Revenue Management

eCornell Study Argues for a Firm, Strategic Approach to Hotel Pricing

This study explores the effects of competitor pricing levels on relative revenue on a sample of over 4,000 hotels in Europe over a ten-year period (2004–2013). Hotels  in this European sample, which included both independent and chain-affiliated properties, achieved higher revenue per available room (RevPAR) than direct competitors when they positioned their hotels with comparatively higher […]

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Skyscanner’s Legal Victory Could Lead to the End of Hotel Rate Parity Agreements with Booking.com & all OTAs

  The Scotland-based metasearch company argued that the original ruling by Britain’s Office of Fair Trading restricted consumer access to discounts. Source: www.dailymail.co.uk Skyscanner took its case to the UK Competition Appeal Tribunal (CAT), which ruled in its favour and sent the case back to the CMA. CMA had accepted commitments from Expedia, Booking.com and Intercontinental

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Predicting the Future Sales is Hard, Try Anticipating Them Instead

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With the advent of Big Data and faster and better data processing capabilities we are seeing a surge in predictive intelligence solutions; everyone is trying to predict the future to their advantage. The question though is, are they? Can the future be predicted? The main issue I have with predictive intelligence and “the next best …

Source: www.enterpriseirregulars.com

The biggest shortcoming of predictive intelligence is that it looks for buying patterns to make “relevant” offers. The idea is that if it happened once in the past, will happen again in the same way.
The main problem of Predictive intelligence is that it is not possible to complete replicate twice the context and intent, the most advanced predictors of behavior, in which the buyer acts.

A new model, anticipatory intelligence, tries to account for context, intent, but more importantly for the many different possible scenarios – instead of next best step, tries to derive next most likely scenarios all with different likelihood of happening, and present them all as anticipatory steps.

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