![]() IBM’s analytics software was utilized and called Big Insights inside the Marriott. Using the infrastructure of IBM’s public cloud computing platform, Marriott migrated a significant part of its core IT system and applications to IBM. Marriott and IBM’s Cloud Technology 2015 and AI for Customer Experience 2020Īround 2015, Marriott adopted IBM’s cloud technology to offer faster digital services to clients and to discern insights from the company’s international properties. “The hotel chain Marriott has been using Big Data Analytics to start predicting the optimal prices of its hotels” (Forbes). With dynamic pricing automation, Marriott is able to maximize its profit and ensure adequate staffing. For example, if during the Christmas season North American consumers are more willing to spend a week of vacation in New York, the ROS will automatically adjust rates. The hotel chain invested more than $50 million in its Revenue Optimizing System (ROS), which can integrate data from both internal and external sources and suggest optimal prices based on the results of its real-time analysis and demand forecast. In 2014, Starwood hotels heavily implemented dynamic pricing automation, when was not long before merging with Marriott International in 2016. Its Data Strategy and Governance team implements innovative solutions to provide decision-makers with timely access to high-quality, integrated data. With such early year experience, the hotel chain recognizes the value of innovation and understands how to use data to guide decisions. This study guided to an investment of $200 million per year in revenue from the pilot test, with a billion dollars in revenue per year. This study changed management’s mind and instead of building smaller versions of Marriott hotels, they created hotels with an entirely new and different concept, ‘nice but affordable’ – Courtyard by Marriott. It is quite impressive how their solution was in how the team designing their customer survey maintained a clear view of how given outputs mapped back to the management questions for the new product. Marriott used conjoint analysis conducted on customer surveys to predict the market share that the product could deliver and then demonstrate the accuracy of these predictions through pilot tests (Figure#2). Even before the term was coined, Marriot used data science to arrive at their solution for Courtyard, by Marriott. ![]() Marriott needed to open a new market for growth, and seize back existing market share, while not cannibalizing their existing clients – they needed a new brand and product. In the late 70s, Marriott was running out of sites where more traditional hotels could be built, while competitors like Holiday Inn were occupying their market share. Pathways to a Just Digital Future Watch this tech inequality series featuring scholars, practitioners, & activists
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