Travel and hospitality / Hotels

IHG: Hotel revenue and room demand management

Company
IHG
Country
United Kingdom
Adoption stage
In operation
Source published
Date basis
The date the source was published. It can differ from the date adoption started.
How the source was checked
Read the full source text

The work problem

IHG took the view that it has to raise performance in three places: guest experience, guest acquisition and hotel performance. Hotel performance depends on how accurately room demand is read and priced. This report does not separately describe how revenue management worked before adoption.

Technology and data

Data science, machine learning and forecasting tools were put into the revenue management system. The system produces advanced analytics results and recommendations. IHG gave this as one example of AI use across the company. As another example in the same vein it gave improvements to the IHG One Rewards mobile app. The report does not disclose the system name, the kinds of data connected, or how hotel operators take up the recommendations.

Results

IHG said this technology deepens brand loyalty and sharpens competitive advantage. Under the hotel owners section it wrote that it widened the scope of technology applied in order to capture demand, raise revenue and optimise operations. Under the guests section it wrote that AI based technology raised the guest experience. How much the revenue management system contributed to revenue per room was not separately disclosed.

Limits and open questions

There are no figures isolating the AI contribution. The date of adoption and the number of hotels covered are also not in this document.

Sources

Compiled from public sources. These are not results from ATF Works customers.

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