Eye For Travel, Amsterdam, November 24 2014 Eye For Travel, Amsterdam, November 24 2014

Source: © INMAGINE.com

WE ARE EXERIENCING A PIVOTAL MOMENT IN THE HISTORY OF DATA…

2

80% Of all data were

created in the

last 18 months 10X

by 2020

UPSELL UPSELL

ROUND THE CLOCK RM ACTIVITY

… BUT A NORMAL HUMAN BRAIN CANNOT AFFORD SO BIG DATA

3

BIG DATA IS ALREADY AT THE CORE OF RM JOB AND DECISIONS

BIG DATA

Forecast

Algorithms

+1M 3.5K

reports/year users/month

Reporting

Pricing

…

« If you have just a little bit of the right information a couple of seconds or minutes in advance, it’s more valuable than all of the information in the world six months after the fact.” Vivek Ranadive

THE NEW ERA OF FAST DATA, ‘‘the 2-second advantage’’

AN EXAMPLE OF BIG DATA Dynamic pricing solution for ibis HOW WE DO IT ?

We look for a fine understanding of clients and hotel sensitivity

Price sensitivity: client & calendar Competitive environment & place

capacity

Psychological and min / max prices

(depending on hotel cost structure) Lead time & booking curve impacts

SMART

Pricing

per hotel

What is the right price every day (high & low season)

for each type of client (business & leisure)?

How do prices evolve depending on competition

intensity?

How does price sensitivity evolve along booking

curve and lead time?

What are the psychological prices (min and max) for

each hotel?

PRICE SENSITIVITY

7

0.5

1.2

2.0

We find a strong relationship between the occupancy rate and the price index.

The hotel strategy has to be based on the understanding of this relationship

Low elasticity

High elasticity

Sy

nth

es

ize w

ith

a v

alu

e s

ca

le

SEASON

High Season

Low Season +

-

DAY

Monday

Friday & Sunday

Tuesday, Wednesday,

Thursday & Saturday

+

-

LEAD TIME

Early booking

Last minute booking

+

-

COMPETITIVE INTENSITY & ENVIRONMENT

High

Low

+ -

HIGH ELASTICITY: “I RAISE MY PRICES BY 10%,

I DECREASE MY VOLUME BY 20%,

SMART PRICING IS GOING TO

RECOMMEND A « VOLUME

STRATEGY » WITH A PRICE DROP

LOW ELASTICITY: “I RAISE MY PRICES BY 10%,

I DECREASE MY VOLUME BY 5%,

SMART PRICING IS GOING TO

RECOMMEND A « MARGIN

STRATEGY » WITH A PRICE

INCREASE.

AN EXAMPLE OF BIG DATA Accor Dynamic pricing solution

SHIFTING TO FAST DATA NOW All in one solution, decision driven data BENEFITS

ALL INCLUSIVE TOOL

OUTPERFORMING OTHER HOTELS BY 5% IN REVPAR,

1 REVENUE ANALYST MANAGING UP TO 25 HOTELS

offers an “all inclusive” tool enabling hotels to monitor

all Pricing related matters in a powerful, efficient & user

friendly environment.

PICK UP Follow your hotel

pickup for the last 21 days

Calculate & finalize

price grid & strategy

RATE SHOPPER

Supervise the

competitors prices

TARS iPMS

Daily Pricing Monitoring

through a fully

automated & integrated

INTERFACE

Access reliable

and aggregated

REPORTS

SUPPORT Register and

follow any bug online

FAST DATA, WHAT’S NEXT ? CUSTOMER CENTRIC REVENUE MANAGEMENT

2.5 TIMES HIGHER

A customer value

LOYAL

CUSTOMERS

3 TIMES HIGHER

vs traditional approach

Click & conversion rate

CUSTOMIZED

OFFERS BY PROFILE

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Data scientist :

new profile in RM,

BI, CRM, web

FAST DATA: What is going to change for RM and Analytics ?

Customer centric RM

optimization

vs. transaction

Integration

All in one solutions

Real-time data

11

agnes.roquefort@accor.com

THANK YOU