Data fragmentation is a common headache.
But a cohesive strategy can transform challenges into opportunities.
In the hospitality industry, the crux of enhancing operational efficiency and meeting ambitious financial targets often lies in the seemingly mundane task of data aggregation. Yet, the challenge of piecing together disparate pieces of data from various systems into a coherent, actionable strategy is anything but trivial.
Loir Kiel, longtime Chief Commercial Officer at Kessler Collection, now at The Boca Raton, puts it like this, “The problem manifests itself in that if I’m giving the investors what they want relative to those targets, then I’m in a constant state of explanation as to why we didn’t get there or why we did get there. Either way, neither one ends up being a great place. You end up in a constant state of explanation, and if I’m always explaining, then that takes away from the time I get to spend doing the actual strategy and moving us forward.”
From sales and marketing to revenue management, leaders across the board face this daunting task daily. Each department traditionally operates with its own set of tools and metrics, often leading to a siloed approach that hampers a hotel’s overarching commercial strategy. This fragmentation stifles the flow of information and impedes the ability to make informed decisions that drive profitability.
“One of the challenges they find is that the data remains siloed… we didn’t necessarily have the best tech stack… it’s still a little bit siloed in a way that these systems don’t necessarily talk. My revenue management system differs from my channel management system, which differs from my CRM system. The way that I bring them together right now is in a monthly meeting. It can be exhausting, and the bigger challenge is data accuracy, too,” confesses Tay Mauro, Vice President of Commercial Strategy for Legacy Vacation Resorts.
“One of the biggest challenges is disparate systems. There is so much data; it’s everywhere, and we’re trying to bring it in and make it useful. We’re going to have to have software that kind of dashboards it all and helps you understand where the opportunities are quickly,” says Lovell Casiero, Chief Commercial Officer for PM Hotel Group.
“I can empathize and understand with everything being very manual regarding data pulls, says Jenna Fishal, Chief Commercial Officer at First Hospitality. “You have individuals in various departments that are fishing for their data for a specific data point and making a decision based upon that data point alone.”
These leading commercial strategists emphasize a pervasive issue: the industry’s struggle with transactional data that fails to align with strategic insights, leading to a constant state of data wrangling rather than forward movement. Unless there is a unified commercial strategy that brings the Revenue, Sales, and Marketing departments together, as well as their data, the problem will prevail.
Some hotels have hired data analysts to help with data wrangling; however, there’s an added cost, and strategic recommendations remain challenging.
“…we have exactly the same issue as everybody else describes, so we have multiple systems… Out of that, we created a role of a specific data analytics manager, and his role has literally just been to make sure the data points are all correct. So, I had to create a job specifically to do that, but he successfully achieved that, so we do have the same information everywhere, and he is watching it so carefully…” says Sara Kristófersdóttir McGuinness, Chief Commercial Officer at Center Hotels.
“We work very closely with [our BI team], and then we also have a data expert on the sales side and a corporate analyst on the revenue management side. But to find the right platform that really brings it all together—I think I have a list of more than 30 different data sources that we’re trying to bring together, that’s still something that we’re trying to solve for, and that’s high on the priority list for 2024,” explains Patrick Pahlke, Chief Commercial Officer at Sage Hospitality.
While not simple, the solution is clear: implement a unified commercial strategy platform that consolidates data from sales, revenue, and marketing. A platform like LodgIQ becomes indispensable, offering a beacon of hope in navigating the data maze. It consolidates vital information, providing not just a unified view but actionable insights that pave the way for strategic decisions across all commercial aspects of hotel management.
This unified approach to function and technology brings several benefits:
- Efficiency in Data Management: By centralizing data, teams can access and analyze information quickly, reducing the time spent on data collection and allowing more time for strategic planning.
- Strategic Alignment Across Departments: When sales, marketing, and revenue management work from a shared data pool, their strategies align, leading to a more cohesive approach to achieving commercial goals.
- Actionable Insights for Decision Making: A consolidated platform provides data, insights, and recommendations tailored to enhance revenue outcomes based on market trends and consumer behavior.
- Enhanced Profitability Through Informed Decision Making: With easy access to relevant data and strategic recommendations, hotels can optimize room rates, refine marketing campaigns, and improve sales efforts, driving profitability.
In essence, tackling the challenge of disparate data requires more than just technological integration; it demands a shift in mindset. A platform like LodgIQ doesn’t just offer a solution to the problem of data fragmentation; it heralds a new era of strategic thinking in hospitality. By embracing this unified approach, hotels can transcend the limitations of traditional data silos, unlocking the full potential of their commercial strategies to navigate toward sustained success and profitability.
