December 17, 2012

Inside the hotel pricing game, Marriott style

Last week CNBC aired a documentary titled “Hotel: Behind the Closed Doors at Marriott” and a portion of the show was an interview with Marriott International’s revenue management guru, David Roberts, describing how the hotel giant squeezes every penny out of its 3,700 hotels.

Roberts at some point goes as far saying: “When there’s money left on the table, it hurts me. I feel physical pain.”

This is of course not any new devious strategy devised to fleece customers, this is hotel revenue management 101 at scale, Marriott scale. The hotel chain giant spans 74 countries, 3700 properties, and 20 brands – from Courtyard to Marriott to Ritz-Carlton – and pulls off the massive feat of housing and feeding guests in more than 645,000 rooms each night.

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