Revenue Management

💸 On Dec 10, 2024, surveillance pricing was detailed as setting personalized flight costs using data like browsing habits, location, and income. For instance, using a MacBook might result in higher flight prices than a cheaper PC. Expedia and other platforms use AI, such as PROS WTP, to predict and optimize for the highest price a customer is willing to pay. Key factors affecting prices include repeated searches, indicative of urgency; income-based pricing, with higher fares for those in wealthier postcodes; and preference-based offers, where searching for luxury hotels could prompt pricier travel package offers.

🍳 In November 2024, U.S. restaurants saw year-over-year growth with sales up by 8.1% and foot traffic by 8.7%, with a decline in average ticket sizes by 1.3%. The Fiserv Small Business Index for Food Services and Drinking Places reached 131, a 4-point increase from October, with restaurant sales and transactions up by 3.1% and 1.9% respectively. Retail's year-over-year sales and transactions grew by 5.6% and 9.5%, while average ticket sizes decreased by 3.8%. Grocery (+11.1%), General Merchandise (+11.0%), and Clothing, Shoes and Jewelry (+7.3%) led retail growth. Service-based small businesses saw a 5.1% increase compared to 2023, with Information Services (+15.0%) and Food Manufacturing (+14.8%) showing significant growth. Regionally, Nebraska (+13.1%), Florida (+11.5%), and Alaska (+11.4%) had the highest year-over-year small business sales growth, while Miami (+11.4%) and Atlanta (+7.5%) topped large cities in growth.

🏨 U.S. hotels in October 2024 reported increases in average daily rates (ADR) by 1.8% to $164.86, occupancy by 2.3% to 67.3%, and revenue per available room (RevPAR) by 4.1% to $110.94, as per STR data. New York led STR's top 25 markets with the highest occupancy at 91%, while St. Louis recorded the lowest at 61.7%, followed by Minneapolis at 63.1%.

📊 Hospitality revenue managers in the U.S. face challenges such as consumer preference shifts and competition from short-term rentals, with RevPAR growth projected at 1.2% through 2024. AI integration in revenue management enables dynamic pricing, improves demand forecasting, and personalizes customer interactions for loyalty and growth. AI-powered tools enhance real-time decision-making and data analysis, integrating with ERP and CRM systems for seamless data flow.