5 Hotel Data Strategies To Grow Your Business

By: Kannan Venkatesh - Nov 03, 2019


Hotel industry provides services like lodging and food for guests. Although it looks simple, the hotel managements are facing many problems daily to satisfy their guests. Strategies using data analytics will helps us to solve few major problems listed below.

Revenue Management:

Revenue management is the application of analytics. It helps to optimize the product production and maximizes the revenue. It predicts the right product to the right customer at the right time. Data analysts will monitor management's activities using several KPI metrics to understand and recommend strategies, in order to run a successful business. The few key performance revenue management indicators are:


It is defined as the proportion of number of rooms occupied from the total available rooms in hotel.


Average Daily Rate or ADR metric tell us that the average rate the rooms earn per day/month.

Length of Stay:

This indicator will provide that average no of days the guest will stay in the specific type of rooms. 

Direct Revenue Rate:

This metric measures the percentage of guest checking in directly versus, via expensive third-party channels.

Performance Evaluation:

While doing Exploratory Data Analysis, using operational data will help us monitor and optimize the performance of each function in the hotel. By reporting it as a visualization, management can track rooms, events, and referrals. Even employee tracking becomes possible to find how their respective job impacts the organization. Also, it will solve management's decision-making problems. 

Brand Monitoring:

Customers can easily damage the brand value of any organization. The same is applicable if people are not satisfied with the hotel service. They write negative reviews online, which have the super power of making people decide whether to visit the hotel or not. Keeping this in mind, data analysts use customer feedback data to find the problems faced by them and define them so that the management can optimize their services and solve the problems. 

Competition Analysis:

In today's world there are some websites where we can collect the customer feedback of every hotel and we can also collect it from their own website. By using those data we can easily analyse the competitors' strategy in each of their departments. We can also smell the people's mind through their reviews, understand who their customers are and what they think about perfect guest experience. By implementing Competitive analysis model we can compare ourselves with our competitors from various dimensions.

Marketing Analytics and ROI:

Every hotel is spending money on both ground level marketing and digital marketing. But only few marketing strategies will impact the business. Rest of the activities give only negligible influence and usually leads to waste of money. By using Data analytics one can track, measure, and quantify marketing spends. Marketing is more important than other decisions taken by the management. We can track marketing spend against other revenue and operational KPIs which can estimate which strategies have and haven’t work. Eventually, we can decide where to continue to invest. 

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