Detect, analyse, conclude and project.
In times when intuition and experience are no longer enough to make a hospitality business function optimally, digital transformation is finding its way into the hospitality industry. Business models based on big data analytics today make it possible to make informed and efficient decisions faster and even predict future trends. Data mining traces anomalies, patterns and correlations in data sets containing millions of data in milliseconds. A level of detail that you and I as humans cannot pick up.
Dashboard AAPI
Past > Dates
The data mining process consists of 6 levels or steps in which past and present data (‘near’ real time) evolve into future-oriented and informed decisions to optimise your hospitality business.
Past facts, actions and decisions provide us with a large container of raw, historical data. This data is the foundation of every further step we take. Specifically, by data we understand all collectable data including, for example:
- purchase prices
- cabinet tickets
- wage and contract data
- time clock data
- daily prices per overnight stay
This range of inputs allows maximum use of the available data in structured models. Beforehand, due attention is paid to the integrity of the data because, of course, quality and reliability are essential.
Past > Data > Information
Structuring data gives us a detailed picture of the situation. We evolve from data to information. This means actively reworking/transforming the chaos in large data sets into workable and understandable information. We determine what is relevant and what is not; extraneous values are examined. With this structured information, we start working to understand what just happened in the past and present (‘near’ real time). This involves, for example:
- worker x worked y hours today with a wage cost of z euros
- in week w, there were x overnight stays at a daily cost of y euros with a turnover of z euros
- soft drink type x was purchased at y euros/bottle and sold at z euros/bottle
- The chaos of mass input is thus transformed into concrete readable and usable information leading to a number of observations
Past > Data > Information > Knowledge > Wisdom
These observations form the basis on which we develop a deeper knowledge of the situation. We identify where things are going well, where there are bottlenecks, where improvement and optimisation are possible. Regardless of any assumptions, your business is converted into figures, thus perfectly mapping out where your business stands. A concrete example of this could be:
- Your café is open every working day from 12am to 1am. Between 11pm and 1am, only a very limited amount is spent on average although there is invariably occupancy by 2 workers. Insight: review opening hours, optimise staffing in number and profile. This knowledge leads to insights that you or your team can deepen and process.
For this is where wisdom appears and where analytics have their real added value. Indeed, supporting models allow the knowledge gained to be used intelligently to make projections and draw out future plans. Here, correlations, patterns, connections and trends are analysed both within your company and in comparison (benchmarking) with the hospitality sector. This way, you can make well-founded and informed decisions for your hospitality business at an accelerated pace.
- increasing margins
- improving customer relations
- reducing risks
- scheduling employees more efficiently and smarter
- optimising upsell
Past > Data > Information > Knowledge > Wisdom > Future
With the acquired knowledge in mind, it is time to take the final step.
The real icing on the cake, of course, is the future. What do we expect to happen there? Where are further opportunities to expand, broaden and/or deepen your business? Will established trends continue? How can we best reverse a negative indicator in a structured way? How do I build further pay margin in the future based on the wisdom gained?
So, in addition to using the all-important common sense, we move from reactive to predictive analysis. Just that little bit further so that you, as a hospitality entrepreneur, are ahead of your competitors. You can perfect your business both internally and externally and maximise your profits in an informed way.
