In pricing and revenue management, hedging your bets with a tried-and-true process may actually be riskier than taking a chance on something different. It sounds counterintuitive, but the fact is that the conservative route to pricing practices is costing big hospitality firms millions in revenue, risking their future viability.
Over the past few decades most hotel chains have adopted some form of automated revenue management (RM) system. But there are still some medium and large chains that have not. Worse yet, as some of these chains churned through acquisitions and ownership changes, their RM systems were abandoned or shut down. During the last decade's brand consolidations, industry realignment and ownership changes, business intelligence (BI) tools were growing in maturity and sophistication.
Fifteen years ago, when I was a brand new analyst learning pricing at a major airline company, business intelligence tools were more humbly known as “reports.” Woe to the analyst assigned to produce reports — it was an arduous and time-consuming task.
he old paper BI reports gathering dust in binders on an executive's shelf. Where there used to be a data warehouse, best-in-class companies now have a data “convenience store” that enables all manner of fancy, web-based, interactive, real-time dashboards ...