Recently the Analytic Hospitality Executive has been exploring the possibilities of integrating departmental analytics. We have examined how the marketing, revenue management and service operations departments of hospitality companies can make use of the analytic outputs of other departments to improve their results. Much of this has been based on our vision for the future of analytics within the hospitality industry, however, I am also happy to say that we see plenty of evidence of the closer integration of analytics out in the industry.
Recent market trends indicate that hospitality and gaming companies are profiting from tightened integration between departments when it comes to analytics. Marketing and revenue management are a natural place to start, because they are usually the most analytically sophisticated departments. In a recent interview with Eye for Travel, Eoin Furlong, Senior Director Revenue Management Analysis and Support at Hilton Hotels talks about how useful some traditional marketing analytics are to the revenue manager. Eoin highlights just some of the analytics that revenue managers are starting to use from marketing, such as propensity to cross sell and upsell.
Most predictions for the future of revenue management identify a closer alignment with marketing. In an article on total revenue management in Hospitality Upgrade, Bonnie Buckheister paints an integrated future for revenue management and marketing by the year 2020. Bonnie predicts that the new revenue manager or what she calls a “demand/profit optimization manager” will be fully versed in analytics that have been traditionally under the oversight of marketing, such web analytics, social media metrics and digital marketing performance measurements. If you have attended any hospitality revenue management or marketing conference lately you will have heard similar themes, and even attended sessions around integrated revenue management and marketing.
Craig Eister, Senior Vice President, Global Revenue Management and Systems at InterContinental Hotels Group elaborated on the how integrating analytics across departments can drive better strategic results in his discussion with Lee Ann Dietz on strategic pricing in the real world. Craig explained that “…we know now that revenue management can be a lot more about how to influence strategic decision-making at your company, whether it be marketing, or sales, or brand-based decisions.”
Social media is another area where departmental analytics can happily and productively collide. In her post giving an update on social media analytics for hospitality, Kelly highlighted that it has become very clear that social media data has value beyond the marketing department and customer engagement strategies. She explains that insight from user generated content can inform operational initiatives, guide new product or service development, assist in competitive positioning and, even influence pricing strategies. Adding to the amount of data and the complexity of the analysis, is the challenge of providing access to the right data in the right format to any user that could benefit anywhere within a hospitality organization.
Speaking of social media as an influence on decision marking – next week Kelly McGuire will share with you the results of research that she and Breffni Noone, Associate Professor, The Pennsylvania State University conducted into how consumers trade-off attributes including user-generated content (UGC), or ratings and reviews, and quality and value perceptions of hotel room purchases with price. Check back in with the Analytic Hospitality Executive next week to read the results.