Stop Chasing Ghosts: Use Real Data Insights, Not Bad KPIs
🏨 Hotel industry experts warn against the rush to adopt new KPIs like "RevPAG" (Revenue Per Available Guest), emphasizing the flaws in metrics that lack clear definitions. The focus on averages, such as Average Guest Spend, may mask real variations in guest behavior, as averages smooth out data nuances. The drive for occupancy can result in a "lowest common denominator" approach, with Revenue Management Systems (RMS) potentially lowering rates to achieve bookings, leading to a revenue loss from higher-paying guests. Alternative strategies include using histograms to visualize data distribution and moving beyond averages to tailor services, identify VIPs, and optimize pricing. Modern Hotel Business Intelligence (BI) systems, like Demand Calendar, are vital for consolidating and visualizing complex data, providing actionable insights, and breaking down departmental silos for better, more profitable decision-making. The article suggests measuring smarter, leveraging existing data insights, and focusing on targeted strategies over acquiring more KPIs.
Share
