There’s a real-time revolution happening in hotel operations

As
the world emerges from the pandemic, the hotel
industry faces new challenges and opportunities. Data has long been used to
help make operating decisions but real-time data is the beating
heart through which forward-looking plans flow. It allows hoteliers to maximize
profits while also optimizing business delivery and continuously
improving guest experiences.

Hotel operators today have unparalleled access to
real-time and forecast data. Once a system is in place to bring together
operational, labor and revenue data, a new kind of decision making can happen.
When every system is connected and leadership can look at the operation
holistically, they can respond to the precise situations that unfold each day
(because they are more easily anticipated).

By examining how the
hotel’s operations function in their current state, all the micro-decisions
that contribute to optimizing overall performance can be improved.
Simply put, this can result in higher profitability and enhanced guest
experience.

This article is a preview of the full Phocuswright report Real-Time Revolution in Hotel
Operations, that explores various real-time, data-centric approaches that can
be used to achieve these goals, focusing on how the following five operational
areas can be optimized:  

• Labor scheduling and
  staffing  
• Team member
  performance  
• Sales data for trends  
• Operational function
  automation  
• Ancillary revenue
  from guest behavior data 

Using data to inform
labor scheduling and staffing decisions 

Given the heightened
challenges of finding and managing a workforce in the post-pandemic era, one of
the most impactful data applications is in labor scheduling and staffing
decisions.

Staffing should be
approached based on specific daily demand, projected through business intelligence and forecasting tools. This means:  

• Daily scheduling to
  different day-parts based on when available staff can
  work  
• Overnight cleans
  through cleaning agencies or contract labor  
• Rolling rooms (e.g.,
  not cleaning dirty rooms) on days when that evening will not have a sell-out  

By using data to
inform these micro-decisions, hotels can optimize their labor costs while still providing high-quality service to their guests. 

Analyzing team member performance data 

In addition to using
data to inform labor scheduling and staffing decisions, hotels can also use
data to analyze team member performance. Real-time performance means that an
operator can intervene before small problems become bigger systemic issues. It
also allows operators to spot good trends early and double down.

Pairing tried and
true data with real-time data can help hotel operators identify new micro-areas to improve their
operations and reduce costs. Get the full report to see the top productivity
benchmarks to address, from a macro, full-hotel level, to a micro role-level. 

Using sales pace and
sales leader performance data to identify market-wide trends 

Another area where
live data can be useful is in sales pace and sales leader performance. By
analyzing market-wide trends and individual performance, hotels can react in
real time to pace trends by increasing group pricing and length of stay
restrictions or making operational business changes if they are performing behind target. Hotels can benchmark or
compare performance of sales team members, and
management groups can benchmark performance of hotels within their portfolio in
a market. 

Identifying operational functions that can be
automated 

Another benefit of
using operational data is identifying tasks that can be automated, or
opportunities to augment team member efforts. This could lead to both cost
savings and freeing up team members to deliver more personalized services.
Software, AI, virtual team member support and robot support are all platforms
to consider. 

Implementing new technology is hard but testing out “what
if” scenarios on a few shifts and seeing if in real time the desired impact
happens makes it easier.

Predicting ancillary revenue sources by evaluating guest behavior
patterns 

Another way that data can help maximize profits is by
predicting new ancillary revenue sources by evaluating changing guest behavior
patterns for each market where hotels operate. With the rise of conversational
interactions within hotel chat, a new kind of unstructured data is available.
Aggregating guest request types can flag specific sales opportunities for a
hotel.

Developing a program for and selling these services, versus reacting ad-hoc is
a revenue opportunity.

Additionally, hotels should take a macro approach to
evaluate pre-stay conversations with guests. What are top questions, requests
and concerns? To maximize profits, hotels can consider how to turn external
requests or concerns into direct revenue solutions. At a bare minimum, an
operational process should be in place to pull daily “free form” field requests
in reservation bookings and task management software.   

Conclusion and recommendations 

Real-time data analysis is becoming increasingly important
for hotels looking to optimize their performance and maximize profits. By using
real-time data to inform micro-decisions, hotels can increase efficiency, cut
costs, and improve guest satisfaction. From scheduling and staffing to
automated systems and ancillary revenue sources, data can inform decisions that
improve overall performance.

As we adapt to changing travel patterns, challenges in the
labor market and inflationary pressures, the productive use of data will become
critical to remain competitive. Embracing a data-centric approach using systems
that synthesize all available data may require investment in new technology and
training for staff. Nevertheless, the benefits in terms of increased revenue
and improved guest experiences make it a worthwhile investment for hotels of
all sizes.