIA pare these segments on demograph- such as room bookings, dining, of resourcesIntelligence Pvt. Ltd. ics, stay patterns, etc. They can iden- entertainment, and retail outlets,64 | February 2011 | Hotelier India www.hotelierindia.com
  • 2. Technologyspond to market conditions instead segment by rate plan, or cor- • Grow the Top and Bottom Line - Provide Complex Reports forof blindly following panic rate cuts porate account by sales manager Tighter control of KPI will enable Ad-hoc Analytics:• For example, in corporate • Drill down to details to uncover the operation to decrease costs and For most organisations, predict-business: trends and relationships, increase revenue ing customer attrition or revenue • Will reducing a rate result in understand anomalies, and in- • Improve operations and busi- is a process of single dimensional increased room nights? vestigate lost opportunities ness processes related to revenue reporting, internal knowledge and • Or will it simply dilute revenue? • Create your own interactive generation, customer satisfaction/ gut business instinct. With BI, you • Does the company have the reports and charts retention, cross-selling opportunit- can make an informed manage- volume to offset the rate de- ies, room inventory management ment decision and know how to crease? • Act on the intelligence and and new market opportunities maximise revenue and enhance • Mine the agencies that have leverage your knowledge BI helps eliminate a plethora of guest services highest room night volume or • Respond to demand fluctu- manually managed spreadsheets analyse dealers who have ations early on by stopping its proliferation, which Who gets what? provided no reservations to • Discover and seize opportun- leads to multiple versions of key Property GMs can receive audit- your specific property ities before they are gone indicators. BI helps pre-deliver stand- ed performance data and labour• Consider day-of-week (DOW) • Optimize marketing funds by ard reports, automating the pro- numbers once each day. Regionalpatterns with drill down to targeting the likely responders cess and ensuring accuracy of the controllers may have a customisedunderstand weekend-only • Reward your most profitable data for a measurable decrease in daily flash reports emailed firststays, peak nights, lowest days, customers to ensure repeat cost and increase in productivity. thing each morning. Revenueweekday stays, and arrivals Sunday business managers can get property per-through Wednesday Remove Resource formance data weekly. Investors• Monitor future patterns and Advantages of BI for Hos- Constraints in IT: may opt to receive property or en-pace, which lets you understand pitality Industry: Customised reports and data ex- tity performance every morning inthe impact of current revenue • Monitor performance with dif- ports from one or multiple systems their mailbox. Asset managers canmanagement strategies on future ferent criteria drains the resources of IT depart- have property-group flash, laborbookings and measure the ef- • Identify and get insights into ment, and it can result in a wait- data and P/L output delivered infectiveness of pricing changes weaker units for corrective meas- ing game as IT prioritises which the form of a colour coded KPIs inon market share ures requests to fulfill. In contrast, BI their dashboard daily. All the busi- • Analyse data by time, product, multi-dimensional reportsput ness users across the hospitalityWhat’s happening, why it’s category, region and unit data directly in the hands of the business get their share of BI re-happening and what’s go- • Help design special promotion user, allowing each department ports and analysis with either theing to happen (the trend) and campaign and evaluate per- to create made-to-order reports KPIs displayed on the dashboarddetermine what you want to formance output without the assistance of IT. or the alert in the mailbox. HIhappen. • Cultivate loyalty amongst cus-Hospitality business can stay tomer by analyzing customer be-ahead with timely action based on haviors and developing customerthe meaningful information profilingprovided by the BI. • Identify potential properties for• Get accurate insights from BI acquisitiondashboards and also • Self-served ad hoc querying andunderstand why business intelligence reporting tool • Analyse period-to-date figures, for end users to assess their role in year-over-year changes, and success budget variances • Top management can consolidate • Compare property sales with data from different spheres and get those of other properties, brands, single and simple view of complex chains, and regions financial metrics • Identify high yielding market • Save Time - Stay connected to your segments, rate plans, and busi- businesses and reduce the time to ness sources action by spending less time gather- • Analyse effectiveness of mar- ing information and more time on keting campaigns, promotions improving performances and package plans • Enhance Communication - • Identify most/least profitable Provide 360 degree insight into guests, corporate accounts, and operation and share data across travel agents the organisation. Improve speed and quality of decision-making,• Pinpoint the facts with enabling rapid delivery of intelli-flexible analytics gent, relevant information to key • Perform ad-hoc analysis with decision-makers in organisation the ease of drag-and-drop • Better Decisions - Quickly and • Measure impact of various easily identify strengths or business drivers with multi-per- weaknesses and make proactive spective analysis, such as market business decisionswww.hotelierindia.com Hotelier India | February 2011 | 65