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Hidden Costs of Inaccurate Reporting in Hotels

Samantha Sum
Business Development Consultant, Hospitality at Oracle

Think about the last time when the revenue and occupancy forecast for the hotel was incorrect.

Have you faced times when you’ve lost potential room revenue to a competitor? Did improper management of perishable inventory cause high food wastage? How did you explain the inaccurate forecast to your management team or owners?

There were probably many negative implications and hidden costs caused by inaccurate reporting.

In my conversations with hotel managers and owners, I’ve found that reporting accuracy at all levels of management is one of the main challenges faced by hoteliers. Below are key areas where accurate reporting can enhance hotel performance beyond profit margins:

Forecasting for revenue management purposes

Forecasting is not just about the prediction of hotel performance. It involves skilled operation and revenue managers who analyze a combination of data sets to interpret and make informed decisions. Therefore, it is the key driver for price and inventory management decisions. An inaccurate forecast may lead to poor management decisions and potentially reduced profit margins. An accurate forecast of hotel occupancy and room revenue, however, empowers the hotel/revenue manager to adjust price strategies based on demand (yield) with the aim to maximize revenue and minimize costs.

Resource utilization and allocation

An incorrect prediction of future demand may lead to ineffective use of labor resources and high food wastage. In contrast, an accurate forecast allows managers to allocate sufficient staff and adequate resources to labor-intensive departments (such as housekeeping) to ensure smooth operations during busy periods. In addition, an up-to-date forecast allows chefs and restaurant managers to track perishable inventory effectively and minimize food wastage.

Decision making

Inaccurate reporting from the management team can trigger a domino effect to all hotel departments. One incorrect data or formula can affect the entire report, creating a false portrayal of the business that could lead to poor decisions and negatively affect performance.

Technology advancements have transitioned many hotels from tedious, manual reporting processes on excel sheets to comprehensive reporting functionality in property management systems, allowing hoteliers to generate reports with a few clicks.

While working at a hotel, I found that most hoteliers are often overwhelmed with information they are unable to process and analyze, making it difficult, if not impossible, to execute decisions effectively. In addition, most users are not aware of the full reporting capability that property management systems (PMS) can offer in providing an accurate forecast.

Join us at Oracle Hospitality Connect APAC 2019 where we will show you the untapped reporting capabilities that most hoteliers often miss. We’ll also demonstrate the functionalities in the next-generation reporting solution OPERA Reporting & Analytics. We are confident that this new tool will empower hoteliers to make better-informed decisions, improve operational efficiencies and, ultimately, create exceptional guest experiences.


Oracle Hospitality brings over 40 years of experience in providing technology solutions to independent hoteliers, global and regional chains, gaming, and cruise lines. Our cloud-based, mobile-enabled solutions for property management, point-of-sale, distribution, and reporting and analytics lower IT costs and maximize business agility. Oracle Hospitality’s OPERA is recognized globally as the leading property management platform and offers open APIs to serve as a platform for industry innovation. Learn more at www.oracle.com/Hospitality. Get specific product information as quick as clicking right here.

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