Analytics for Revenue Management

Revenue management was one of the first areas in the hotel to apply advanced analytics, adapting the forecasting and optimization techniques first applied by the airline industry. The market has changed, and the analytics needed to evolve along with it. Today, hotels need to incorporate price optimization, based on guests' willingness to pay, along with traditional yielding to get the most revenue from their rooms. Revenue management is becoming a more strategic function as well, expanding to other revenue generating outlets, aligning with business strategy, and considering the best mix of guests. Casinos have a unique spin on the hotel problem, needing to factor in patron value, to ensure that the most valuable casino patrons have access to rooms, while selling the remaining inventory at the best rates.