GRO™: Granular Revenue Optimization Models
Hoteliers have become aware that the sheer scale and mathematical complexity of deciding the best rate is beyond the ability of the human revenue manager. The RM function is now more about science than art. Unfortunately, the most popular RM systems, which are based on simple yet hidden yielding methods, have proven their limitations.
True, real-time dynamic pricing is the holy grail of revenue optimization and that is exactly what OWL delivers with our GRO models. Tailored to exploit the nuances of your hotel’s unique demand rhythm, our models continually perform mathematical searches for movements in the booking and comp set pricing patterns that signal an opportunity for more revenue. Without requiring any inputs, the GRO model then prescribes the daily sequence of rate changes that are optimal for your strategy. In the process, the GRO model also identifies where promotions, special rates, and group discounts are most appropriate.
Granularity is the extent to which you break down a problem. The fact is that the most popular RM software systems do not yield at the appropriate level of detail. This is because their technology is designed to be standardized for many clients instead of specific to any one. Therefore, their “black box” algorithms miss opportunities that are only discovered by yielding at the channel, room type, and guest segmentation level. Using intelligent customization, GRO models continuously forecast and optimize your rates at the most relevant layers of demand.