February 23, 2018
Price sensitivity - Part 3
No rest for data science. We’ve been hard at work modelling what we believe is the next generation of data science for the hospitality industry.
Here is an illustration of what it looks like. The principle behind our approach is that demand need to be modelled in conjunction with price - not independently.
So what we do is, for the most granular level of inventory possible, model bookings as a function of both price and demand.
We have some more formal research in this area to present later this year. But for now, the most important piece of news is that we have this running - and it is works. Which means, it’s giving our customers a competitive edge against other properties since Pace can actually illuminate what their guests are likely to be willing to pay, and at what lead-time.