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Why So Little Testing of Revenue Management Strategies in Hotels?

Revenue Hub
Revenue Hub
Episode • Nov 12, 2020 • 1h 17m
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:






  •  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)



 

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