Using analytics to boost revenue and meet customer demands in the hospitality sector

With competition in the sector reaching an all-time high, today’s hospitality professionals are searching for a way to stand out. One of the most effective ways to revolutionize customer experiences isthe use of data analytics. By leveraging analytics to create personalized marketing options and determine customer needs, hospitality professionals can optimize both revenue and client satisfaction. With that in mind, this article will explore how crunching data can lead to happier visitors and better profits.                                  

Preferences

One of the main ways that businesses leverage analytics in the hospitality sector is by analyzing customer data to determine trends and preferences. These change yeartoyear and play a huge role in customer satisfaction and return rates. When used properly, this kind of analytics can help businesses determine what parts of a customer’s visit impact on their overall satisfaction and make them more (or less) likely to return.

Say that you have 100 customers, and you collect data from each about their stay as well as how many times they’ve visited the hotel in the past or intend to visit in the future. From those 100 people, you can get a pretty good idea of where you should invest money and where you can save. Indoor pools are often popular gathering spots, while outdoor picnic areas might be relatively less so. By taking the time to understand user preferences, businesses can create marketing strategies tailored to customer preferences and, in turn, optimize both the money made and money spent to improve the business.

Potential demand

Are you seeing more or fewer customers this year than you did last year? What does this mean for your overall profit and how can you attract more visitors? Data analytics can help you determine all of this and more. Raw data can be analyzed to predict business demand both presently and, in the future, as well as to examine how current trends are different from past trends. Businesses with this knowledge are better poised to grow and adapt to fluctuating customer demands.

Think about the last time you had an unusually busy season. Did you wish you could have foreseen the boom in customers so that you could prepare in advance? Most hospitality professionals understand exactly what you are going through and share this experience. Analytics can help avoid unexpected rushes of customers so that your business is one step ahead of the flood.

Personalized offers

So far, we’ve discussed how analytics can be used to create a better experience for customers at large. Did you know that you can also use analytics to target specific groups of customers and potentially increase their likelihood of visiting? Personalized offersare offers informed by the information gleaned from data analytics. Let’s look at an example.

Let’s say that your business has a few specific ongoing offers. One of them is a certain percentage off larger rooms. While this offer might be great for families traveling with children, it is less effective at enticing solo travelers. By using analytics, you can better identify potential customers and predict their preferences and needs. You can then use that information to create personalized marketing offers tailored directly to their preferences.

Pain points and customer service

Where do visitors run into less-than-stellar experiences at your business? Understanding where weaknesses exist is an important step to optimize customer satisfaction (and, in turn, your profits). More specifically, removing obstacles from your client’s stay – whether that means optimizing check-in/check-out, reassigning housekeeping or pushing dining service – can help you maximize the money you bring in. Analytics can help here by identifying trends in customer complaints or lesser-utilized amenities. Understanding where the problems lie is the first step to creating spaces that increase customer satisfaction.

Once you’ve optimized the amount of funds that each customer gives you, you can apply advanced financial techniques to make the most of it. James Vosotas is a finance professional offering business owner just like you tips to help increase the money you earn and spend. Analytics help improve customer flow and encourage return stays.

Are you interested in revolutionizing the way that you do business in the hospitality sector? If so, you’ve found the right place! Keep our tips in mind as you research how analytics can help improve your business. With just a bit of knowledge and know-how, you can personalize the offers you send to potential customers and optimize the revenue you earn.