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 the consistent growth in the revenue and occupancy of hotels.
Revenue Management makes the proper use of real-time and mission-critical insights, which are produced by Business Intelligence. It helps in the collection of data and interpreting it. After this, it will present different findings on different key performance indicators, as recognized by various business stakeholders. Here are some of the aspects of the potential of Text Analytics on Revenue Management System:
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 over-priced. Speaking of data analytics, the 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.
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 the regions. It is also useful for forecasting occupancy. In addition to this, it offers a helping hand in designing different pricing strategies.
It is another crucial part of revenue management. By choosing 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, the 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 on 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.
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 the suitable choice to the revenue management team to confer various reports timely. It helps the revenue management team to make the decisions accurately and adequately.
Efficient inventory management happens to be an ideal choice for the implementation of revenue management. Text analytics offers a suitable option in understanding the impact of sales with the data from different product demand, 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 of 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.
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 are inclusive of market size, different homogenized target groups, the product scope across various segments, accessibility to the customers, quantified results of various product launches.
Such in-depth research findings allow the businesses on the Revenue Management System to take an informed decision for launching the latest products in the market with the prerequisite confidence.
With Text Analytics, businesses will be identifying 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, current purchase history offers unique promotion ideas.
Businesses provide different personalized promotions, recommend seasonal demand provides, 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.
The airline industry happens to be the early adapter of revenue management. It provides a helping hand in enhancing revenue by optimizing seat sales, route profitability, ticket pricing, and inventory monitoring. Text Analytics provides the Airlines’ suitable choice to provide different dynamic pricing strategies, depending on the price sensitivity, seat availability, geo-location, seasonability, and various contextual factors for additional passengers, falling under the holiday, business, and economy segments. It needs an integrated and highly cleansed data environment that helps synchronize offline and online data along with data from different third-party resources. Advanced analytics solutions offers a suitable choice for maintaining effective customer relationship management. In addition to this, it is also useful for marketing and different loyalty programs.
Author: Muthamilselvan is a passionate Content Marketer and SEO Analyst. He has 7 years of hands-on experience in Digital Marketing with IT and Service sectors. Helped increase online visibility and sales/leads over the years consistently with my extensive and updated knowledge of SEO. Have worked on both Service based and product-oriented websites.