Few industries have been equally transformed by technology as the hospitality industry. The business models for airlines and accommodations have been particularly affected. Where people used to depend on travel agencies and in-person ticket agents, travel can now be booked entirely through the internet without needing to speak or interact with a single person.
This has seriously affected travel agencies and other middlemen who depended on the old way of doing things for their livelihood. However, it also highlights the need for the industry and all its players to quickly adapt lest they be left behind in obscurity and irrelevance.
One of the key ways in which the hospitality industry can keep evolving with the times is through advanced analytics in revenue technology.
How Can Advanced Analytics Generate Revenue for the Hospitality Industry?
Technology has the power to transform a business and take it to new heights. When done right, it can be an efficient and reliable revenue generator.
Analytics and big data allow companies to access and utilize information in ways that weren’t possible until recently. They’ve empowered the hospitality industry to keep track and adjust to ever-changing market changes and trends. Past and ongoing user behavior can be collected, compiled, and analyzed to predict future outcomes.
This has far-reaching effects on the hospitality industry. Advanced analytics can provide you with multiple efficiencies and extraordinary insights across operations: from the most profitable products to when consumers are most likely to buy, to managing your inventory, and managing check-ins and check-outs efficiently — the list goes on.
Revenue Generation and Analytics
Analytics help businesses predict the nature and levels of demand in the near future. With data gathered in person as well as through artificial intelligence, there are many opportunities for optimizing revenue generation through analytics.
In any industry, knowledge is key. Your ability to adjust and evolve based on market data and consumer behavior is essential for survival and growth. Therefore, revenue generation is hugely dependent on these analytical techniques:
HR analytics is used to improve HR processes. You can use it to reduce employee turnover and improve retention. Data collected for this purpose will help you pinpoint employees who are more likely to leave your organization in the near future and help you hang on to high performers you’d like to keep.
Big Data Analytics
Big data is one of the most useful components in revenue generation. It is used to extract meaningful insights and hidden patterns. Big data is useful in decision-making that leads to increased revenue, targeted marketing strategies, and boosting user experience and satisfaction.
In the hospitality industry, the ability to predict future demands and trends is extremely crucial. Customer statistics and modeling is used to determine a course of action. Statistical algorithms, data, and machine learning based on historical data are used to predict future outcomes.
Data analytics is a significantly new concept in the hospitality industry. Because of its huge potential, the industry needs to keep up with it in a bid to manage inventory, pricing structure, and build consumer loyalty along the way.
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