1 DATA ANALYTIC IN HOSPITALITY INDUSTRY WITH SPREADSHEET

DATA ANALYTIC
IN
HOSPITALITY
INDUSTRY
WITH
SPREADSHEET
2 DATA ANALYTIC IN HOSPITALITY INDUSTRY WITH SPREADSHEET

INTRODUCTION
Over the past couple of decades, technology has started to play a major role
even in labour-intensive industries like the hospitality industry. Service holds the key to
success in the hospitality industry and technology has opened up every opportunity to
be able to serve the customer better. Internet of Things (IoT) is changing the game
across industries and will be instrumental in maximising growth for the hospitality
industry in the years to come.
However, Data Analytics Applications in the Hospitality Industry Attracting new
customers and encouraging them to return are constant challenges in the hospitality
industry. In a competitive sector where potential customers have a wide range of
options to choose from, it is essential to find effective ways to stand out from the crowd.
Customer analytics solutions can be very effective here, identifying problem areas and
improving marketing efforts. Here are some ways data analytics can help boost
hospitality business.
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LEARNING OUTCOME SUMMARY

At the end of this module 1&2, this are the topics to be discuss as learning
outcome:
 Discussing data management, challenge and opportunity in hospitality and
gaming;
 Develop the use of data in hospitality management;
 Discussing data and its role in data analytics;
 Forecast the different analytics in hospitality management;
 Discussing data analysis process in Microsoft Excel;
 Organizing data analysis process in hospitality management.
 Discussing the different phases of business with analytics;
 Integrate decision making by building an analytical organization in hospitality
management.
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INDIVIDUAL LEARNING SUMMARY

Many customers use multiple devices when browsing, booking, and
following up with hotels. It is therefore important not only to have a mobile-
friendly site or app, but also to ensure that a guest can transition smoothly
from one platform to another. Their data should be easily accessible
regardless of how they booked or what device they are using to check
reservations or other details. Creating a seamless, multi-platform experience
will not only create a better booking experience and increase the likelihood of
purchase, but will also encourage the consumer to return next time they go on
vacation.
Between travel agents, discount websites, and direct bookings,
customers have multiple ways to find and book rooms and services. It is
important to ensure that the business has all the necessary information about
the guest’s reservation in order to provide good service. But this data is also
very useful for analytics. Data from multiple channels can be used to
determine how guests find the property, what they are looking for, and how
direct bookings could be increased.
Targeted marketing is a valuable tool. Not every guest is looking for the
same things, and to send every customer the same promotions is to inundate
people with information they don’t care about. This can cause people to ignore
promotions or leave mailing lists altogether. By using customer analytics
solutions, it is possible to send each person only those promotions that are
likely to interest them, resulting in higher conversion rates and improved
customer satisfaction.
These analytics can also target site visitors, not just those on an email
list. Analytics tools can identify first-time visitors and offer them a discount, for
example. They can also track demographics such as age and region, making it
possible to create more targeted ad campaigns based on that information.
This is an invaluable tool in many industries. Rather than simply
determine how successful a given initiative has been, predictive analytics can
recommend the best course of action for future projects. They allow a
business to “test” several options and determine which one is most likely to
succeed, or to estimate consumer reaction to a specific planned initiative.
Investing in strong analytics can save considerable amounts of time and
money.
One of the most important assets that any hospitality company can have is an
Excel Power User. Everyone, regardless of the department, turns to them for answers
when they have an Excel question. They are the person who is called upon by
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Marketing to extract and clean a customer list and by the GM to do special analysis.
This is the person who can take raw information, like PMS and POS data, and turn it
into beautiful, intelligent Excel reports in minutes.

There are two kinds of Microsoft Excel users in the hospitality business: Those who
make neat little tables, and those who amaze their colleagues with sophisticated charts,
data analysis, and seemingly magical formulas. From analysts to administrative
assistants, anyone can be their hospitality company’s Excel Power User. Most
important, whether you work for a major brand or an independent, all Excel Power
Users have job security and career prosperity.
Excel continues to be, by far, the most popular platform for intelligence discovery
and information dissemination in the hospitality business. That is why every hospitality
company needs an Excel Power User. The skill set taught in this course is applicable to
every department, from Engineering to Marketing to Finance to Revenue Management.
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SELF REFLECTION
This course is very significant to me, since I have learned the basics, but not just
as basics rather a hard things to learned. However, data analytics can be used in
numerous ways in order to improve business operations, marketing strategies,
occupancy rates and yield. For example, through analytics the concierge can know
which local tours to recommend that fit a guest’s preference based on his past behavior.
It allows the restaurant department to predict which menu items are likely to be ordered,
based for example on the local weather. It allows the reservation department to predict
the optimal rate for a room. It enables the sales and marketing team to create and send
tailored messages across different networks. Analytics can also help hoteliers cut down
their energy costs without sacrificing guest comforts.
However, this course could help me to better understand, analyze and manage
how data analytics works in hospitality industry, and thanks to this course because with
the help of Microsoft excel I can learn it step by step the process.
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DATA ANALYTIC IN HOSPITALITY INDUSTRY WITH SPREADSHEET

(Learning Activities)

IM NO. 01

EVALUATION

ESSAY:

ACTIVITY 1.1. In your own understanding, discuss the data analysis. Why it is important to consider in
hospitality management?

For me, data analysis is an internal organizational function performed by Data Analysts that is more than
merely presenting numbers and figures to management. It requires a much more in-depth approach to
recording, analyzing and dissecting data, and presenting the findings in an easily-digestible format.

Thus, in the hospitality industry, data analytics can be used in numerous ways in order to improve
business operations, marketing strategies, occupancy rates and yield. For example, through analytics the
concierge can know which local tours to recommend that fit a guest’s preference based on his past
behavior.

Lastly, it allows the restaurant department to predict which menu items are likely to be ordered, based
for example on the local weather. It allows the reservation department to predict the optimal rate for a
room. It enables the sales and marketing team to create and send tailored messages across different
networks. Analytics can also help hoteliers cut down their energy costs without sacrificing guest
comforts.

ASSIGNMENT

ACTIVITY 1.1 Use books or internet in searching the role of data management in hospitality
management and gaming and give your insights by discussing the advantages. (Essay Output).

Service holds the key to success in the hospitality industry and technology has opened up every
opportunity to be able to serve the customer better.

However, the following are areas where analytics can play essential role:

Customer Segmentation

For the hotel industry, a more useful approach might be to identify the unique cluster groups and to
then conduct a separate value segmentation exercise for each cluster. For example, for a given hotel we
identify 4 basic clusters or distinct customer groups such as tennis groups, ski group, pampered group
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(e.g. use spa and valet type services) and the nighthawk group ( fine dining and theatre goers). The
segmentation approach might look as follows: initial learning from this type of segmentation could be
used in developing a marketing strategy that is data-driven.

Customer Profiling

Customer profiling is accomplished through in-depth analysis of guest demographics and lifestyle
characteristics. Attributes such as income levels, family status, age and sports and cultural interests, if
known, can be appended to model guests. Customer profiling can be used to create an e-mail listserv for
targeted marketing of current as well as prospective clients. Prospect profiles can be especially useful in
identifying those folks most likely to respond to marketing and/or promotional offers. Profiling can also
be important in determining which market segments are most productive and profitable.

Site Selection

Data mining can also be essential to determining sound criteria for restaurant site selection given an
index derived from an analysis of high-volume, successful units. Such items as demographics (customer
profile) and psychographic (buying patterns), and related customer descriptors are used to delineate
highly probable factors for site modeling. As a result, evaluation data and analytical profiling qualify
companies to be better able to identify candidate sites.

Customer Relationship Management

An effective CRM program can be a direct outcome of data mining applications. The ability to enhance
CRM given rapid accessibility of more comprehensive management information should lead to satisfied
clients and improved sales performance. The ability to anticipate and affect consumer behavior
(influence menu item sales and other promotions) can provide the restaurant with a competitive
advantage.

Productivity Indexing

By correlating order entry time (POS time stamped) with settlement time, data mining is able to provide
a reliable estimate of elapsed production and service times. This data provides insight into average
service time relative to customer turnover as well as waiting line statistics. While productivity data is
difficult to ascertain, this analysis provides factual data to assist management in fine tuning operations
(heart of the house and dining room staff).

Customer Associations and Sequencing

Data mining can uncover affinities between isolated events. For example, a guest purchasing the
restaurant house specialty is likely to also purchase a small antipasto salad and glass of Chardonnay.
Paired relationships provide a basis for bundling menu items into a cohesive meal that simplifies
ordering while ensuring customer satisfaction. Menu design can also be manipulated to feature such
combinations as unique opportunities for customers. Data associations are often credited with a means
for influencing customers to spend more than anticipated or up-selling.

ACTIVITY 2.1. Research technique in books or in internet in the difference of statistical analysis,
predictive analytics and text analytics. Cite an example and their proper implication. (Essay Output)
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In an effort to organize their data and predict future trends based on the information, many hoteliers
rely on statistical, predictive, and text analytics.

Talking about Statistics or statistical analysis is the process of collecting and analyzing data to identify
patterns and trends. It's a method of using numbers to try to remove any bias when reviewing
information. It can also be thought of as a scientific tool that can inform decision making. Thus,
Statistical analysis can be used in situations like gathering research interpretations, statistical modeling
or designing surveys and studies.

Moreover, predictive analytics encompasses a variety of statistical techniques from data mining,
predictive modelling, and machine learning, that analyze current and historical facts to make predictions
about future or otherwise unknown events. However, it is used as a decision-making tool in a variety of
industries and disciplines, such as insurance and marketing.

While, text analysis is a machine learning technique that allows companies to automatically extract and
classify text data, such as tweets, emails, support tickets, product reviews, and survey responses.
However, text analysis use to transforms unstructured data into qualitative actionable insights, helping
companies make smart data-driven decisions.
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DATA ANALYTIC IN HOSPITALITY INDUSTRY WITH SPREADSHEET

(Learning Activities)

IM NO. 02

EVALUATION:

ACTIVITY ESSAY: DIRECTION: Based on the sample in this module 2. Interpret the following table, search
for related literature and follow the proper citation format.

TABLE 1

Management Practices of Ecotourism Attractions in terms of Trainings for Tourist Personnel

Indicators Weighted Verbal Interpretation Rank

Mean

1. Tourist personnel are trained tour guide 3.53 Highly Practiced 4

2. Tourist personnel underwent Kayak

3.31
training Moderately Practiced 7

3. Tourist personnel underwent White

3.54
water rafting training Highly Practiced 2.5

4. Tourist personnel underwent Cave

3.54
exploration training Highly Practiced 2.5

5. Tourist personnel underwent Nature

3.56
conservation training Highly Practiced 1

6. Tourist personnel underwent Nature

3.46
Survival Training Moderately Practiced 6

7. Tourist personnel underwent First Aid

3.48
Training Moderately Practiced 5

Composite Mean 3.49 Moderately Practiced

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Legend: 3.50 – 4.00 = Highly Practiced; 2.50 – 3.49 = Moderately Practiced; 1.50 – 2.49 = Least Practiced;
1.00 – 1.49 = Not Practiced

TABLE 2

Management Practices of Ecotourism Attractions in terms of Responsibilities on ecotourism sites

Indicators Weighted Verbal Interpretation Rank

Mean

1. Tourist personnel properly maintain

3.46
equipment Moderately Practiced 5

2. Tourist personnel monitor cleanliness of

3.62
sites Highly Practiced 2

3. Tourist personnel have knowledge on

3.64
safety measures Highly Practiced 1

4. Tourist personnel know capacity on

3.57
tourist arrivals Highly Practiced 3

5. Tourist personnel inform guidelines for

3.51
Tourists Highly Practiced 4

Composite Mean 3.56 Highly Practiced

Legend: 3.50 – 4.00 = Highly Practiced; 2.50 – 3.49 = Moderately Practiced; 1.50 – 2.49 = Least Practiced;
1.00 – 1.49 = Not Practiced

TABLE 3

Summary Table on Management Practices of Ecotourism Attractions

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Indicators Weighted Verbal Interpretation Rank

Mean

1. Trainings for tourist personnel 3.49 Moderately Practiced 3

2. Responsibilities on ecotourism sites 3.56 Highly Practiced 1

3. Facilities, services and infrastructures 3.39 Moderately Practiced 5

4. Conservation 3.40 Moderately Practiced 4

5. Local Communities 3.50 Highly Practiced 2

6. Cultural Heritage 3.22 Moderately Practiced 8

7. Monitoring 3.25 Moderately Practiced 6

8. Marketing 3.23 Moderately Practiced 7

Composite Mean 3.38 Moderately Practiced

Legend: 3.50 – 4.00 = Highly Practiced; 2.50 – 3.49 = Moderately Practiced; 1.50 – 2.49 = Least Practiced;
1.00 – 1.49 = Not Practiced

TABLE 4

Difference of Responses on the Management Practices of Ecotourism Attractions When Grouped

According to Category

F-value p-value Interpretation

Trainings for tourist personnel 3.770 0.025 Significant

Responsibilities on ecotourism sites 1.610 0.203 Not Significant

Facilities, services and Significant

5.446 0.005
infrastructures

Conservation 1.786 0.171 Not Significant

Local Communities 0.655 0.521 Not Significant

Cultural Heritage 5.687 0.004 Significant

Monitoring 0.978 0.378 Not Significant

Marketing 5.350 0.006 Significant

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Legend: Significant at p-value < 0.05

TABLE 5

Encountered problems observed in the ecotourism of Quirino Province

Indicators Mean Rank Over-all Rank

1. Few numbers of tourist arrival 5.88 1

2. Lack of cleanliness on the sites 6.88 9

3. Lack of rest area for tourists 6.50 6.5

4. Lack of qualified tour guides 6.26 4

5. Lack of equipment for search and rescue 6.43 5

6. Lack of equipment for recreational activities in

6.10
ecotourism sites 2.5

7. Lack of parking areas 6.10 2.5

8. Lack maintenance of ecotourism sites 6.50 6.5

9. Lack of access to ecotourism sites 6.64 8

10. Lack of waste disposal facilities 7.68 10

-legend (verbal interpretations)

ASSIGNMENT

ACTIVITY 5.1. Search and compile integrated decision making in analyzing data and discuss the positive
role of it in hospitality management.
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According to Sandra Durcevic in Business Intelligence, Apr 16th 2019. Data driven decision making
(DDDM) is a process that involves collecting data based on measurable goals or KPIs, analyzing patterns
and facts from these insights, and utilizing them to develop strategies and activities that benefit the
hospitality industry in a number of areas.

Fundamentally, data driven decision making means working towards key business goals by leveraging
verified, analyzed data rather than merely shooting in the dark.

However, to extract genuine value from your data, it must be accurate as well as relevant to your aims.
Collecting, extracting, formatting, and analyzing insights for enhanced data driven decision making in
business was once an all-encompassing task, which naturally delayed the entire data decision making
process.

But today, the development and democratization of business intelligence software empower users
without deep-rooted technical expertise to analyze as well as extract insights from their data. As a direct
result, less IT support is required to produce reports, trends, visualizations, and insights that facilitate
the data decision making process.

From these developments, data science was born or at least, it evolved in a huge way, a discipline where
hacking skills and statistics meet niche expertise. This new profession involves sifting large amounts of
raw data to make intelligent data driven business decisions.

The ‘gold’ that data scientists ‘mine’ comes in two distinctive types: qualitative and quantitative, and
both are critical to making a data driven decision.

Qualitative analysis focuses on data that isn’t defined by numbers or metrics such as interviews, videos,
and anecdotes. Qualitative data analysis is based on observation rather than measurement. Here, it’s
crucial to code the data to ensure that items are grouped together methodically as well as intelligently.

Quantitative data analysis focuses on numbers and statistics. The median, standard deviation, and other
descriptive stats play a pivotal role here. This type of analysis is measured rather than observed. Both
qualitative and quantitative data should be analyzed to make smarter data driven business decisions.

Now that we’ve explored the meaning of decision making in hospitality industry, it’s time to consider
the reason why data driven decision making (DDDM) is important.

The importance of data in decision lies in consistency and continual growth. It enables hospitality
industry to create new business opportunities, generate more revenue, predict future trends, optimize
current operational efforts, and produce actionable insights. That way, you stand to grow and evolve
your empire over time, making your organization more adaptable as a result. The digital world is in a
constant state of flux, and to move with the ever-changing landscape around you, you must leverage
data to make more informed and powerful data driven business decisions. Data driven business
decisions make or break hospitality industry. This is a testament to the importance of online data
visualization in decision-making.
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Finally, here are 10 practical tips and takeaways for better analyzing data driven decision making in
hospitality industry. By the end, you’ll be 110% sold on the importance of making these kinds of
decisions.

1) Guard against your biases

Much of the mental work we do is unconscious, which makes it difficult to verify the logic we use when
we make a decision. We can even be guilty of seeing the data we wish was there instead of what’s really
in front of us. This is one of the ways a good team can help. Running your decisions by a competent
party who doesn’t share (or even know) your biases is an invaluable step.

Working with a team who knows the data you are working with opens the door to helpful and insightful
feedback. Democratizing data empowers all people, regardless of their technical skills, to access it and
help make informed decisions. Often this is done through innovative dashboard software, visualizing
once complicated tables and graphs in such ways that more people can initiate good data driven
business decisions.

With more people understanding the data at play, you’ll have an opportunity to receive more credible
feedback. The proof is in the numbers.

2) Define objectives

To get the most out of your data teams, hospitality industry should define their objectives before
beginning their analysis. Set a strategy to avoid following the hype instead of the needs of your business
and define clear Key Performance Indicators (KPIs). Although there are various KPI examples you could
choose from, don't overdo it and concentrate on the most important ones within your industry.

3) Gather data now

Gathering the right data is as crucial as asking the right questions. For smaller businesses or start-ups,
data collection should begin on day one. Jack Dorsey, co-creator and founder of Twitter, shared this
learning with Stanford. “For the first two years of Twitter’s life, we were flying blind… we’re basing
everything on intuition instead of having a good balance between intuition and data… so the first thing I
wrote for Square is an admin dashboard. We have a very strong discipline to log everything and measure
everything”. That being said, and done, implementing a business dashboard culture in your company is a
key component to manage properly the tidal waves of data you will collect.

4) Find the unresolved questions

Once your strategy and goals are set, you will then need to find the questions in need of an answer, so
that you reach these goals. Asking the right data analysis questions helps teams focus on the right data,
saving time and money. In the examples earlier in this article, both Walmart and Google had very
specific questions, which greatly improved the results. That way, you can focus on the data you really
need, and from bluntly collecting everything “just in case” you can move to “collecting this to answer
that”.

5) Find the data needed to solve these questions

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Among the data you have gathered, try to focus on your ideal data, that will help you answer the
unresolved questions defined at the previous stage. Once it is identified, check if you already have this
data collected internally, or if you need to set up a way to collect it or acquire it externally.

6) Analyze and understand

That may seem obvious, but we have to mention it: after setting the frame of all the questions to answer
and the data collection, you then need to read through it to extract meaningful insights and analytical
reports that will lead you to make data driven business decisions. In fact, user feedback is a useful tool
for carrying out more in-depth analyses into the customer experience and extracting actionable insights.
To do this successfully, it’s important to have context. For example, if you want to improve conversions
in the purchasing funnel, understanding why visitors are dropping off is going to be a critical insight. By
analyzing the responses in the open comments of your feedback form (within this funnel), you will be
able to see why they’re not successful in the checkout and optimize your website accordingly.

7) Don’t be afraid to revisit and reevaluate

Our brains leap to conclusions and are reluctant to consider alternatives; we are particularly bad at
revisiting our first assessments. A friend who is a graphic designer once told me that he would often find
himself stuck towards the end of a project. He was committed to the direction he had chosen and did
not want to scrap it. He was invested, for the wrong reasons. Without fail, when this happened he
would have to start all over again to see the misstep that got him stuck. Invariably, the end product was
light-years better reworked than if he had cobbled together a solution from the first draft.

Verifying data and ensuring you are tracking the right metrics can help you step out of your decision
patterns. Relying on team members to have a perspective and to share it can help you see the biases.
But do not be afraid to step back and to rethink your decisions. It might feel like a defeat for a moment,
but to succeed, it’s a necessary step. Understanding where we might have gone wrong and addressing it
right away will produce more positive results than if we are to wait and see what happens. The cost of
waiting to see what happens is well documented…

8) Present the data in a meaningful way

Digging and gleaning insights is nice, but managing to tell your discoveries and convey your message is
better. You have to make sure that your acumen doesn’t remain untapped and dusty, and that it will be
used for future decision making. With the help of a great data visualization software, you don’t need to
be an IT crack to build and customize a powerful online dashboard that will tell your data story and
assist you, your team, and your management to make the right data driven business decisions.

9) Set measurable goals for decision making

After you have your question, your data, your insights, then comes the hard part: decision making. You
need to apply the findings you got to the business decisions, but also ensure that your decisions are
aligned with the company’s mission and vision, even if the data are contradictory. Set measurable goals
to be sure that you are on the right track… and turn data into action!

10) Continue to evolve your data driven business decisions

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This is often overlooked, but it’s incredibly important nonetheless: you should never stop examining,
analyzing, and questioning your data driven decisions. In our hyper-connected digital age, we have more
access to data than ever before. To extract real value from this wealth of insights, it’s vital to continually
refresh and evolve your business goals based on the landscape moving around you.

Excellent Very Satisfactory Satisfactory Needs Improvement

Understanding of /
the lesson

Task Performance /

The activity that I like best is essay activities, because this is the simple activities to answer, but I answer it
substantially.

The activity that I need to improve on is activity essay on interpreting the table on IM no. 2, because this is my
weakness sometimes, but I tried my best to answer it.