Marriott International Increases Revenue by Implementing a Group Pricing Optimizer

Published Online:https://doi.org/10.1287/inte.1090.0482

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.

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