The hospitality industry, like any other, has unique data management challenges. Combine a surplus of data sources and an industry with paper-thin margins, and you’ve got a situation in which opportunities for streamlining cannot be left on the table. Any restaurateur or hotelier worth their salt already knows that they need to be tracking and analyzing hospitality data, but what’s the best practice? How can we use data to increase revenue and customer satisfaction, and effectively communicate the organization’s performance with stakeholders? How can we minimize the time required to analyze and report on that data and get back to focusing on providing the best guest experience possible?
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Before we discuss how to make best use of our data, we must understand what metrics should be tracked in the hospitality sector.
Top Key Performance Indicators for the Hospitality Industry
RevPAR: The Revenue Per Available Room is measured by the average daily room revenue generated by each available room. This number is going to vary significantly, and will change as the season, economy, and consumer trends change. Because of this, the RevPAR can be difficult to track, but is crucial to understanding the success of your business throughout any given time of year.
Use this metric to…properly prepare for the busy and non-busy times of year.
Occupancy %: If you’re in the hotel business, the most important metric is going to be your occupancy rating, which is the percentage of available rooms over a specific period of time.
Use this metric to…identify and correct problem areas.
ADR: The Average Daily Rate is another useful demand forecast as it provides insight into the average rate a room goes for on any given day of the week in any given month.
Use this metric to…leverage seasonal trends.
Online Rating: Hotels and restaurants live and die by customer reviews. Tracking your online review presence is crucial to understanding your reputation, and how it can affect your bottom line. Ratings also provide a direct line of feedback from your customers, so you can adjust expectations and services to stay ahead of the game.
Use this metric to…gain key consumer insight.
Marketing ROI: It’s important to understand how your marketing dollars relate to your sales dollars. Tracking your advertising ROI can save you from making big investments in methods that don’t yield big results. By tracking your ad spend against other KPIs like RevPAR, you’ll see which advertising methods work and which don’t.
Use this metric to…streamline marketing spend.
Labor Cost as % of Sales: Without a way to track how much you are paying out in labor versus what you are bringing in, you may routinely overstaff your restaurant or resort on slow seasons, days, or shifts. Labor is traditionally the most expensive piece of the cost puzzle, so staying on top of this KPI is crucial.
Use this metric to…make optimal staffing decisions.
Loyalty Programs: From tracking repeat customers to tracking the value of their purchases, there are several KPIs you can use to measure the success of loyalty programs. If your loyalty program isn’t meeting the goals and objectives you had for it from the outset, revamp it to be ROI driven and more enticing.
Use these metrics to…tweak and improve your loyalty program.
Read next: Defining Strategic KPIs
Using Data Visualization in the Hospitality Sector
The KPIs for the hotel industry listed above are by no means comprehensive; with so much data generated by even daily operations, there are innumerable metrics that one could track. Once you’ve identified the top KPIs for your operation, though, it’s time to cut through the clutter and make some connections.
The best data analysis software for management in hospitality should integrate multiple data sources into one easy-to-understand view. Data visualization software is an elegant solution, because it allows the user to immediately see the status of their KPIs at a glance. An interactive dashboard comprised of related charts and graphs can help management identify correlations between metrics they might not have thought to compare before. Uncovering these hidden correlations can be crucial to identifying those areas in your operation that are ripe for streamlining.
iDashboards is a comprehensive data visualization software that identifies correlations between metrics you wouldn’t think to compare. By being able to track data across all aspects of your business – from the dining room to the boardroom – you can accurately gauge the success of your operations in real time.
Additionally, iDashboards helps you to spot trends and patterns you wouldn’t have otherwise been able to see before, and to determine how you can take advantage of those insights to improve your bottom line.
In an industry that is never stagnant, data management and analysis can be a tough road to hoe. iDashboards can simplify your data reporting and bring clarity to the numerous KPIs you must measure. Every hotel and restaurant management team can benefit from the clear and concise reporting that iDashboards offer.