Business Intelligence: “Essential for Today’s Hospitality Environment”
Top companies rely on BI systems to spot unnecessary costs, solve problems quickly
By Cam Troutman
Operators explain that BI systems that combine data from Smith Travel Research, hotel PMSes, time and attendance and other systems make it possible to keep a closer eye on variable costs and solve problems more quickly than spreadsheets.
“We are not looking for a panacea with BI,” said Joseph S. Bello, CHA, vice president of asset management with Inland American Lodging Advisors, Inc., which owns more than 100 properties carrying Hilton, Marriott, IHG, Hyatt, and Choice flags. “The fact is that access to a greater variety of performance information triggers closer scrutiny of why specific properties are successful or need attention.” Inland is implementing a Business Intelligence (BI) system called Execuvue® from Aptech for recurring analysis reports on metrics like:
- Highest, median, and lowest cost-per-room of certain expenses such as payroll and operating costs, compared on multiple levels including brand by brand; manager by manager, etc.
- Rollups of data by manager, market, and other factors to see which management teams are best at controlling costs, capturing market share, and maintaining profitability and flow-through.
- Quickly identifying properties that lie outside the norm for each criterion.
Story behind the Numbers
Bellow noted, “An example of external drivers that may influence cost variances would be labor costs in tertiary markets versus major metropolitan markets.” Or it might be something more easily solvable, like excessive overtime or other conditions that management can easily correct with short-term strategies.
For Mark T. Pate, Sr., assistant controller and IT director for Highpointe Hotel Corporation, daily reports from the business intelligence system are as essential as morning coffee. “We use our BI to track each of our hotels’ performance,” he said. “At 7:40 every morning I get a report with our customized ‘property scorecard’ and ‘daily ranking’ printouts. The Ranking report lists our hotels by metrics that include RevPAR, occupancy, ADR, and MTD room revenue. The property Scorecard shows daily performance against plan, and the metrics for same-day last year. Aptech built these reports for us with green and red color-coding, so we can quickly spot properties that may be under budget and require attention.”
Support for Strategic and Tactical Decisions
Vivek Shaiva, chief information officer for LQ Management, L.L.C., said, “The Execuvue BI enables LQ to provide its officers and corporate management team with daily operating reports to track key business performance indicators. In the current market economy, the system is a critical part of LQ’s management information system that provides support for tactical and strategic decisions.” Shaiva said his team worked with Aptech to develop custom flash reports that show the company’s overall performance and enable executives to drill down into data to evaluate individual property contribution.
LQ Management collects operating data from all its properties during the night audit process, and then consolidates the individual hotel information into a central database that exports it to Execuvue for management reporting and analysis. “Our CEO and other officers have custom Execuvue operating reports on their desk by 8 a.m.,” Shaiva said.
Profitability is in The Numbers
At HITEC Aptech will be in Booth # 218 –
Stop by to meet the team, receive a demo, or to say hello.
HITEC TUTORIAL SESSION by Cam Troutman
“Power Your Profits! Flow-through Business Analysis, a Tool for the Times.”
Tuesday, June 23rd at 11:15 am (Tutorial Room A).
About Aptech Computer Systems | Aptech Computer Systems, Inc., based in Pittsburgh, Pennsylvania, leads the hospitality industry in leveraging change by valuing human relationships and applying technology to solve business problems for people.
Incorporated in 1970, Aptech is a financial and operations technology solutions and service company whose products include state-of-the-art back office, business intelligence and enterprise planning products: Profitvue®, Execuvue®, Webvue® and Targetvue. Over 2,500 users, including very large chains, multiple-property management companies and single site hotels, utilize Aptech solutions to understand their financial and operational data. By offering the hotel industry a solid resource of hospitality professionals, and through its proven ability to evolve technology offerings as the market dictates, Aptech is proud to have earned 100% customer loyalty. Execuvue and Profitvue are registered trademarks and MyExecuvue® is registered to Aptech Computer Systems, Inc. All other trademarks are owned by their respective holders.
Phone: (800) 245-0720