Have you ever thought of where the hotel’s room price is coming from?
Is that an expert judgment or maybe some sophisticated statistical mechanisms? Well, actually it is even more complicated. Finding the right price is an art. It requires deep knowledge and advanced mechanisms of analyzing many factors, including external data sources, historical pricing, historical and future booking level, product availability as well as the comparison with the similar requests from the past.
One of our domain experts told us the following story:
Once, I picked up the phone and was asked for the quote for the large group from Germany. When I gave them a price they said that they expect a discount since there are more than ten people willing to stay in the hotel. I kindly refused, which actually shocked them. You must be wondering why I did that – the answer is simple, I knew that at the same time, Madonna is on her tour and she will be playing a concert in our city, thus the price must be higher
The challenge I have just described translates into a very complicated mathematical problem, that contains many dimensions, probability elements, and AI aspects. What is even more important is that it has to be evaluated continuously, even every hour to make sure that the hotel’s product price is optimal. To help the hotel industry, we decided to automate it.
That is how proRMS was born
Deep meritorical analysis without the support of technology may be very expensive, especially given the fact that it has to be done periodically. We combined both: meritorical and technical aspects and created the innovative software powered by the author’s algorithms, AI and deep knowledge of the domain’s experts (from both: hotel and mathematical industries). The software that can compete with market leaders.
What is proRMS?
proRMS is a professional analytical system that supports decision making in the area of the hotel product price and availability policy. For each hotel that is mapped to the system, our advanced algorithms continuously analyze the multi-dimensional data coming from different sources. On that basis, the system proposes an optimal price for a given product, depending on the current and anticipated booking level, product’s availability quotes from the organized groups.
Apart from that, it offers advanced tools for deep, real-time analysis of the hotel, including trends, client’s profile, etc.
Where are we now?
After 11 months of hard work of more than 30 people, we successfully implemented proRMS in the first hotels. Now we are focused on the feedback and we are working hard on the product’s improvements and further development.
Please check our case study.
Author: Krzysztof Ryk
