Data Analytics in the hospitality industry Harvard Case Solution & Analysis

Data Analytics in the hospitality industry The Case Solution 

Hospitality Statistics

Hospitality can be characterized extensively as an industry that spotlights on giving users a way to take part in relaxation exercises, be that staying in a hotel or eating in a café. It envelops numerous businesses, the biggest of which are convenience and food and drink administrations. In 2020, the worldwide neighborliness market arrived at 3486.77 billion U.S. dollars and was conjecture to develop to 4132.5 billion U.S. dollars in 2021 at a compound annual growth rate (CAGR) of 18.5 percent. The below graph shows the statistics of hospitality industry in US market from year 2020-21.

Summary Report

Summary Reports are viewed as business-and departmental investigation devices and are utilized by monetary administrators and leaders to break down key measurements, incomes and benefit. The primary function of this report is to combine KPIs and financial summaries.

The top section of the report shows charts and monthly revenue generated in year to date figures, whereas the next two sections shows revenue and profitability.

Purpose of summary report

Hospitality industry uses an Operational Summary Reports to provide managers the finishing or combined statistics of the company. A good strategic approach in operational summary helps in developing the better functional strategies and benefit the company in better way.


Exhibit 2 shows an example of operating summary report of Hospitality industry.

Data Analysis: Summary statistics

Summary statistics plays an important role in sorting the data in a generalized form. It is very useful in filtering the data and help the organization in driving their overall revenue by realizing the basic needs of their customers. In hospitality industry, it is very important for the hotels to understand which category of rooms and services their customer’s wants and works on it potentially.

After examining, we have sort out that the couple or family room has most elevated likelihood among all of the lodgings. Individuals are more tends to visit hotels with couples, which in turn expands the lodging incomes because couple room requires more administrations and extra services.

Conducting Summary Statistics using Sas

There are a variety of procedures available in SAS that will help you with your summary statistics analysis. You can use PROC FREQ to calculate the frequency distribution of data points. This table provides information on the number of values in a group or interval. The frequency distribution is a useful tool for performing statistical analyses and presenting results. It is also a good choice if you are interested in comparing the distributions of a group of variables. Summary statistics consists of four main steps. Each step has several steps, including the data import, the analysis, and the reporting of the variables and output.The First step is Basic Statistical Analysis. In this step, you will describe the data. The second step is the 'variables' step. You will report variables and perform descriptive statistics.The second step is the introduction to PROC. These tell the software what to analyze the data. The third step is to calculate the probability of a single event. This process is called hypothesis testing. This procedure allows you to evaluate a hypothesis's probability of occurrence. Once the results are calculated, you can analyze the results with the SAS. The fourth and the most important step is to create the data.

Significance of Summary Statistics in Business Decisions for Hospitality Industry

There are many advantages of using summary statistics in business decision-making. These tools help you make better decisions based on data rather than gut feelings.Summaries of statistical data help you understand the features of data sets. They summarize measures of a parameter. Most commonly used are the means, median, and modes.For. example: Use summary statistics to support your business decisions. It can be time-consuming to collect and compile all the data, but it is worth the effort. Moreover, you can easily analyze the results in a matter of minutes.Another example of the importance of summary statistics in business decisions is in quality assurance programs. In quality assurance programs, summary statistics are critical to minimizing variations and ensuring consistency throughout the process. Using these tools also helps reduce wasteful costs of materials used in making a product, such as overage and scrap. These measures can help prevent warranty claims because of defective products.

Results of Summary Statistics using SAS

The graph showed below in exhibit 3 shows the probability of the guests visits to the hotel on the basis of their age group and the type of the room.

If we look into the graph, we can investigate that people of age group above 25 or 30 are more likely to visit hotels alone or as a couple. There is less probability of an individual visiting single handedly. But if we see more precisely, people are more likely to visit hotels as couple. So, the couple room has the highest visiting probability among each one of them. Also, the suite room has significantly higher probability than single room but not more than couple room.

Recommendations regarding optimal no. Of each category of rooms on the basis of Average Profit

Evaluation of Having Room Categories in Hotels

Hotel classifications and room types are characterized to tell clients what they can expect and should be set out according to target market and patterns. Setting up explicit yet basic, far reaching and adaptable room types is the most effective way to provoke interest among people. There are certain advantages and disadvantages of using certain types of room’s categories:

Pros and Cons

There are many advantages of using hotel room categories. In the hotel industry, they allow a guest to choose the amenities and type of decor they prefer. This allows the guest to move easily between rooms without having to use a hallway. However, there are some disadvantages to using hotel room categories. The main advantage of using room categories in hotels is that they capture key attributes of a guest. For example, if a guest prefers a bathtub over a shower, he or she would pick a bathtub. The downside is that a guest would not want to choose one of the other room types. And, the hotel could run into overselling and losing a lot of revenue. Luckily, this is not the case.hotel room types fail to capture important attributes of a guest. For example, they don't capture details like the location, the view direction, or whether the room has a bathtub. Despite this, guests are generally happy to receive an upgrade, but the "better" room might not have the attribute they wanted to stay in the first place. If the room isn't in the best location, it's best to keep the smallest rooms and maximize the profitability of the entire hotel.In addition to the benefits of reducing costs, categories of rooms in hotel are a great way to attract the most clients. They allow you to create multiple room types for the same location. You can use room types to attract the most people. Depending on your needs, you can also set the prices of different rooms. In addition, you can also choose the room type based on the location and the view. In this way, you can make sure that your guests get the room they want.


A hotel offer diverse classification of rooms based on room size, area, view, stylistic layout, decorations, conveniences, and so forth. Accordingly the front office has more than one room levy for various classification relying upon the kind of room. Front office workers ought to know about various class of the room’s hotel is advertising. Not just about the classification, they ought to have definite information about highlights of every classification of the room so that correct room could be proposed to right visitor. Front office workers are recommended to have definite item information that lodging offers to the visitor. So it becomes basic for front office staff to comprehend sorts of rooms and their highlights. Also it is important to have a hotel in the right location, you can make it stand out by presenting rooms with different designs. The design of the room should be unique and make guests feel at home. It is the duty of the managers to define the categories of hotel more precisely to their customer so that they can choose between two types of rooms, for example, one that is more affordable than another or one with more amenities. In addition, you can offer different prices for the same room. This makes it easier to tailor the offers to suit the needs of the different segments of your guests. Moreover, these rooms also help you increase your revenue. So, when you plan to add more types of rooms to your hotel, you should think of using different types of categories in hotels.As upon surveying, we have seen that couple room has significantly higher probability than suite or single room so in order to attract the visitors, it is also recommended for the managers to provide their guest the type of services that meets visitor’s expectations. Also, by providing different couple packages and deals, it would be helpful for the hotels to attract their potential customers which in turns helps in increasing overall revenues.................

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