| Integrated Decisions and Systems
Inc. was established in the late 1980s to provide revenue optimization
systems to airlines, large trucking firms and other transportation industries.
The founders of IDeaS are pioneers in the relatively new field of scientific
decision systems. Before the world knew anything about these systems, they
developed innovative solutions for AT&T Bell Labs, Texas Instruments
and Andersen Consulting.
The company soon received contracts to develop airline systems for Northwest
Airlines and USAir. Clients and industry analysts quickly adopted the acronym
for Integrated Decisions and Solutions - ideas - as the company identifier,
and the company evolved its name into IDeaS, Inc.
IDeaS began to focus on the hospitality market, which was seeking
a more effectiveyield management approach. In 1996, only 40 percent of
the hotels and resorts worldwide used different forms of yield management.
The hospitality industry was ready for a change.
In 1996, IDeaS introduced the IDeaL/YIELD software system for the hotels
and resorts. IDeaS quickly proved that its solution produced a profound
impact on the way hotels and resorts maximize their revenue potential.
As the global leader in yield management systems for hotels and resorts,
IDeaS has sales and service offices located in San Francisco, London, Paris,
Munich, Pune and Sydney, with corporate headquarters located in Eagan,
Minnesota.
The company employs more than 110 individuals, the majority of whom
are dedicated to quality assurance and systems delivery. The number of
clients exceeds 100, and the IDeaL Solution has been implemented in more
than 20 countries.
Our yield management solution delivers measurable benefits in a consistent
repeatable manner.
At IDeaS, we simplify the process of yield management and implement
a total solution, helping hotels & resorts significantly increase room
revenues.
With the IDeaS system for hotel & resort yield management, you will
experience increases in occupancy and rates through rate, length-of-stay
and overbooking controls.
As a result, your property's RevPAR rise within your own competitive
environment. Then you are on your way to enjoying the rewards of maximized
RevPAR performance: improved profits and excellent return on investment.
Maximized RevPAR is achieved by balancing occupancy and available rates
with an unconstrained demand forecast. Based on historical and current
transactional data, our proprietary methods of system building calculate
demand of bookings and reservations denied, allowing the property to maximize
revenues from the most optimal business mix.
In fact, our solution consistently delivers 4% or more in measured room
revenue increases, compared to alternative, non-measurable yield management
approaches. IDeaS is the only company to provide measurement of the yield
solution's performance, isolating yield impact from other factors.
IDeaS offers reward-sharing pricing flexibility where the price is contingent
upon delivery of measured results.
Discover the key areas of our
solution:
IDeaL/START - The process by which
historical transaction data, current demand trends, risk strategies and
property business philosophies are extracted, through which your yield
strategy is developed for each of your properties.
IDeaL/YIELD - A state-of-the-art
yield management system tailored to the uniqueness of your property.
IDeaL/CARE - Proactive remote monitoring
and 24 x 7 support of your IDeaL/YIELD System to respond to questions,
flag discrepancies to the user and make adjustments.
IDeaL/RESULTS - A proven method
to conservatively measure the effectiveness of your IDeaL/YIELD System,
isolating changes in business or market conditions.
FAQS
| 1.What type
of hotel or resort is best suited for a yield management solution from
IDeaS? |
Properties that often turn down multiple
night stays, experience empty rooms on “sold-out” nights and/or frequently
turn away high-rate business. In addition, properties that need help determining
when and when not to book groups.
Many properties that know the value of yield management
systems - but once used older technologies with disappointing results -
also are well suited to benefit from the IDeaL/YIELD system and the solution
from IDeaS. |
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| 2.How can IDeaS offer
a guarantee on its system’s impact on transient room revenue increases? |
The system’s performance is validated through IDeaL/RESULTS,
the scientific measurement approach from IDeaS. IDeaS partners with its
clients to assure successful implementation in one property or across an
entire chain. An essential part of our guarantee is to help clients gain
complete trust in the IdeaS benefits measurement process.
Consequently, we work closely with our clients to help
them understand and accept the process’s integrity before implementation
begins. |
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| 3.How many hotels or resorts have installed
the IDeaL/YIELD system? |
More than 100 systems worldwide
in more than 20 different countries. In 1999, IDeaS will roll out even
more systems for hoteliers like Hilton International and Stakis Hotel Group. |
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| 4.Why does a hotel or
resort need a yield management system? |
To increase revenues from the property’s inventory of
rooms.
Our solution increases room revenues at least 4% or more.
As a leading yield management supplier, we are committed to helping our
clients maximize revenues while managing risk under current and anticipated
market conditions. |
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| 5.What other benefits
does IDeaL/YIELD bring to hoteliers? |
The IDeaL/YIELD system frees up the hotelier from manually
reviewing mountains of data or reacting to the recommendations typically
generated from a stand-alone decision support system.
While the overbooking, length of stay and rate controls
automate the opening and closing of rates, the hotelier can devote more
time to guest services and look for the other ways in the property to increase
revenue.
Reports from the IDeaL/YIELD system show the hotelier
how well he or she is meeting occupancy goals from different market segments.
With this type of information, the hotelier’s sales and marketing team
can develop targeted promotions.
The IDeaL/YIELD system proactively flags forecast demand
exceptions, and prompts the hotelier to take steps to increase occupancy. |
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| 6.How does IDeaS compare
with other yield management companies? |
IDeaS is 100% committed to hospitality yield management.
For others, the hotel/resort industry is not a priority vertical market.
In the IDeaS organization, we employ many hoteliers in addition to a staff
of scientists, mathematicians, statisticians, and programmers.
Our hoteliers own a unique understanding of Front Office
Operations, Yield Departments, and Hotel/Resort Sales and Marketing Departments. |
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| 7.How does the IDeaL/YIELD
system compare with other systems? |
The IDeaL/YIELD system automates length-of-stay, rate
and overbooking controls to open and close rates from the property’s PMS/CRS.
Booking decisions are consistent and made in real time. |
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| 8.How does the IDeaL/YIELD
system handle forecast reporting? |
Forecasts are prepared using demand patterns, as well
as the demand uncertainty, special events and on-books information. Unconstrained
forecasts (demand not limited to the capacity of the property) are prepared
for demand, no-show and cancellation, booking pace and rate. |
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| 9.How does the IDeaL/YIELD
system update the demand forecasts? |
PMS/CRS data is automatically extracted nightly and is
used to update the IDeaL/YIELD forecasts. This allows the system to make
daily adjustments to the overbooking, rate and length-of-stay controls. |
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| 10.How does the IDeaL/YIELD
system set restrictions on open/closed rates? |
The IDeaL/Yield’s optimization module creates restrictions
based on forecast information, capacity and booking information. It also
generates opportunity costs, expected occupancy, expected turndown, authorized
capacity and an opportunity cost adjustment factor. |
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| 11.What happens to the system when there is
a turnover in Front Office personnel or the Front Desk supervisor goes
on vacation? |
With a seamless two-way interface
between the IDeaL/YIELD system, the controls are automated 24 hours a day,
365 days a year, assuring consistency and accuracy, even when faced with
staff changes and time off. |
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| 12.How does the IDeaL/YIELD
system affect the hotelier’s competitive set? |
By implementing the system, the
hotelier will experience increases in occupancy and rates through automated
controls. As a result, RevPar rises within the hotelier’s competitive set.
Maximized RevPar performance means improved profits and excellent return
on investment. |
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| 13.Don’t all yield management
systems consider all properties to be the same? |
We believe that the more you value, appreciate and incorporate
or capture a property’s uniqueness, the more effective the system will
be in its mission to deliver benefits.
For each hotelier client, we integrate a business model
- unique to the hotel’s property - which reflects the hotelier’s business
strategies. |
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| 14.What steps does IDeaS
take to build a system? |
Historical transaction data from the PMS/CRS is captured.
It is then verified and analyzed. The analysis is presented during the
first of three training sessions. After the hotelier’s management team
reviews the analysis and factors like risk strategy are considered, the
system is built. |
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| 15.Why does IDeaS focus
so much on training? |
Our clients value our commitment to training to fully
evaluate the analysis of the property’s transaction data, to understand
the system’s operations and functions, and to follow up with answers to
the client’s questions after installation.
With training, the client can discover how the system
will deliver the benefits he or she expects, plus the entire yield, front
office and sales/marketing team gain a deeper understanding of general
yield management principles. |
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