IHG works on new price optimisation module

InterContinental Hotels Group has launched a new price optimisation module that integrates local market demand forecasting, publicly available competitive data analysis and price sensitivity modeling to drive optimal revenue decisions for its hotels.

Published: 11 Sep 2009

InterContinental Hotels Group has launched a new price optimisation module that integrates local market demand forecasting, publicly available competitive data analysis and price sensitivity modeling to drive optimal revenue decisions for its hotels.

The module, developed by IHG (in consultation with Revenue Analytics’ Bob Cross), has a price sensitive modeling process that allows the system to continuously balance rates, occupancy and guest pricing preferences in a way that increases revenue opportunities regardless of demand.

The module is the latest addition to IHG’s PERFORMSM revenue management system.

“The module strengthens the ability to make pricing decisions that bolster bottom line results at our hotels and offer market driven rates to our guests,” said Eric Pearson, chief marketing officer, the Americas, IHG.

According to Cross, the module is the first system to dynamically measure the responsiveness of guests to price changes and simultaneously optimise prices based upon consumer response, competitive rates and capacity constraints.

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