How to use ChatGPT as an AI Hotel Pricing Assistant in the Hospitality industry - Part 1

AI-Powered Reservation Analysis: Visualize Patterns for Smarter Operations

In the hospitality industry, understanding the patterns within your reservation data is crucial for making informed decisions. However, analyzing this data can be a tedious and time-consuming process. That's where AI-powered analysis tools like ChatGPT come in. By feeding your reservation data into ChatGPT, it can uncover trends, generate insightful visualizations, and answer complex questions about your bookings. This allows you to identify peak periods, understand guest preferences, optimize pricing, and ultimately streamline your operations for greater efficiency and profitability.

Understanding the intricate patterns within your reservation data is the key to making smarter, more profitable decisions for your accommodation business. But, sifting through spreadsheets and manually identifying trends can be overwhelming. This is where the power of ChatGPT 4.0's Data Analyst module shines. In this article, I'll demonstrate how to transform this cutting-edge large language model into your virtual data analyst. Using a sample dataset with fake guest details, I'll guide you through asking insightful questions to ChatGPT. We'll explore how it can analyze your data, uncover hidden trends, generate visualizations, and even create tailored reports. I'll share practical questions and the valuable insights they reveal – insights that anyone involved in hotel pricing strategies could benefit from. Additionally, I'll discuss the pros and cons of using this module and offer solutions to address any potential shortcomings.

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Here's a sneak peek at what you can achieve with ChatGPT with a single question:

• Unlock smarter pricing, spot hidden trends, and streamline operations with AI-powered analytics. Could a single question boost your hotel's revenue efficiency? Let's put ChatGPT to the test.

Uncover hidden patterns: The heatmap above depicts a sample reservation dataset for March 2024. At first glance, weekends appear busier than weekdays. But what if you could delve deeper? ChatGPT can analyze your data to reveal patterns you might miss, such as:

• Peak days of the week: Are there specific weekdays that consistently see higher occupancy rates?
• Popular combinations of arrival and departure days: Do some guests tend to book longer stays, arriving on Fridays and departing on Tuesdays?
• Seasonal trends: How do booking patterns differ between peak and off-peak seasons?

By uncovering these patterns, you can tailor your pricing strategies to capture more revenue during high-demand periods and attract bookings during slower times.

These are just a few examples, and there's so much more to explore! In the following sections, we'll delve into 5+ practical questions you can ask ChatGPT to unlock valuable insights from your hotel reservation data.

• All Reservation data is artificially generated. Feel free to subscribe below for access to the sample data and experiment with ChatGPT yourself.
• Start analyzing immediately. Simply upload your reservation data to ChatGPT 4.0's Data Analyst module (or the general chat) and begin asking questions.
• ChatGPT 4.0 is the paid version of the popular Large Language Model (LLM). If you're interested in a free alternative tailored specifically for hotel data, pricing, analytics, and reporting, please get in touch here.

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Ready to analyze your own data? Get the same reservation dataset used in this example by filling out the form below.

Streamline Daily Operations with AI-powered pick-up Reports

1 Question: "Can you prepare a reservations heatmap organized by the day of the week and week of the month for March 2024?"

We will start by asking ChatGPT the question above which produces approximately 50 line codes that would have taken 15-20 minutes for an intermediate data analyst to produce who has an average £30 per hour rate. Alternatively, you can own your data and actually have a proprietary, of course, not optimised code but still open source/ free analytics solution to analyse your data which I think it is extremely impressive.

It's quite impressive how the AI automatically analyzes unfamiliar datasets and columns, successfully identifying keywords and relating them to the relevant data. Like a skilled analyst, it formulates a clear plan of how to tackle the task at hand. This transparency, rather than a black-box result, is incredibly helpful. It offers a look into best practices, benefiting even those without extensive data analysis experience. Revenue managers and others responsible for hotel pricing could greatly benefit from this AI collaboration, gaining deeper insights to support their strategic and tactical pricing decisions.

Have a look at the actual example response after asking just a single question based on the sample data provided:

ChatGPT Response:

I'll start by examining the data in the provided Excel file to understand its structure. Then, I'll proceed to create the reservations heatmap organized by the day of the week and week of the month for March 2024. Let's take a look at the contents of the file first.

"Finished Analysing - code Segment"

The dataset includes various details about hotel bookings, including the date of arrival and the booking segment. To create the reservations heatmap organized by the day of the week and week of the month for March 2024, I will:

1. Filter the data for reservations in March 2024.
2. Determine the day of the week and the week of the month for each reservation.
3. Aggregate the data to count the number of reservations for each combination of day of the week and week of the month.
4. Create a heatmap based on this aggregated data.

Let's proceed with these steps. ​

We can see that has prepared a visually impressive chart that simplifies with color coding to see the volume of reservations which opens the stage for more drill-down questions where the actual power of a human revenue manager or AI pricing assistant is based upon.

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Here's the reservations heatmap for March 2024, organized by the day of the week and week of the month. This visualization helps you quickly identify patterns or trends in the reservation data, such as which days of the week or which weeks of the month are most popular for reservations.

Question: Can you prepare a reservations heatmap chart per check-in date for this month?

This is very similar visualisation but focuses on the day of the month rather then the week as before opening a slightly different insight where it is slightly difficult to identify the weekly seasonality for the reservations.

Here's the reservations heatmap per check-in date for this month. Each cell represents a day of the month, and the color intensity reflects the number of reservations for that day, with annotations showing the exact number of reservations. This visualization helps to easily identify which days had higher or lower booking volumes. If you need further analysis or another type of visualization, feel free to let me know!

Can you prepare reservations per check-in for the date of the week heatmap for this month March 2024?

It is great to see that the ChatGPT prepares the data and displays it even before visualising and also it is able to suggest and filter canceled reservations which is quite impressive for produce an accurate reservations report

Here's the heatmap representing the reservations per check-in day of the week for March 2024. This visualization makes it easy to see which days of the week were more popular for check-ins, with Sunday and Wednesday seeing the highest number of reservations, while Monday had the fewest.

1.1 Drill Down Question: An immediate question comes to mind: how can we improve the reservation volume on quieter days e.g. Monday and Tuesday

After asking our question, ChatGPT's general response delivers insights that can be directly applied by revenue management and pricing professionals of all experience levels.

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ChatGPT response to the question:

Improving reservation volume on quieter days like Monday and Tuesday can be crucial for maximizing revenue and improving occupancy rates. Here are some strategies that can help:

1. Promotional Offers
Special Rates: Offer discounted rates for stays that include these quieter nights.
Value-Added Packages: Create packages that add value without significantly reducing the price, such as including a free breakfast, parking, or a room upgrade.
2. Targeted Marketing Campaigns
Segmentation: Use customer data to identify and target segments more likely to book on these days, such as business travelers or locals looking for a short staycation.
Personalized Offers: Send personalized emails or messages to past guests with offers tailored to their preferences, encouraging them to book during these off-peak times.
3. Leverage Business Travelers
Corporate Deals: Establish or enhance corporate partnerships to offer special rates for business travelers, encouraging companies to book their employees' stays on these days.
Conferences and Events: Host or partner with events and conferences that start on Monday or Tuesday, ensuring attendees stay over these days.
4. Exclusive Experiences
Special Events: Organize exclusive events or experiences only available on these quieter nights, such as guest chef dinners, live entertainment, or unique local tours.
Wellness Packages: Offer wellness packages that include spa treatments, yoga classes, or meditation sessions, appealing to guests looking for a relaxing getaway.
5. Loyalty Programs
Bonus Points: Offer extra loyalty points for bookings that include these less busy nights, encouraging repeat customers to take advantage of the offer.
Early Check-In/Late Check-Out: Provide perks like early check-in or late check-out for guests booking on these days, adding value to their stay.
6. Utilize Social Media and Online Marketing
Social Media Campaigns: Create engaging content that highlights the benefits of staying during these days, such as less crowded local attractions or special amenities.
Influencer Partnerships: Partner with influencers to showcase the unique experiences available on quieter days, reaching a wider audience.
7. Feedback and Continuous Improvement
Guest Feedback: Collect and analyze feedback from guests who stay on these quieter nights to understand their needs and improve offerings accordingly.
Continuous Monitoring: Regularly review booking patterns and adjust strategies as needed based on what works best.
Implementing a combination of these strategies can help shift demand to quieter days, improving overall occupancy and revenue. It's also important to continuously assess the effectiveness of these strategies and adapt them based on changing market conditions and guest feedback.

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While personalized insights tailored to your specific data and hotel location would offer directly actionable strategies, ChatGPT's general response can still be incredibly valuable. It encourages you to think outside the box, potentially leading to innovative pricing tactics. Of course, for the deepest insights, tracking the results of these new strategies is key.

Track Daily Reservations Pick-Up by Arrival Date to Optimize Revenue and Operations

Analyzing daily reservation pick-up by arrival date is a powerful technique for optimizing both revenue and operations. By pinpointing which future dates see a surge in new bookings. By keeping a close eye on the daily pick-up by arrival date, you'll transform static reservation data into dynamic insights. This enables you to price intelligently, allocate resources effectively, and ultimately achieve greater profitability for your hotel.

Question: "Can you prepare a tabular format report with the total number of new reservations confirmed yesterday, March 17th and not canceled? Filter only the columns columns confirmed date, check in, check out, guest name, email, revenue and length of stay"

Effortless Daily Reporting: A Time-Saving Advantage

Imagine the power of generating a daily report with just a few questions to ChatGPT, eliminating the need for a revenue manager to spend 15-20 minutes manually filtering tables through the PMS (Property Management System). This translates to real time savings that can be directed towards more strategic tasks.

Instant Insights: Actionable Information at Your Fingertips

Gone are the days of waiting for reports to be generated. ChatGPT delivers real-time insights, allowing you to make data-driven decisions on the spot. This agility is especially valuable for tasks like:

• Monitoring Check-Ins: Quickly assess today's check-in activity, including the number of guests arriving and their room assignments.
• Identifying Special Requests: Easily identify guests with special requests, ensuring a smooth and personalized check-in experience.
• Optimizing Revenue: With real-time occupancy data, you can identify potential last-minute upsell opportunities to maximize revenue.

Based on the question above below is the response that it is cleaning and standardising the uploaded spreadsheet data and it provides a clear answer ready to be used or even printed.

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Question: "Convert into a PDF report in a landscape mode."

Let's say we would like to print the report then we could just ask for that and we will receive the output below with an instant link available to download. However we can notice the formatting is off and the dates include value of 00:00:00 which actually it is not relevant for us. Follow up to the next question that we ask to fix that below.

Question: "can you remove time from the date columns and increase the guest_name and email column width to fit text?"

As we would have asked anybody to help us, we can ask ChatGPT which provides immediate fix and actually perfect report to print or share if relevant for the hotel operations but this is really a great option to have. Especially, not worrying if you have filtered the correct data or spend another 20-30 min trying to figure out how to format word or excel file in order to print the correct formatting of file. I would be honest and say that this is really impressive and I know of my experience that a lot of accommodation providers use lists that they are even required to have a hard copy and this could be really a huge efficiency gain for them.

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Streamlined Communication: Sharing Information with Ease

The reports generated by ChatGPT are clear and concise, making it easy to share information with various departments, including the reception desk. This ensures everyone on your team has a clear understanding of daily reservations and guest arrivals, fostering smooth communication and efficient operations.

In essence, ChatGPT empowers revenue managers and hotel managers to transform daily reporting from a time-consuming chore into a quick and informative process. This frees up valuable time for strategic thinking while ensuring everyone has access to the most up-to-date and accurate data for informed decision-making.

Summary

In today's competitive hospitality landscape, harnessing data-driven insights is essential for optimizing pricing, revenue, and overall efficiency. ChatGPT, a cutting-edge AI language model, offers hoteliers a powerful virtual assistant to streamline analytics and uncover hidden patterns within their reservation data. Beyond analysis, ChatGPT enhances daily operations by generating accurate, real-time reports that summarize check-ins, special requests, and potential upsell opportunities. While there are potential shortcomings, the paid version (ChatGPT 4.0) includes a 'Data Analyst' module designed for complex tasks. Additionally, free alternatives optimized for hotel-specific data and analytics can be explored.

This article, the first in a 10-part series, explores how revenue management professionals can leverage  ChatGPT to transform complex datasets into actionable insights.

Gain the competitive edge in a data-driven market. Our myData AI revenue and profit assistant offers the hotel-specific insights such as revenue management, finance, data unification and analytics ChatGPT lacks. Experience the difference – register here for a priority waitlist and have the opportunity to be one of the first to use it.

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Ready to analyze your own data? Get the same reservation dataset used in this example by filling out the form below.

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Q&A

What does data ownership mean for AI in the hospitality industry?

Data ownership is critical in the hospitality industry because it empowers AI tools to truly understand your guests' preferences, tailor pricing strategies to your specific market, and unlock maximum profitability. Owning this data gives you control over how it's used, ensuring insights remain confidential and competitive. While tools like ChatGPT can be useful for general analysis, the most powerful applications of AI for hotels require analyzing your own unique reservation data, highlighting the importance of choosing AI solutions that prioritize data ownership.

How can AI transform my hotel's operations?

AI can transform your hotel's operations by streamlining data analysis and automating repetitive tasks. This frees up staff for better guest engagement. Like the examples in the article, AI can analyze your reservations to identify optimal arrival/departure patterns, forecast occupancy for staffing and resource allocation, and generate insightful reports on check-ins, special requests, and potential opportunities. Using tools like ChatGPT demonstrates AI's potential, but for the greatest impact, consider AI solutions that can handle your hotel's own data, ensuring insights are tailored to your unique needs.

What role does AI play in revenue management within the hotel industry?

AI is a game-changer for hotel revenue management. It goes beyond the basic data analysis demonstrated in the article, delivering dynamic pricing strategies that adjust in real-time based on demand, market trends, and even competitor analysis. AI can also assess the performance of different booking channels (website, OTAs, etc.), helping you optimize your marketing efforts for maximum ROI. Importantly, using AI tools that let you own your data gives you the foundation for these advanced strategies, ensuring your competitive insights stay in-house.

How can AI enhance the guest experience while benefiting the hotel?

AI enables personalized, seamless guest experiences throughout the hospitality industry. From pre-arrival recommendations to in-room AI assistants and tailored offers, AI creates unique touchpoints. It allows hotels to anticipate guest needs proactively, leading to increased satisfaction and loyalty.

What is the future of AI in hospitality pricing strategies?

The rise of AI in hospitality shows no signs of slowing down.  Beyond the pricing transformation we've discussed, hotels will continue integrating AI technologies to personalize guest experiences, optimize workforce management, and drive sustainability initiatives. AI-powered voice recognition and advanced chatbot solutions for guest communication are just a few of the exciting innovations on the horizon.  This highlights how AI's impact extends far beyond analytics,  becoming integrated into every aspect of hotel operations. Additionally, the 'democratization' of data – where sophisticated analysis tools once exclusive to large chains are put in the hands of smaller hoteliers – will level the playing field, increasing the need for all hotels to embrace AI-driven pricing.

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