Over the last 10 weeks at the Analytic Hospitality Executive, we have explored the topic of Revenue Management and Price Optimization for the hospitality and travel industries.  We’ve looked at how changes in the market, the changing needs of revenue managers and advances in technologies have put pressure on traditional [...]

In my last post, I explored the importance of factoring price elasticity into a revenue management approach.  This week, we’re going to explore the importance of accounting for competitor pricing. In today’s market, consumers have an unprecedented ability to shop around, with the internet now comprising approximately 35% of all [...]

In my post in September on Why revenue management analytics are becoming outdated, I made note of several important limitations in the traditional revenue management approach.  Today, I’m going to focus on just one of these issues: price elasticity. Why Price Elasticity is So Important As I noted back in [...]

Revenue management has always been a “big data” problem.  The level of detail needed to make pricing recommendations means even a small chain’s revenue management system runs hundreds of thousands of forecasts every night.  These forecasts then are used as inputs for a massive optimization problem. Originally the problem was [...]

Those of you who have been loyally following “The Analytic Hospitality Executive” know that we haven’t typically talked about problems without presenting solutions.  You may have been surprised to see us discussing all of these issues with “today’s” revenue management systems, painting such a dire picture of the state of [...]

Over the last several weeks, The Analytic Hospitality Executive has been exploring why we feel that today’s revenue management systems aren’t working anymore.  Two weeks ago, Kelly wrote about how the market has changed.  Last week, I wrote about why revenue management analytics are becoming outdated.  Today, I’m going to [...]

Over the last several weeks, The Analytic Hospitality Executive has been exploring why we feel that today’s revenue management systems aren’t working anymore.  Today, I’m going to delve into the limitations prevalent in today’s revenue management solutions.  Before we review the common limitations in revenue management systems, it’s important to [...]