Revenue management is generally the most data and analytics intensive department within the typical hotel today. To accurately price rooms, revenue management systems forecast demand, and then optimizes the price and availability of rooms to maximize the revenue from the limited capacity of hotel rooms. Within this process, statistical analysis is used to model no-shows and cancellations, “unconstrain” demand and calculate price sensitivity. At this point, most hotels use a revenue management system that has been specifically designed to execute the complex analytics required to deliver an optimal price. The analytics processes are configured to the hotels’ specific operating conditions and connected to selling systems to deliver price and availability controls. Still, there are many analyses that revenue management might conduct outside of the revenue management system. For example, they might want to use descriptive analytics to analyze demand for a restaurant or spa as part of a total hotel revenue management program, or data mining to understand how consumers value different attributes of the room to better configure rate spectrums. Get the full story at SAS