HOSPITALITY · COMMERCIAL ANALYTICS
Over £20m of revenue impact, fixed in the pricing algorithm.
Revenue impact identified and resolved through pricing changes.
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The situation.
A UK park-resorts company asked us to develop an elasticity measure to integrate into its pricing system, and to review the chain's general revenue management approach to identify significant opportunities.
The process.
We worked with the revenue management team to handle data-sparsity issues and developed several elasticity models to form a view of the elasticity curve. We ran analytics across pricing strategy, customer, merchandising and inventory availability using desktop research and bookings data, and identified a few failure states alongside rising elasticity towards the stay date and lower elasticity for premium inventory.
The outcome.
We identified the key dimensions of elasticity and how they affect revenue management for the client, and defined a longer-term ambition and roadmap for the revenue management function, supported by short-term pricing actions.
We thoroughly enjoyed working with DVS. They quickly integrated with our team and provided invaluable insights.
MORE WORK
Other engagements.
HOSPITALITY · COMMERCIAL ANALYTICS
A ten-year size of prize for revenue management.
A clear, agreed size of prize for revenue management investment.
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HOSPITALITY · COMMERCIAL ANALYTICS
A rigorous experiment to test vendor RMS against in-house.
Defined to measure vendor systems against the in-house RMS.
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