It encompass a few functions that leverage similar data for a similar purpose in the hotel and casino business. Departments like finance and development that are responsible for analyzing the performance of units, brands, or regions, and identifying areas of opportunity.

They can be responsible for developing new units or new locations, as well as reporting on the overall performance of the enterprise to stakeholders or shareholders

The performance management functions live and die by core industry metrics like

for the performance analysis function are similar to the emerging data sources that are of interest to other hotel departments

can be used to understand what factors are related to key outcomes and regression

can determine whether differences in performance are statistically significant

in performance analysis is typically performed at a higher level and over a longer range than revenue management forecasting, which is why a revenue management-developed forecast is not generally a substitute for a performance forecast

to review performance data against the characteristics of existing properties to predict performance of a new location.

is very useful in site selection, where the model will predict the performance of a specific brand or type of hotel in that site based on relevant characteristics, or determine the ideal size and type of hotel that would best exploit the potential of the te

There are many constraints in the performance analysis problem, like budgets, agreements with existing franchisees and ownership groups about cannibalization, potential of area-demand generators, and competitive factors.

could help hotels decide where they want to invest with what brands or locations, given the operating constraints

Since performance analysis is so heavily connected with data and reporting. The ideal for performance management is to be able to rapidly produce answers to business questions that impact company strategy or investor relations

At the lower end of sophistication, hospitality and gaming companies are operating in a highly manual performance analysis environment

They use Excel extensively as a data aggregation and reporting tool. It takes a long time to create operating reports

The average hotel or casino company has or is in the process of creating a data warehouse and a data management strategy that includes some type of data governance.

have invested in a data visualization tool (sometimes multiple tools), and are using them to automate and speed up the process of creating key operating reports.

Overloaded information technology (IT) departments are still a roadblock in many cases, so any analyses outside of routine reporting tasks can still be manual, and still take time.

already have a data warehouse in place, and in some cases are going through a modernization effort to make the environment more flexible and responsive.

They could be investigating data virtualization and big data strategies like Hadoop. They extensively use data visualization tools, and have a process in place for responsive ad hoc analyses.

Performance analysis functions are using advanced analytic techniques like statistical modeling forecasting, and predictive analytics. They are building robust models to drive their development strategies. I haven't spoken much about IT in this book so far (this is not an accident, the book is targeted at the business).

The performance management functions live and die by core industry metrics like occupancy, average daily rate (ADR), and revenue per available room (RevPAR

In order to derive bottom-line metrics, they collect detailed information about cost structures of properties

in general are important indicators of potential future performance.