Marriott International Increases Revenue by Implementing a Group Pricing Optimizer

Sharon Hormby (), Julia Morrison (), Prashant Dave (), Michele Meyers () and Tim Tenca ()
Additional contact information
Sharon Hormby: Marriott International, Inc., Bethesda, Maryland 20817
Julia Morrison: Marriott International, Inc., Bethesda, Maryland 20817
Prashant Dave: Marriott International, Inc., Bethesda, Maryland 20817
Michele Meyers: Marriott International, Inc., Bethesda, Maryland 20817
Tim Tenca: Marriott International, Inc., Bethesda, Maryland 20817

Interfaces, 2010, vol. 40, issue 1, 47-57

Abstract: Marriott International's Group Pricing Optimizer (GPO), a decision support system, provides guidance to Marriott personnel on pricing hotel rooms for group customers. GPO uses demand segmentation, price-elasticity modeling, and optimization techniques to recommend an optimal rate. In operation since late 2006, the system has improved Marriott's hotel profitability and enhanced the sales process for both sales managers and customers.

Keywords: pricing; optimization; revenue management; lodging/hotel industry; segmentation; group business (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:40:y:2010:i:1:p:47-57

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