Big data is adding a new dimension to hotel demand forecasting. New data points—like air travel, social reviews and even weather—can help hotels better understand the scope of their upcoming demand.
Before, the PMS housed most of the data used for forecasting within a hotel. This system holds years of historical information across a variety of room types, customer segments, length of stays and more. With that data, as well as booking pace, hotels generated forecasts and thus made pricing decisions.
But were those pricing decisions optimal? Probably not. Here’s why.
Today, there’s much more information available about consumer shopping habits. New data points include competitor pricing, events and macroeconomic factors, airlift data, social reviews and ratings, weather, and web shopping data. Each data set should be considered and the most relevant information should affect your pricing strategy.
In our latest whitepaper, Fine-Tune Your Hotel Forecast with Big Data, we explore the importance of these data points, highlighting how they can help hotels build an accurate forecast months in advance. By building a better forecast, hotels can make profitable rate adjustments earlier in the booking window and fill more inventory at optimal rates to drive overall revenue.
So once you’ve looked at historical booking information and competitor pricing, where should you go next?
- Events and Macroeconomic Factors—Knowing what’s happening around town is key. Events, conventions and festivals can mean increased demand. Other local factors, like economic development or zoning changes, can play into demand as well.
- Airlift Data—In short, more passengers on the ground means more demand.
- Social Reviews and Rating—Better reviews lead to higher demand, which means you can increase pricing and maintain occupancy.
- Weather—Good weather can affect demand. Ditto for bad weather. If you’re in a weather-driven market, the impact can be even greater.
- Web-Shopping Data—Knowing who is shopping, when and why they’re not booking can provide incredible insight.
Learn more about these big data points and how they can affect your forecasts and pricing strategy here.