Hotels depend on quality data for core processes in commercial activity. Data quality is the basis for data-driven decision-making. Correct, complete, and timely data will give top management and the commercial team insights that trigger intelligent actions to improve the business.
A survey from Dun & Bradstreet shows that 94 % of companies that improved their data quality increased the return on marketing and sales activities. 100 % of companies increased profits. The results from the Dun & Bradstreet report are precise. Regardless of size, location, or industry, if organizations use quality data in clever, innovative ways, they will see positive results. The conclusion is that data quality is an essential driver of business performance. Sales and marketing teams that make data quality a priority can better align their efforts and improve performance.
The starting point is the annual budget. It is challenging to prepare a budget, and it is even more difficult without quality data. Lack of data, information, and insights leads to so much extra work that some hotels simplify or skip the budget process altogether. The lack of financial planning negatively impacts the profit.
Forecasting is critical for profits
The most critical process in a hotel is forecasting. Based on high-quality data, an accurate forecast is a base for adjusting rates, activities, scheduling, purchasing and assessing cash flow. Without a regularly and frequently updated forecast, top management and the commercial team drive the business blindfolded. Professionally managed hotel companies have realized the importance of forecasting. Unfortunately, many independent hotels and hotel groups have not yet embraced forecasting best practices.
Critical activities to recover faster
Data quality investments positively impact three other areas in hotels.
- Sales prospecting and closing
- Generating customer insights/intelligence based on analytics
- Campaign execution
Sales prospecting and closing
When data about companies, travel agents, and contacts are consistently structured, current, complete, and accurate, the prospecting will be easier and the closing rate higher. Hotels struggle with many customer profiles, often duplicates, in the PMS, making it time-consuming and challenging to analyze sales data.
Generating customer insights
Hotels collect a substantial amount of data about each guest reservation and use this data to create on-demand, digital and personalized experiences. Marketing, sales, and revenue can use this data to gain insights into consumer behavior and willingness to pay. These insights are vital for attracting more guests to maximize revenue. High-quality and trusted data will speed up decision-making and have a higher impact on profits.
The vital part of campaign execution is understanding demand strength and matching the correct type of campaign to the right segment. The hotel must craft relevant messaging to their audiences, potentially ineffective without accurate and targeted data. By leveraging quality data and analytics, marketers can deliver highly personalized offerings at scale and accelerate the buying journey for a faster recovery. A solid data foundation is essential to determine whom to target, when to target them, and what message to use.
For more ideas, download the white paper "Create a High-Performance Commercial Team."