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Why Revenue Management Needs 'Big Analytics'
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Re: An overhaul that is long overdue
  • 10/23/2012 1:27:14 PM
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Noreen,

I'm very clad you asked!!  In addition to the improvements gained by taking advantage of the latest technology, I think we'll see pricing for hospitality and travel move from being a strictly tactical short-term revenue maximizing strategy to part of a longer-term business strategy.  Current revenue management technology spits out a set of prices to charge over the booking horizon each day - which certainly will provide a revenue advantage.  However, I see companies also using demand modeling, forecasting and optimziation to support broader strategies like competitive positioning or market share.  This means that inputs and outputs will change, or the way the usesr consumes information must be adjusted - but with a flexible solution, this is easily accomodated.

In any case, it's an exciting time to be in hospitality and travel revenue management!

Kelly

 

Re: An overhaul that is long overdue
  • 10/23/2012 7:25:24 AM
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What do you see as the next big thing in this area Kelly?

Re: An overhaul that is long overdue
  • 10/22/2012 10:51:05 AM
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Pierre,

Thanks for your comment.  I am very excited about the potential this new approach will bring to pricing for hospitality and travel, although the concepts of using all available data, taking advantage of high performance analytics like forecasting or optimization,  certainly applies to any industry with "big data" and complex problems (so I guess that means pretty much everyone, right?)!

Kelly

Re: An overhaul that is long overdue
  • 10/20/2012 10:39:15 PM
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One more item to share - I did a business book review for Small Business Trends. The book was called Islands of Profit In A Sea of Red Ink. It covered the concept that not every revenue is profitable - a compliment to the points raised about revenue management and analytics.  Companies should realize that better business model decisions results from analyzing revenue management and reviewing how a business operates when revenue management is applied.

http://smallbiztrends.com/2010/10/island-of-profit-in-a-sea-of-red-ink-a-workplan-for-profits-when-growth-is-hard.html

An overhaul that is long overdue
  • 10/19/2012 6:42:47 PM
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I think forecasting was always on the verge of being overhauled, and analytics' increasing capability of evaluating metrics against business operations will accelerate that overhaul certainly. Thank you for a thoughtful post on where concepts such as revenue management can be better managed with analytics.



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