MENU

Revenue management based on business intelligence for the tourism sector

Create a technological solution to cover the needs of hoteliers to better cover and visualise current and future needs, enabling these to make better business decisions.

One of the key points which supports this project and its need within the Tourism Sector is to consider the amount of Travel Agencies and Hotels with Web Portals, or further more how many have an email account? Now the question is: Would you reserve the accommodation of your upcoming holidays at a hotel without a Web Page? The answer is NO! A surprising answer if we consider that only 5 years ago, we would have pondered upon the question and answered doubtfully. The ‘BEAUTY Project’ and its envisaged product allows substantial improvements to the tools currently deployed within the Yield and Revenue Management departments of hotel chains and enterprises, allowing greater competitiveness and assuring the sales prices of rooms within the E-Commerce market; B2B (Business-to-Business) and B2C (Business-to-Customer) market which up until now has been anything but easy. The ‘BEAUTY Project’ has been developed to address these issues and many key business aspects which up until now have been complicated, difficult and time consuming for the ever growing tourism industry within the competitive world of E-commerce, a market with a new competitive argument for the tourism sector. The objective to achieve is the development of joint solutions in order to create a range of tools which can be offered directly to the market for mediation as well as a profiler tool for the calculation of tariffs and the best sales prices at the right time for the tourism industry. Tourism, as one of the main and leading industries in SPAIN, has undertaken within the past few years numerous amounts of radical changes which in turn have obliged the industry to adapt to and adopt new technological advances taking place in order to keep up with industry competitiveness within the global market. This affirmation is, if possible, of greater impact within the Balearic community, where tourism represents the greater percentage of the Balearic GIP (Gross Internal Product), and at the same time the industry which generates a greater number of jobs both directly and indirectly for the community. The commercialisation of products directly through the World Wide Web, has supposed in the past few years a revolution without precedent on a global level, where the tourism sector has not been left behind. The rapid advancement of Virtual Travel Agencies, also known as PORTALS, has generated a new method of offering their products, where the final consumer receives, and is alerted to, direct product information instantly. Taking into account all of these aspects, reinforces the need for organisations within the tourism sector to encounter and take on new technologies in order to keep up with this new method of commercialisation, much more dynamic and competitive, which without a doubt is provoking great change within traditionally known management modules and in turn making ICT SMEs (Information and Communications Technology Small and Medium-sized Enterprises) and their specific products designed for this sector, (such as PMS’s (Project Management and Scheduling), CRS’s (Central Receiving Station ), CRM’s (Customer Relationship Management), Yield Management, Revenue Management, Demand Management, etc.) be adopted on an increasing and greater level in order to make this industry much more competitive and innovative. The concepts of Yield Management are not at all new to the tourism industry in general, and let alone to the Hotelier sector in particular. The art of fixing prices and optimising capacity for a particular service in order to maximise income have long been incorporated within the management systems of each organisation. The old Yield is inherent to any commercial activity. In tourism this is much more important because the product to sell has a fixed inventory. The evolution from Yield to the new concept of Revenue Management is the necessity to calculate the bid price; the best price at each moment for each client. Merge statistics, accountancy, reservations and data directly from on-line sites where the product is being sold, to later be able to define the parameters and rules to calculate the bid prices is the handicap that our project wants to overcome by creating programs for use in different scenarios. The difference within the global market is that the Internet has introduced a valuable variable which at the same time is complicated to manage: time. Keywords: revenue management, business intelligence, on-line distribution.
Acronym: 
BEAUTY
Project ID: 
4 469
Start date: 
01-01-2007
Project Duration: 
36months
Project costs: 
2 120 000.00€
Technological Area: 
Internet Technologies
Market Area: 
Computer Software

Raising the productivity and competitiveness of European businesses through technology. Boosting national economies on the international market, and strengthening the basis for sustainable prosperity and employment.