Leveraging Data Analytics in the Hospitality Industry
With quickly evolving technology developments, business owners, chief financial officers (CFOs), and controllers are inundated with information on artificial intelligence, machine learning, and data analytics and are challenged with how to best use them within their businesses. One industry that got a leg up on this trend years ago is the hospitality industry. If financial consultants and accountants could give an industry a five-star rating when it comes to their use of data, hotel and restaurant businesses would certainly receive one.
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In Citrin Cooperman’s Private Company Performance Report, 87% of restaurant and hospitality executives reported that their business is currently implementing, or has fully implemented, tools and processes which will improve or have already improved their data analytics.
The hospitality industry has stood apart from most other industry segments since the 1920s when the first Uniform System of Accounts for the Lodging Industry (USALI) was introduced in New York. This standardized the chart of accounts across all lodging properties and is still the gold standard for the industry today when it comes to preparing and reporting to franchises, lenders, and management companies. The USALI is now on its 11th edition and is continually updated for changes in generally accepted accounting principles (GAAP).
Utilizing data analytics can provide a business with ample information in order to keep its functions consistent and allow leadership to better predict upcoming issues. Data analytics in hospitality provides benchmarking abilities unseen in other industries. Average occupancy and average daily rates segregated by location, brand, level of service, and many more analytics and comparisons can be created due to the consistency in accounting. This allows the industry to be at the forefront when it comes to data analytics and enables organizations to utilize all that new technology has to offer. Companies and investors can leverage data analytics to make informed decisions to ensure their business stays ahead of future potential pitfalls.
Citrin Cooperman is proud to be home to a nationally recognized Restaurants and Hospitality Industry Practice comprised of dedicated professionals that are well-equipped to help your business achieve its strategic vision. If you are interested in implementing data analytics to elevate your business functions or are considering upgrading your current system, please contact Jennifer Hogencamp at jhogencamp@citrincooperman.com or info@citrincooperman.com.
Citrin Cooperman is the brand under which Citrin Cooperman & Company, LLP, a licensed independent CPA firm, and Citrin Cooperman Advisors LLC serve clients’ business needs. The two firms operate as separate legal entities in an alternative practice structure. Citrin Cooperman is an independent member of Moore North America, which is itself a regional member of Moore Global Network Limited (MGNL).
Jennifer Hogencamp is a partner and the firm’s Hotels and Lodging Industry Practice Leader. She has 25 years of public accounting experience providing audit services to a variety of clients, including those in the hospitality (hotels and restaurants) industry.
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