Forecasting to Optimize Revenue
accurately predicts demand to aid price setting
|ROCKVILLE, Md. – June 15, 2006 – Manugistics
Group, Inc. (NASDAQ:MANU), a leading global provider of supply chain and
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.
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 .
|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|