www.lodgingmagazine.com/ME2/dirmod.asp?sid=&nm=&type=Pu -
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Published on: 12/27/2007
Last Visited: 12/27/2007
"The software helps hotels set the right rates for their customers and to maximize the profitability of the hotels by setting optimal rates, availability, and length of stay controls," says Jon Higbie, the chief scientist and director of operations for JDA Software Group, which recently acquired Manugistic.
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"Hotels have different processes, but a typical process is that every month, a hotel establishes a whole range of different rates, both rack rates and several different discount rates," Higbie says."On a daily basis, they open and close those different rate plans based on the balance of supply and demand."
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Although the systems were originally set up for transient guests in hotels that had consistent business, they are now being used for resort and convention hotels and for group pricing, Higbie says.
Large groups boost food and beverage, pay for function space, catering, possibly audiovisuals, and fill a large number of rooms at one time.
"The science around group pricing is very different," Higbie says."You have to recoup the revenue the large group is going to displace and at the same time charge the right price to maximize your own revenues and control the risk that they'll book with another hotel."
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"Much more than transient demand, you have to go out and get group demand," Higbie says.
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