It is not enough to know who your high-rate paying guests are, since your best guests may be spreading their spending across all the revenue-generating outlets at your property. These guests expect you to know who they are and what they like. They do not want to be blanketed with irrelevant offers, but will respond when you personalize interactions. Historical information gives a limited picture of guest value, but when augmented with predictive analytics, can provide a powerful tool to predict behavior. If you know what your guests are likely to do before they do it, you can take steps to encourage or discourage behaviors. All of these challenges are opportunities to “surprise and delight” your guests, while increasing the economic value of your guest base. Careful analysis of your guest’s behavior can uncover the main drivers of guest value. Your most valuable guests will dictate the elements of your offering that drive their spending. Is it the monthly restaurant events, the spa offerings or, in the case of a casino, a complimentary room offer? Each of these elements drives purchase behavior, but not all of them may encourage a guest to spend more, and spend more profitably. As these drivers are identified, your operation can adjust to make them more accessible and/or more profitable. Should you have a restaurant event next month? Should you reserve some tables at the high-end steakhouse during peak dining hours for your most valuable patrons? Should you extend the spa or fitness center’s operating hours? Do you need more package options? Are there enough rooms of a certain type? Once the value drivers are established, forecasting will help predict the impact on revenue and profitability far into the future, in plenty of time to take corrective action. Get the full story at The Analytic Hospitality Executive