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How is Analytics transforming the Hospitality Industry?

  • Neelam Tyagi
  • May 29, 2020
How is Analytics transforming the Hospitality Industry? title banner

When the proper technology and architecture is selected to initiate, throw out the problem of data silos, technology enables your data to speak and work for you. It is the high time when data can be elucidated, which is also admitted as Data Analytics.   


Hospitality industry that includes hotels and other companies is griping the concept of data and analytics and adopting plentiful ways that can help in generating huge revenue and give better customer experience. 


“Motivate them, train them, care about them, and make winners out of them… they’ll treat the customers right. And if customers are treated right, they’ll come back.” — J. Willard Marriott, founder of the Marriott Corporation


In this blog, you will find out the actual picture, undeniable benefits, and numerous ways with respect to various kinds of analytics and strategies that can be leveraged for the augmented performance of hotels, resorts, and other hospitality companies.



How would you describe the Hospitality Industry?


Hospitality is the service industry that builds on the integrity and services it offers.  Varied businesses that belong to it stretched from hotels and restaurants to the tourism and transportation sector.  


In terms of the Revfine, “The hospitality industry is generally recognized as a section of the wider service industry, with a focus on leisure, rather than more basic needs. 


More specifically, recommending you the video from study.com that describes the hospitality industry as a broad group of businesses that provides services to customers. 


Let’s try to understand through a simple picture, suppose a hotel has 60 rooms that offer 21,900 (applying maths here) room stays to advertise in a year, now money is invented to make and maintain all rooms throughout the year, despite that any room remains vacant reduces occupancy and hence revenue lost. Therefore, maximum efforts are made to auction the exceedingly in order to make the most. 


Inspecting the trends emerged (from data visualization) from how the markets shifted is touchy measurements to make not only to trade goods but also to inflate profits, understanding demands, and market trends. It demands a huge amount of appropriate data that would be transformed and deciphered in order to interpret trends. 


And hence, similar to other industries, data analytics is implemented in the hospitality industry that’s what we discuss in the coming sections. 


If we put simply, the hospitality industry reflects diversified businesses and services associated with convenience and customer satisfaction. It concentrates on a belief of extravagance, gratification, and experiences, as opposed to catering for requirements and essentials.



Benefits of the Hospitality Analytics: Data that Makes Hotels Smarter


Whether the technology or the methodology is used in the hospitality industry, the core agenda is to revamp business operations, marketing game plan, retention rates, and yield. Today, the companies and hotels that exist in the hospitality industry are realizing the importance of analytics. 


For instance, The PMS companies are choosing advanced analytics for their solutions whereas minor companies in the hospitality industry are approaching additional apps by forums in order to embellish their operational systems, whichever existed. Analytics can help in the following fashion;


  1. Analytics can avail the hoteliers to trim their energy costs beyond forfeiting the comfort of guests.

  2. It lets the reservation administration forecast the optimized rate for the available space.

Displaying the multiple benefits of hospitality Analytics.

Benefits of the Hospitality Analytics

  1. The sales and marketing team could draft and drop custom-fit information over several networks.

  2. Restaurant authorities can express outcomes which menu items are expected to offer on the basis of some factors like local weather (read our blog on weather forecasting), availability of stock, region, and visiting hours of customers, etc.

  3. Janitors can get to know which local tours to advice that suits the visitors’ expectations on the basis of their previous visiting data. (a simple algorithm in machine learning that is “recommendation system” works here)  



How Can Various kinds of Analytics Help in the Hospitality Industry?  


According to the definition provided by IBM, data analytics is “use of advanced analytic techniques against very large, diverse data sets that include structured, semi-structured and unstructured data, from different sources, and in different sizes from terabytes to zettabytes.


In the hotel industry, analytic is often deployed to categorize visitors in particular with booking trends, behavior, and other linked factors that disclose their possibilities in responding to promotions, and emerging travel trends. 


In order to understand customer preferences (locations, activities, and room types), purchase behavior (frequency, length of stay, time of year) and profit potential that increase brand adherence, following types of analytics techniques can be adapted;  


HR Analytics:


The most valuable and lavish credit in the hospitality industry is “human resources” as the excellence of customer services and staff receptivity embrace a direct impact on the image and reputation of hotels and other companies in this industry. 


So, to remain ahead of the competition, there is a need to train, and develop such passionate, competent, and accountable employees, and recognize multiple ways to retain them engaged and motivated in order to conduct their best. 


This is where HR analytics serves, do you know the exact scenario of HR analytics, click here


Big Data Analytics:


Hotel companies are already using Big Data analytics to fulfill these objectives;



(Here I am Directing you to top big data technologies for a quick glance).

This is how top Hotel chains in the world use big data analytics to their benefits

Hotel chains big data analytics: Pic Credit

“Below is how a couple of hotel chains are implementing big data analytics to maximize profits, (in nutshell)


  • Marriott uses Group Pricing Optimiser (GPO) that operates on several price models on the basis of statistics of multiple market segments that lead to Marriott to hawk the mode a specific set of customers want to purchase.
  • Intercontinental Hotel Group (IHG) uses Operational Analytics, Advanced Analytics, and Predictive analytics in order to amuse stakeholders, to enhance customer understanding, and to substantially anticipate and get ready forthcoming future trends.” (Source)


Predictive Analytics:


“What are the ongoing trends?”, “How to figure out the correct trend to invest in?” all this information can be obtained by analyzing hospitality data via using regression and correlation analyses.


For a data-rich industry, such as traveling, predictive analytics shows an entire array of favorable circumstances and can be used for the purposes significantly;

  • Foresee trends,

  • Understand customer,

  • Augment business performance, and

  • Conduct strategies and drive decision making.





While globalization is extending, we need to maneuver and revise business strategies as attending the, even though, tiny data can impact our business automatically. Therefore, with the huge quantity of data available in the hospitality industry, all the companies are approaching the tools and solutions to make the use of most of their data. 


 “All of the razzmatazz and jazz we hear about facilities and everything else doesn’t amount to a hill of beans. It’s a customer experience that determines the longevity and endurance of these enterprises.” — Steve Wynn, founder of Wynn Resorts


Analytics can let hotels and other businesses to identify significant patterns and trends. Subsequently, it would reform business revenue, amend marketing practices, and boost the experience of customers that are being delivered.  


More or less, this is not an end of learning, for more such amazing analytics techniques follow us regularly on  Facebook, Twitter, and LinkedIn

Latest Comments

  • narentheren85

    Aug 01, 2020

    I personally like this article. It gives me a lot of information. Hope, hoteliers will benefit from this article.

  • Neelam Tyagi

    Aug 01, 2020

    Thank you