The hotel industry has witnessed the emergence of price optimisation tools that incorporate real-time competitive rates with a hotel’s demand and booking patterns to recommend the best price. Overall, the industry is focusing more on price elasticity and price optimisation as part of its overall revenue management strategy. Referring to developments pertaining to price-sensitivity modelling, Pieter Dorhout, Founder, Pieter Dorhout Consulting says rather than accepting demand as it materialises, RM now aims to influence demand to materialise in a profitable way. “Or in sports terms: RM is evolving from being a neutral, passive referee to becoming an active player in the market,” Dorhout told EyeforTravel’s Ritesh Gupta in an interview. “This has profound implications for the RM algorithms, processes and people. There are great examples of companies who have taken on the related challenges and reaped rich rewards. However, as with most investments, a higher return is usually accompanied by a higher risk. In this case, the appetite for sophistication needs to be balanced against the ability to deal with complexity, and getting this balance wrong can be extremely painful,” shared Dorhout. Get the full story at EyeForTravel