Data analytics can help hospitality bounce back
Using data analytics can help hospitality bounce back from Covid-19, say leading tax and advisory firm Blick Rothenberg
David Hough an IT partner at the firm said: “ This week enables a greater level of reopening for the sector, but it remains impacted by social distancing restrictions , and the threat of inflation, so using data analytics could help sector bounce back especially single site businesses.”
He added: “We know this is a difficult for the hospitality sector and businesses will need to find new ways to generate a competitive edge. Large operators have been using data analytics increasingly for years to improve profitability. This includes dynamic pricing by hotels, managing the cost of waste through activity monitoring and smart sensors, brand protection through analysis of online reviews and better management information.”
David said: “Smaller companies, particularly single site businesses, are yet to take advantage of this technology. There is severe cash flow pressure on the sector, but data analytics can provide a competitive edge that feeds directly, and quickly, into margins.
For example, a restaurant that has data on what regular customers order can target their marketing, or if they know they true value of their wastage they can order more effectively”
David said: “ The good thing is capital expenditure on updating IT systems is allowable for tax, and the current “super deduction” rules in place until March 2023 mean that an enhanced allowance of 130% can be obtained on hardware reducing the impact on cash flow.
“ The Help to Grow: Digital scheme launches in the Autumn which will provide further guidance on how using technology can help small businesses. We know that the pandemic has fast tracked the emergence of technology but much of the hospitality sector has been forced to close whilst other industries have pivoted their approach. This is the right time to seek a different competitive edge.”
He added: “ March ONS statistics showed that those employees of single site business were four times more likely to be on furlough within hospitality than compared to the national average, demonstrating the severe impact of Covid-19 on the sector.”
