Thursday, July 25th, 2013 - New service for multi-property hotel companies helps Travelodge increase occupancy and RevPAR
IDeaS Revenue Solutions, a SAS company and the leading provider of pricing and revenue management software, services and consulting to the hospitality industry, today announced the expansion of its consulting capabilities with IDeaS Price Optimization Service. Amid the age of dynamic pricing—real-time pricing based on demand and customer type—IDeaS Price Optimization Service helps hotel companies uncover rich insights into their pricing strategies and create best available rate (BAR) price points that optimize revenue across their estate.
“During the last 10 years, revenue management has progressed significantly and become much more sophisticated, making it nearly impossible to manually create pricing strategies for more than 500 hotels,” said Peter Manby, revenue director, Travelodge. “We decided to use IDeaS’ Price Optimization Service while developing a more centralized revenue management environment and the impact of the new pricing strategy has been tremendous. We’ve seen significantly increasing occupancy and RevPAR, as well as growth in our relative market position versus our competitors.”
Using the world-class power of SAS® Analytics, IDeaS Price Optimization Service applies scientific analysis to clients’ unique, historical transaction-level data to deliver improved pricing structure recommendations. Combined with IDeaS’ extensive hospitality industry experience and proprietary pricing models, the service helps clients determine the optimal BAR price points based on price sensitivity of demand and capacity distribution for room type, day of week, length of stay and even seasonality. In the process, the service helps eliminate the sometimes manual, subjective and incomplete nature of traditional pricing methods and helps hoteliers create more precise price points with quick, time-to-value returns.
“Many organizations don’t fully appreciate the enormous impact pricing has on profitability,” said Brian Sterrett, vice president of global sales, IDeaS. “Studies show that improvements in pricing typically have three to four times the effect on profitability as proportionate increases in volume. Using IDeaS Price Optimization Service, hoteliers gain a more scientific approach to pricing that helps ensure the most optimal rates for their properties.”
To learn more about IDeaS Price Optimization Service and how it helped Travelodge achieve increased occupancy and RevPAR, view www.ideas.com/index.php/consulting.
For more information about IDeaS, please visit www.ideas.com.