A longstanding hospitality chain achieved 18% revenue lift through increased hotel bookings.

18%

Revenue Uplift

$28M

Annual Incremental Revenue

+26%

Incremental Room Nights

Challenges

Leading operator was looking to improve booking revenues on their brand’s website, but had a number of challenges to consider:

Advanced segmenting and targeting a highly heterogeneous consumer base.

Coveted destinations in a competitive industry, with continuous price benchmarking.

Rapid competitor price reaction to any promotions or discounting.

The hospitality chain's goal was to create seamless user experiences that increase hotel booking revenue from their brand’s website.

Solution

A pilot test of Adaptive Pricing was implemented in just six weeks, requiring minimal IT integration. As the algorithm learned, and integration refined, iterative performance improvements were achieved for 18 months after initial deployment, resulting in:

Tailored promotional adjustments based on the customer’s individual elasticity

Predictive capabilities at the level of each individual visitor

A consistent, yet personalized experience for each visitor

Hard-to-detect technology, protecting the brand against competitor reaction

Today, Adaptive Pricing has become a core

competitive advantage

for the hospitality chain,

with mission-critical outcomes such as:

Today, Adaptive Pricing has become a core competitive advantage for the hospitality chain, with mission-critical outcomes such as:

Significant revenue uplift on traffic within scope that have high elasticities

Additional lift in Average Basket Value – natural upselling despite incentives

Continued algorithm improvement and revenue lift for 18 months after initial deployment

AP integration across additional marketing, promotion, and reinvestment activities