The hospitality sector is highly competitive. The competition is increasing daily in the industry. Senior hotel management looks for different tools, which offer a helping hand to them in seeking a competitive edge. Hotels give priority to data analytics to seek competitive benefits. Text analytics is known to have a symbiotic relationship with Revenue Management. Efficient implementation and use of Text Analytics solutions lead to consistent growth in the revenue and occupancy of hotels.
- Pricing Decision
- Booking Patterns
- Channel Management
- Data Segregation
- Inventory
- Product Launch
- Promotion
1. Pricing decision
Pricing happens to be a crucial factor, which offers a helping hand in determining if the room is sold. It is useful in determining whether the hotel will be capable of making profits from the sale. If a room is sold underpriced, there are risks that there might be a loss in revenue. It will also help if you keep in mind that it might be unsold if the room is overpriced. Speaking of data analytics, revenue managers will look at different past patterns than other competitors’ present pricing patterns.
After this, you should look at the ideal room and fix the price for every hotel category. It allows the hotel to react to various demand fluctuations timely.
2. Booking patterns
Text analytics are useful in recognizing different booking patterns for every room category of the hotel. Please remember that such practices include understanding the demand for every room type, depending on the pricing, market segment, specific time of the year, and regions. It is also useful for forecasting occupancy. In addition to this, it offers a helping hand in designing different pricing strategies.
3. Channel Management
It is another crucial part of revenue management. By choosing a text analytics partner, it is possible for the hotel management to understand the performing channels. In addition to this, the channel management has the ability to identify the region in which the bookings will come from. Besides this, channel management allows the hotel to recognize the specific category of room that is sold on various channels.
Besides this, it helps you in measuring the booking pace of every channel and booking seasonality. The analysis of the details mentioned above will also be useful in determining the marketing objectives of every channel. Also, the information is helpful in the derivation of maximum profits from every channel. Such information is effective in understanding if the specific marketing efforts are useful for a particular channel.
Also Read: How Data Analytics is Fueling the Future of the Retail Industry?
4. Data segregation
A hotel produces massive data amounts every day. However, it is not necessary to analyze the generated data. To ensure the effectiveness of data visualization and text analytics, it is a prerequisite to process the appropriate data amount. Implementation of the right practices is useful to the hotel for the improvement of different data collection procedures. It provides a suitable choice for the revenue management team to confer various reports timely. It helps the revenue management team to make the decisions accurately and adequately.
5. Inventory
Efficient inventory management happens to be an ideal choice for the implementation of revenue management. Text analytics offers a suitable option for understanding the impact of sales with data from different product demands, past transactions, and the supply chain. As the whole supply chain is tracked accurately from the order through various distribution centers, data analytics solutions recommend different optimal procurement policies, which would be useful in stocking other profitable products that boast high performance.
Text analytics also recommends different assorted products, which contribute to being the combination of merchandise suitable for the customers. In addition to this, it offers alerts on another replenishment status. Besides this, it provides a helping hand in the tackling of other cancellation looms.
6. Product launch
To make product launches more successful, it is a must for a different business organization to understand varying market segments and the prerequisite targeted audience. Apart from this, text analytics provides market research data of 360-degree analysis, which is inclusive of market size, different homogenized target groups, the product scope across various segments, accessibility to the customers, and quantified results of various product launches.
Such in-depth research findings allow the businesses on the Revenue Management System to make an informed decision for launching the latest products in the market with the prerequisite confidence.
Promotion
With Text Analytics, businesses will identify different targeted audiences with the application of different strategies, such as bundling, marketing mix, and fantastic customer segmentation. Deep insights from the wallet analysis share, online shopping patterns of the potential audience, purchase value, offline and online visit frequency, and current purchase history offer unique promotion ideas.
Businesses provide different personalized promotions, recommend seasonal demand, and additional cross-sell value for the potential audience in real-time. It will help if you keep in mind that promotions should be a fair agreement between the profit margin and sales volume.
