YieldPlanet launched a new investment project for a global product category innovation – Hotel Management Optimizer

Feb 8, 2017Revenue Management, Revenue Strategy

Airlines make over 1M fare changes per day to maximize revenue. YieldPlanet wants to bring this discipline to the hotel world, with the assistant of a newly revealed research project called Hotel Management Optimizer.

The HMO is a global product category innovation, allowing hoteliers for the first time to profit from advanced learning algorithms and artificial intelligence to optimize their revenue and profitability with an integrated tool.

YieldPlanet says: “The researchers will develop self-learning algorithms that adapt to changes in the environment which integrated with large numbers of external data sources and Big Data analysis will allow us to measure items that might influence hotel room pricing”.

This research offers a unique opportunity to optimize revenue management systems over thousands of hotels, which introduces some exciting challenges: handling differences in behaviors between different countries, cultures and climates; managing the uncertainty of competitive behavior; blending the sparsity of the data from a single hotel with the richness of a dataset that spans many hotels; and modeling the different ways that markets response to prices.

The YieldPlanet product development team plans to show off their early results mid 2017. The ultimate goal is to release HMO as a cloud software for hotels, in early 2018.

We believe that this form of artificial intelligence will prove especially useful for pricing recommendations. We are confident that we will be delivering results that have practical value to hotels and can improve their revenue and profitability within a 3-4 year time horizon.

The National Centre for Research and Development (NCBiR) has granted 5 MPLN from the European Union National Strategic Reference Framework to cover the HMO research. The project will be carried out under the Innovative Economy Operational Programme, priority axis 1. With the EU’s funding, YieldPlanet and its academic partners can research and develop a solution that will be more innovative and superior to what is currently available, putting YieldPlanet in the forefront of research and innovation.