Wednesday, July 09, 2014

Room rates based upon big data

Hotels traditionally do have flexible rates for their rooms, the never ending challenges for hotels however is, when to raise your rates and when to drop the rates. A common seen solution is to raise prices as closer to the date the room will be occupied and one or two days in advance drop the price if it is not sold yet. On average this is working quite well however it is a suboptimal and unsophisticated way of introducing dynamic pricing for hotel rooms. The real value of a room is depending on large set of parameters that are constantly changing.

For example the weather, vacations, conventions in town or airlines that are on strike will all influence the demand for rooms. If you are able to react to changing variables directly you will be able to make the average hotel room more profitable. Keeping track of all kinds of information from a large number of sources and benchmark this against results from the past is a extremely difficult task to manually or even to code a customer application for. Duetto recently raised $21M in venture capital from Accel Partners to expand their SaaS solution which is providing exactly this service to hotels.

Duetto provides a SaaS solution from the cloud that will keep track of all potential interesting data sources and mines this data to dynamically change the room rates for a hotel based upon the results.

By mining and processing big data Duetto is able to advise hotels on when to drop or raise the price. This can change in a moment notice and without the hotel employees to keep track of all things that are happening in the area. Duetto provides all hotels an easy solution for implementing intelligent dynamic pricing. The big advantage Duetto is offering is that it is a SaaS solution that is ready to run from day one instead of building a home grown solution which might take a long period to develop, test and benchmark before it will become usable.

It is not unlikely that Duetto will be expanding their services in the near future to other industries. The demand for dynamic pricing based upon big data will only be a growing market in the upcoming years and Duetto will be in an ideal position to expand their services to new growth markets.

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