Demonstration 61

As in the previous iteration demonstrations, this demonstration was undertaken in the hotel premises and took from 2h00m to 3h30 depending on the hotel. The persons present were almost the same as in the previous iteration, except for H2 which brought the new revenue/e-commerce manager and an administration consultant to the demonstration.

As in the previous iteration a walkthrough of the implementation options/features was made.

4.3.3.1 PMS  

Scorecard

The first option presented in this iteration demonstration activity was the PMS metrics/indicators scorecard.

This scorecard - as displayed in Appendix XXI - has only one table. This table exhibits a wide range of operational metrics/indicators and presents the values for the previous data, month-to-date (MTD) and year-to-date (YTD) and also the comparison and variation from the same period of the last/previous year (LY). It also includes the accumulated values of the last 12 months and for hotels that don’t have yearly closing periods, the daily average for the last 12 months. Although much of these metrics/indicators are available to the hotels through their PMS systems, the way the information is displayed on screen and the consolidation of all the information in the same screen makes it innovative. In addition, the speed at which it is presented and especially the possibility of applying filters/segmentation is a unique feature that is not available in most of the PMS systems, transforming this from a static report into an analytical tool as well.

Analytics

This page makes use of the tools and capabilities of DA to provide expert users a way to study patterns, trends, correlations and segmentation in operational metrics/indicators. As previously presented in Chapter 2, this is a feature that all PM systems should have and its importance is growing, particularly in hospitality with the multiplicity of customer segments and distribution channels. As presented in Appendix XXII this page is composed of four interactive charts: • Booking frequency distribution analysis: histogram that makes

window or the length of stay (nights) of the bookings made for the defined period.

• Metric trend analysis: line chart that enables the user to visualize the behavior of the selected metric/indicator over the selected time period. This is useful especially for observing seasonal behaviors and the overall trend by observing a regression line;

• Study of two metrics correlation: scatter plot that enables the study of the correlation between two selected metrics/indicators, in a selected time period. It also presents the Pearson correlation coefficient and the coefficient of determination between the two selected metrics/indicators. • Metric analysis in two dimensions: “heat map” that allows a fast

analysis of the combined metric/indicator from two selected dimensions, enabling the analysis of a 10 x 10 matrix of values in a very short time. Filtering and segmentation by distribution channels, market segments, nationalities and room type dimensions can be applied to all the charts.

4.3.3.2 Market  

Official statistics

This page, as presented in Appendix XXIII, includes three charts and one scorecard.

The three charts are:

• Market share monthly analysis: combination of line and bar charts that display the monthly number of stays of the hotel against the total of stays in the region (independent of the type of hotel unit), as well as the stays fair share19 and market share;

• Room occupation monthly benchmarking: line chart that compares the hotel room occupation rate against the region room occupancy rate (independent of the type of hotel unit);

19 _{To apply the fair and market share calculations formula, the monthly number} of stays is calculated by dividing the yearly number of stays for the twelve months, since the monthly information is not provided by any official entity.

• Stays occupation monthly benchmarking: line chart that compares the hotel stays occupation rate against the region stays occupancy rate (independent of the type of hotel unit).

All these outputs are independent of the type of hotel unit.

The scorecard enables benchmarking the hotel’s yearly performance against the same type of properties in the same region and also against the total hospitality properties in the region, regardless of the type.

The information for this scorecard is manually inserted into the system database from the INE official statistics. However, not all metrics/indicators are available directly in raw data, so, the signaled ones are calculated using the base metrics/indicators.

STR competitive set

From the supply and demand data delivered by STR three indicators were used: ARR, Room occupancy rate and Revenue Per Available Room (RevPAR).

Although there aren’t yet many hotels in the Algarve region subscribing to the STR service, meaning that there is some difficulty in defining a competitive set, it was decided to implement this data source since the information is timely obtained than from the official entities (STR delivers its data on the 20th of the following month, while INE and TP sometimes up to five months to publish their data).

Due to the previously mentioned small number of hotels associated with STR in the region it was decided to choose the same hotels to be part of the competitive set of all the hotels participating on the project. The only three parameters on this selection were that the competitive set should meet the conditions stipulated by STR and all hotels should be from the Algarve region and be classified as “upper upscale class”, which is the classification STR attributes to the hotels participating in the project.

• Metrics monthly analysis: line chart that allows the comparison of the monthly performance of the selected indicator, for the selected year, against the STR competitive set average;

• Two-year trend analysis: line chart that shows the evolution of an indicator for both the hotel and the STR competitive set, over 2 years. It also shows the regression lines of both datasets so that trend of both the hotel and competitive set can be compared;

• Yearly metric analysis: bar chart that enables a fast comparison between the hotel and the STR competitive set for the last three years performance for the selected indicator.