Hotel revenue management and use of analytics for room sales has remained largely unchanged for decades since the early 1980s when hotels started looking at yield and how they could optimize the revenue each room could generate. By the mid-1990’s, Marriott’s successful execution of revenue management strategies were adding between $150 — $200 million in annual revenue and thus marked the beginning of data intelligence to drive new revenue.
Fast forward to 2016 — and the part insight, part intuition, part data-driven approach to revenue management largely hasn’t moved into the new age of big data for most hoteliers.
There is a new application of data modelling hotels are utilizing to see big gains in RevPAR (Revenue Per Available Room) and this comes through price differentiation. That is — dynamically displaying different room rates for every person that views your hotel search price query.
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