Why So Little Testing of Revenue Management Strategies in Hotels?
Today we are joined by 3 Guests:
- David Lopez – Chief Science Officer at Pace
- Maxime Cohen – Associate Professor at McGill University
- Nancy Pyron – Analytics, Strategic, and Organizational Consultant at NMP Consulting
Today we discuss elements of a whitepaper our 3 guests have recently authored looking at Statistical Field Experimentation (or lack thereof) for testing revenue management strategies in the hospitality industry.
We touch on:
We touch on:
- What Field Experimentation is
- Indicative scenarios where it could prove valuable
- Practical challenges faced
- Experimental Designs to address these challenges
Here are the chapters:
- Guest Intros (1:30)
- Rationale for writing the whitepaper (3:48)
- Introduction to Statistical Field Experimentation (6:55)
- Beneficial Scenario 1 – Ancillary Pricing (17:20)
- Beneficial Scenario 2 – Distribution Channel Optimisation (20:06)
- Beneficial Scenario 3 – Promotion Success (24:00)
- Beneficial Scenario 4 – Choice of RMS (31:08)
- Beneficial Scenario 5 – Updating Revenue Management Algorithms (38:57)
- Beneficial Scenario 6 – Price Update Frequency (42:23)
- 3 Core Practical Challenges (51:09)
- Experimental Design to Address the Challenges (1:05:55)
- Summary of areas discussed (1:15:55)
- What do we hope the whitepaper will achieve (1:16:21)
- Wrap up (1:16:48)
WATCH NEXT (A few of our other videos):
- Want your Revenue Manager to be Strategic .. Do You Have an RMS? https://youtu.be/m_vcVchwFZs
- Revenue Manager Crisis Checklist https://youtu.be/4h9v8SbpdMw
- Now is the time for hotels to bring revenue and marketing together https://youtu.be/6QjKDgpnBKk
- How will the RMS evolve to move revenue management forward https://youtu.be/9ijlPw-tg7Y
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