Hotel Online  Special Report

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 Manugistics Announces Unconstrained Demand
Forecasting to Optimize Revenue
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Newest Revenue Management product more
accurately predicts demand to aid price setting
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ROCKVILLE, Md. – June 15, 2006 –  Manugistics Group, Inc. (NASDAQ:MANU), a leading global provider of supply chain and revenue management solutions, today announced the roll out of Unconstrained Demand Forecasting, its newest pricing optimization solution for the hospitality and travel industries. The new solution more accurately predicts forecasted demand to allow hotel and travel companies to set limits on lower-value customer segments to increase revenue per available room (RevPAR) and profitability. 

Unconstrained Demand Forecasting is web-architected and integrated on a single platform with the complete suite of Manugistics Revenue Management solutions including Group Pricing, Price Sensitive Revenue Management, Reporting/Analytics and Collaboration.   The product was developed for a well-known global hotel corporation and is also being utilized by a large passenger rail company. 

Hotels and travel companies base pricing on forecasted demand, but as more people make reservations through Internet-based channels, operators are unable to capture the percentage of turn-downs issued.  This causes a problem for conventional revenue management strategies. “To optimize pricing in the digital age it is essential that operators have a realistic idea of future demand from all channels; we call this kind of forecasting ‘unconstraining,’” said Manugistics Vice President of Demand and Revenue Management, Jeff Anderson.  “Without data on why bookers walk away it is impossible to set rates correctly.  Unconstrained Demand Forecasting uses advanced statistical modeling to allow operators to accurately estimate lost demand to optimize pricing.” 

Manugistics developed Unconstrained Demand Forecasting from a group of statistical tools that estimate historical lost demand when inventory was restricted by availability or rate-code cut off.  The system can estimate lost demand for any rate program closed at any point in the reservation process. “There is incredible value associated with improved forecasting,” Anderson said.  “Based on experience in the airline industry the result of switching to a better forecasting method can impact revenue 2 to 12 percent.” 

Manugistics Revenue Management Group

Manugistics has pioneered industry leading pricing and revenue management solutions.  Today, leaders in the service-based Travel, Transportation and Hospitality industries leverage Manugistics’ expertise to maximize their profits.     Manugistics clients include Harrah’s-Caesars Entertainment, Omni Hotels, Princess Cruise Lines, Continental Airlines, TUI (formerly Thomson Holidays) and Continental Airlines Cargo. 

Manugistics will be an exhibitor at HITEC 2006 in Minneapolis, MN, June 20-22. 
Please visit Booth# 1515 to learn how Manugistics’ solutions can increase your company’s revenue.

About Manugistics Group, Inc. 

Manugistics powers the synchronized supply chain. Clients depend on Manugistics to position them one step ahead of demand. With Manugistics' unparalleled supply chain and   revenue management solutions, clients achieve improved forecast and inventory accuracy and leverage industry leading pricing and yield management solutions to maximize profits while ensuring optimum supply for constantly changing demand. Its clients include industry leaders such as Boeing, Canadian Tire, Cingular, Circuit City, Coca-Cola Bottling, Coty International, DHL, Diageo, DSG International plc, DuPont, Eurostar Group Ltd., Georgia-Pacific, Great North Eastern Railway (GNER), Harley-Davidson, Harrah's Entertainment, H.J. Heinz, Limited Brands, Kraft Foods, Marriott, McCormick, Nestle, RadioShack, The Scotts Company, Sears Holdings Corp., Sinotrans, Unilever and Wickes Building Supplies. For more information, visit our website at www.manugistics.com

FORWARD-LOOKING STATEMENT 
This release contains forward-looking statements that involve risks and uncertainties which could cause actual results to differ materially, including, but not limited to, the following: the Company’s ability to obtain stockholder and regulatory approvals for the merger between Manugistics and JDA Software Group, Inc. and to consummate the merger; Manugistics’ ability to generate sufficient cash flow to meet its existing debt obligations and effectively conduct its business operations; the implementation of the Company’s exit and disposal plans and other cost reduction measures to align its cost structure with its revenue; effects from recent significant changes in the Company’s organizational structure and senior management; Manugistics’ ability to motivate, hire and retain its highly skilled and qualified workforce; continued softness in the market for enterprise application software, as well as political upheaval and unrest; the Company’s ability to overcome its difficulties in sales execution; the Company’s ability to maintain its competitive place in the markets for its products and services, to keep pace with the rapid technological advances or to introduce new products or product versions that satisfy customer demand, achieve market acceptance or meet competitive challenges; and changes in our competitive environment, including industry consolidation.  More information about factors that potentially could affect Manugistics’ financial results is included in Manugistics’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended February 28, 2006.  This information is accurate only as of the date of this release and we do not undertake any obligation to update any of the information contained herein.

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Contact:

Ms. Sheila Blackwell
Manugistics
301-255-5486
sblackwell@manu.com
http://www.manugistics.com

Media Contact:
Julie Keyser-Squires
Softscribe Inc.
404-256-5512
julie@softscribeinc.com
http://www.softscribeinc.com
 

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Also See: Manugistics Scientist Co-Sponsors Research Paper: Improving Revenue Management in the 21st Century; Manugistics teams with Georgia Institute of Technology Professor to Create Price-Boosting Revenue Strategy Tools / February 2006
Manugistics Scientist Dr. Jon Higbie to Address Travel Pricing Strategies at Res-Expo; Manugistics to Showcase Best-of-Breed Solutions spanning the Hospitality, Airline and Travel Industries / February 2006
Top 3 Must-Dos to Boost Revenue for Hotel Franchisees / January 2006
Manugistics to Showcase Next-Generation Chain Group Pricing Technology; In the ‘Year of ADR,’ Chain Hotels Capture More Group Business; Manugistics Centralized Solution Drives Higher Daily Rate / June 2005
Manugistics Senior Executives to Address Industry Professionals at HSMAI Revenue Conference and MIT INFORMS Event / June 2005
Omni Hotels Reaps Revenue Increase with Manugistics and The Rainmaker Group / Powerful centralized automated revenue management solution maximizes room value while recognizing loyal customers / June 2005


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