Why So Little Testing of Revenue Management Strategies in Hotels?

Nov 12, 2020, 05:33 PM

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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