The Analytic Hospitality Executive

Targeted analytics to address the unique opportunities in hospitality and gaming

The Analytic Hospitality Executive helps decision makers understand big data and how it can drive value in the industry. Written by a leading business analytics expert who specializes in hospitality and travel, this book draws a direct link between big data and hospitality, and shows you how to incorporate analytics into your strategic management initiative. You'll learn which data types are critical, how to identify productive data sources, and how to integrate analytics into multiple business processes to create an overall analytic culture that turns information into insight. The discussion includes the tools and tips that help make it happen, and points you toward the specific places in your business that could benefit from advanced analytics. The hospitality and gaming industry has unique needs and opportunities, and this book's targeted guidance provides a roadmap to big data benefits.

Like most industries, the hospitality and gaming industry is experiencing a rapid increase in data volume, variety, and velocity. This book shows you how to corral this growing current, and channel it into productive avenues that drive better business.

• Understand big data and analytics
• Incorporate analytics into existing business processes
• Identify the most valuable data sources
• Create a strategic analytic culture that drives value

Although the industry is just beginning to recognize the value of big data, it's important to get up to speed quickly or risk losing out on benefits that could drive business to greater heights. The Analytic Hospitality Executive provides a targeted game plan from an expert on the inside, so you can start making your data work for you.

Foreword xiii

Acknowledgments xvii

About the Author xxi

Chapter 1 Building a Strategic Analytic Culture in Hospitality and Gaming 1

Strategic Analytic Culture 3

Moving Ahead and Staying Ahead with Prescriptive Decision Making 5

Making It Happen 9

Getting Started 13

How This Book Can Help 15

Notes 17

Chapter 2 Data Management for Hospitality and Gaming 19

Data Management Challenge and Opportunity 21

Data Storage 29

Data Integration 34

Data Quality 40

Measuring the Benefits of Data Management 42

Responsible Use of Data 43

Conclusion 51

Additional Resources 52

Notes 52

Chapter 3 Data Visualization 53

Why Are Visualizations So Important? 55

Visualization Technology 56

Data Handling 58

Visualization Types 62

Creating Powerful Visualizations 67

Conclusion 79

Additional Resources 80

Notes 80

Chapter 4 From Reactive to Proactive Decision Making: Advanced Analytics in Action 81

Reactive to Proactive Decision Making 83

Statistical Analysis 84

Forecasting 91

Predictive Analytics 96

Optimization 100

Machine Learning 103

Text Analytics 104

Making It Work—Analytics and Technology 111

Innovations in Solution Delivery 113

Real Time and Streaming 118

Conclusion 119

Additional Resources 119

Notes 120

Chapter 5 Analytics for Operations 123

Operations 125

Operations Data 128

Advanced Analytics for Operations 134

Workforce Planning and Optimization 140

Queues 146

The Impact of Queue Configuration 148

Managing Consumer Perceptions of the Wait 152

Benchmarking Operations Analytics Capabilities 156

Technology and People Investments 158

Conclusion 163

Additional Resources 166

Notes 166

Chapter 6 Analytics for Marketing 167

Marketing Data 169

Advanced Analytics for Marketing 177

Digital Intelligence 183

Benchmarking Marketing Analytics Capabilities 191

Technology and People Investments 196

Conclusion 199

Additional Resources 201

Notes 201

Chapter 7 Analytics for Sales 203

Sales Data 205

Advanced Analytics for Sales 210

Statistical Analysis 210

The Changing Landscape of Sales 212

Benchmarking Sales Analytics 214

Conclusion 218

Note 219

Chapter 8 Analytics for Revenue Management 221

Revenue Management: A History Lesson 223

Then Things Changed . . . 227

Revenue Management Data 229

Revenue Management Analytics 231

Benchmarking Revenue Management Analytics Capabilities 247

Technology and People Investments 249

Conclusion 252

Additional Resources 255

Notes 255

Chapter 9 Analytics for Performance Analysis 257

Data for Performance Analysis 259

Advanced Analytics for Performance Analysis 263

Benchmarking Performance Analytics Capabilities 267

Technology and People Investments 269

Conclusion 273

Additional Resources 273

Notes 274

Chapter 10 Analytics for Gaming 275

Gaming Data 278

Advanced Analytics for Gaming 281

Casino Floor Revenue Optimization 285

Fraud and Anti–Money Laundering 294

Benchmarking Gaming Analytics Capabilities 299

Technology and People Investments 300

Conclusion 303

Additional Resources 304

Notes 304

Chapter 11 Pulling It All Together: Building an Analytical Organization 307

Getting Started: Well-Defi ned, Small Projects for Maximum Impact 309

Organizing Your Analytics Department 316

The Build versus Buy Decision 324

Integrated Decision Making 327

Conclusion 337

Additional Resources 340

Notes 341

Appendix 1 Case Study from Infor: Analytics Opportunities in Operations 343

Appendix 2 Case Study from IDeaS: Meetings and Events Revenue Management 349

Appendix 3 Why Dynamic? 367

Appendix 4 Chapter Questions 377

References 385

Index 389

KELLY A. MCGUIRE, PHD is senior vice president, revenue management and direct marketing for MGM Resorts International, where she is responsible for driving profitable room revenue for MGM Resorts International’s Las Vegas resorts. Prior to this role, she was Vice President, Advanced Analytics for Wyndham Devstination Network. She led a team of data scientists and developers who build custom analytic solutions for Wyndham Vacation Rental’s companies and the RCI time-share exchange. Prior to joining Wyndham, she led SAS’s Hospitality and Travel Global Practice, setting the global analytics strategy for these industries, and supporting engagements around the world.

What if your organization had the ability to tap into the power of data analytics in order to become more competitive in a complex marketplace? What if analytics could give your company more reliable context, better direction, and stronger data interpretation? What if evolving short-term activity took its proper place within the long-term picture? The Analytic Hospitality Executive: Implementing Data Analytics in Hotels and Casinos is the resource that can help unlock value in your organization and take your business to greater heights.

Written by analytics and hospitality expert Kelly A. McGuire, this vital resource reveals how top-level executives can incorporate analytics into strategic management initiatives. Filled with the much-needed tools and techniques while asking the essential questions, the book demystifies this complex area, providing definitions and advice in business language. In addition, it shows how to integrate analytics into business areas across the enterprise in order to drive a more successful organization.

The author explores what it takes to move data analytics from a grassroots effort within a single department to a comprehensive organizational structure. McGuire shows how to select a model that is right for your organization whether it’s a decentralized model with analysts imbedded into the departments or more centralized models that put all the analysts in a group. She offers practical ideas for incorporating analytics into existing business processes as well as assisting leaders in discovering where they can drive value in their organization using advanced analytics. There are tips and tools for creating a strategic analytic culture as opposed to silos of analytic competence.

The Analytic Hospitality Executive: Implementing Data Analytics in Hotels and Casinos can help to identify which data sources will provide the most value to an organization and shows how to turn that information into crucial insights that will increase the top and bottom lines.