In economics, one of the most well-known concepts is the Law of diminishing returns. What the law states is: As an investment in a particular area increases, the rate of profit from that investment, after a certain point, will decrease. Translated in Data analysis, one does not need to have 100% of the information to make the right decision.
More than ever data is available to help shed light in dark corners and to support making high impact decisions. When all goes well revenue managers will feel armed with the right data to check assumptions, gather insights and align teams towards profitable outcomes. With the quantity (and quality) of data sources increasing it can get daunting though.
Tipping from data-driven decision-making into analysis paralysis is common, but not unavoidable. As Scott’s original post says, having a strong filter on what NOT to analyse is important. Here are some other lessons we’ve learned in helping hoteliers navigate the world of data and insights.
The purpose of gathering and analyzing information is to produce a strategic course of action which changes or improves our desired outcome. Our goal is to reduce the time between data gathering and formulating and implementing actionable outcomes, or what I refer to as analytics efficiency.
Today more than ever, the hospitality industry is facing a tough call: How to grow sustainably and thrive amidst volatile times influenced by internal and external factors?
Risks affecting the hospitality industry are not only related to inflation, war, and geopolitics. Science has proven that climate-related risks and biodiversity loss are a threat to the fabric of society. The convergence of global systemic risks has a name: 'global polycrisis'[1]. The hospitality industry operates in a volatile, uncertain, complex, and ambiguous environment. Thus, it is challenging for hotel owners, operators, and leadership teams to adapt to the constantly changing circumstances.
In times of uncertainty, many businesses focus on their internal operations to survive. However, the climate and biodiversity crisis as well as the 'perfect storm' cannot be tackled in isolation, ignoring neighbours, other stakeholders, and the environment we are part of. “Everything that we achieve collectively at The Long Run is about protecting ecosystems, restoring, and regenerating landscapes, and connecting habitats. This is more important than ever in the current climate — there are increasing pressures on resources and so land use and management is critical to protect wildlife, ecosystems, and communities.” (Michael Dyer, the MD of Borana Conservancy, Kenya).
An open metaverse for an open, decentralized industry. A necessity or a want?
One of EarthCheck's favourite sayings is you can't manage what you don't measure. Investing in a system that enables understanding of pressure points and consequently overspend, drives performance and value. Data-driven decision-making turns tactical implementations into savings that are good for busienss and good for the planet.
For greater context, the Convention on Biological Diversity (CBD) was originally signed by 150 government leaders at the 1992 Rio Earth Summit, committing a dedication to promoting sustainable development and recognizing humanity's reliance on biological diversity. The UN Biodiversity Conference serves to address the CBD and the main objective of the conference now is to adopt the post-2020 global biodiversity framework. The first session of the 2020 UN Biodiversity Conference took place in October 2021 and the second session will resume at the end of this month (April 2022). There is increasing global momentum organizing around a rallying cry to protect 30% of land and sea by 2030, a rapidly approaching deadline.
If you'd asked me ten years ago about the future of hotel brands in the digital age, I'd have been uncertain. I could see the dramatic changes that were happening. Hotels' 'distribution costs' - particularly commissions paid to online travel agents (OTAs), other online intermediaries and brand loyalty schemes - were increasing rapidly, while fees paid to 'traditional' partners - wholesalers, tour operators, GDS, agents and the brands, themselves - showed no signs of decline.