Todo se basa en una sencilla teoría económica: cuando los precios de los productos aumentan, la gente no está dispuesta a pagarlos y, en consecuencia, la demanda se va a pique; evidentemente, sucede el efecto contrario cuando se reducen. No obstante, el mecanismo que se activa al modificar dicho valor
Tag: Revenue Management and Price Optimization
2015 was a busy year for the hotel industry. ADR, Occupancy and RevPAR achieved record highs. We saw extensive merger and acquisition activity, culminating at the end of the year with the acquisition of Starwood by Marriot and Fairmont by Accor (and don’t forget Expedia’s Orbitz acquisition, of course). Favorable
As consumers have moved to digital channels and digital interactions, competition for the hotel consumer has increased dramatically. Now, hotels not only compete with each other, but also with third-party online distributors, and even new disruptors from the sharing economy like AirBnB. However, hotels have one advantage that these other
Revenue management is a relatively young discipline in the hotel industry. Hotels only started to broadly adopt revenue management processes and systems in the late 90s and early 2000s. While the discipline has achieved success and gained visibility over the last decade and a half, it is still relatively new
with Natalie Osborn, Senior Industry Consultant, Hospitality and Gaming Practice, SAS This week, we continue our fall “back to the basics” refresher series on analytics for hoteliers. Last week, in part one, Natalie and I reviewed the analytic methods that can be utilized by hoteliers. This week we will explore
with Natalie Osborn, Senior Industry Consultant, Hospitality and Gaming Practice, SAS. It’s back to school time, and back to school reminds me of getting back to the basics. So, we thought we’d start the fall with a “back to the basics” refresher series on analytics. To accomplish this, Natalie and
By now you have seen dozens of articles with trends and predictions for what the hospitality industry should expect in 2015. I’m not going to add to those, or rehash them exhaustively here. You’ve all probably read them yourself and gathered the highlights: optimism, more acquisitions, transaction volumes will stay
Well, Analytic Hospitality Executives, the year has once again flown by, and here we sit just before the holidays looking back on 2014, and figuring out what it all means for 2015. I traveled even more than usual this year (if that’s even possible), spending a significant amount of time
Big data is of no use unless you can turn it into information and insight. For that you need big analytics. Every piece of the analytics cycle has been impacted by big data, from reporting, with the need to quickly render reports from billions of rows of data, through advanced
This week I’m going to “fill in” for Natalie to complete our series on “What can Hotels learn from Casinos”? (Look for parts 1 and 2 here and here, respectively) Today I’m going to address pricing. We all know that great entertainment comes at a price, and we also know
Next week I will be presenting at the Cornell Hospitality Research Summit on big data and revenue management. In preparation for the Summit, I have recorded a short presentation that outlines how big data can help augment revenue management. Alex Dietz talks about how big data can help revenue management.
Next week Breffni Noone, Associate Professor, The Pennsylvania State University and I will be hosting a discussion at the Cornell Hospitality Research Summit on how user generated content impacts the purchase choices of the unmanaged business traveler. The discussion will take place on Monday October 13 at 2:15pm in Statler 396.
With the growing popularity and availability of online reviews and ratings, consumers have more information than ever before when purchasing a hotel stay. In order to build effective pricing and positioning strategies, hotel managers need to understand how consumers are using all of this user generated content with price to
Over the last few posts, Lee Ann has been exploring how to marry business strategy with day to day pricing decisions. This week, I’m going to take this discussion in another direction by describing how pricing decisions are made, and the importance of strategic pricing in another industry – sports.
Last week in my post, Revenue Management vs. Price Optimization: Part One, I explored the practice of practice of hospitality revenue management, its origins in the airlines and how it was changed for use in the hospitality industry. This week I will explore how price optimization has evolved and how
Here at the Analytic Hospitality Executive, we are often asked the question “How is price optimization different from revenue management?” It’s a simple question that has become increasingly difficult to answer – largely due to the evolution of revenue management practices, and the very definition of revenue management. In this