About   |   Newsletter
Demand & Supply Chain Management Evolution

Case Study Detail
Language: English

CARLSON HOTELS: Carlson Hotels maximizes revenue and profits with help from JDA



 Carlson Hotels


Market transparency and the rapid growth of Internet bookings have led to a new price war in the hospitality industry, creating significant challenges for hotel operators. Even with Carlson Hotels’ worldwide reputation for service and quality, the company is constantly looking for ways to differentiate itself — and maximize its revenue — in this competitive, price-driven environment.

“In 2008 and 2009, we began to realize that the traditional market segmentation in our industry had collapsed with the move online, at the same time occupancy rates were plummeting as the economy tanked,” said Frederic Deschamps, vice president of global revenue optimization at Carlson Hotels. “Consumers were using the Internet and other distribution channels to evaluate their hotel options based solely on price, and not on quality. Every purchase was starting to gravitate toward the lowest available rate, with fierce competition across an industry with half-empty hotels. We knew that we had a pricing problem during the downturn — but we also wanted the capability to price better when a high-demand period presented itself.”

When market conditions lead to fewer sold-out nights, traditional yield management is only sporadically effective. For Carlson Hotels, that signaled an opportunity for positive change. “We needed a more sophisticated method of matching rates to actual demand so we could measure our success based not only on occupancy rates, but also on the revenues generated by individual bookings — and the value of ‘missed opportunities’ caused by quoting higher prices during a low-demand cycle,” said Deschamps.

After determining that its hoteliers needed to understand the price at which their hotels would make the most money on all future booking nights, Carlson Hotels turned to JDA Software for a radically different approach. They embarked on a new revenue optimization project called SNAP, which stands for stay night automated pricing, to drive higher revenue for its hoteliers using JDA Demand and JDA Travel Price Optimization. Carlson Hotels is now able to quantify price elasticity and use that output to generate optimal prices, bringing competitor data into its revenue management system and forecasting how customers will respond to price changes.



read the full case study >>
(external link)


Consult JDA Case Study in:

Other Case Study of
in English

ACCESS BUSINESS GROUP: Access Business Group - Achieving Higher Performance

ACKERMANS: Ackermans - Allocating in Style

ADVANCE AUTO PARTS: Advance Auto Parts - Driven to Serve

AEON: AEON - Focus on the customer

ALTERA CORPORATION: Altera - Adopting a Segmentation Strategy

AMERICAN AIRLINES CARGO - Achieving Sky-High Success

ASIAN PAINTS: Asian Paints - Superior Supply Chain Performance

ATLANTA BONDED WAREHOUSE CORPORATION (ABW): Atlanta Bonded Warehouse - Standardizing Warehouse Operations

BEAVER STREET FISHERIES: Beaver Street Fisheries Dramatically Improves Warehouse Efficiency and Accuracy

BEL GROUP: Bel Group - Leading the Herd

BRADSHAW INTERNATIONAL: Bradshaw International - Recipe for Success

BRIGGS & STRATTON: Briggs & Stratton - Enhancing Labor Productivity

BUTTERBALL: Butterball - Recipe for Success

Campbell Arnott’s - The Demand Driven Supply Chain

CATERPILLAR LOGISTICS, INC.: Caterpillar - Relying on Education Services

COCA-COLA BOTTLING CO. CONSOLIDATED: Coca-Cola Bottling Co. Consolidated - Innovation on Tap

CONAD Centro Nord - Optimizing the Re-Ordering Process

CUMMINS: Cummins - Powering Excellence in Warehouse Management

DELPHI: Delphi - Driving Increased Vehicle Customization

DHL: Optimizing Transportation Processes at DHL

DOT FOODS: Dot Foods Case Study

DR PEPPER SNAPPLE GROUP: Dr Pepper Snapple Group - Producing Planograms in a Snap

DSC LOGISTICS: DSC Logistics - Making Labor Management Mission-Critical

EL PALACIO DE HIERRO: El Palacio de Hierro - Supporting Rapid Growth

FAIRCHILD SEMICONDUCTOR: Fairchild Semiconductor - Bouncing Back

FEDERATED CO-OPERATIVES LIMITED: Federated Co-operatives Limited - Delivering Excellence

FLEETPRIDE: FleetPride: Heavy-Duty Return on Slow Movers

GRUPO MARTI: Grupo Marti - Drastically Increasing Sales and Profitability

HELLMANN WORLDWIDE LOGISTICS: Hellmann Worldwide Logistics - Mastering Warehouse Optimization

Hibbett Sports - Increasing Speed to Delivery

JBS SWIFT: JBS Swift Case Study

KAPPAHL: KappAhl - Increasing Profits

L.L.BEAN: L.L. Bean - Improving customer service and inventory productivity

LG ELECTRONICS: LG Electronics - Taking Control

MARVELL SEMICONDUCTOR: Marvell Semiconductor Case Study

MASSDISCOUNTERS: Massdiscounters - Mass Appeal

MITSUBISHI MOTORS NORTH AMERICA: Mitsubishi Motors North America - Driving Supply Chain Excellence

MONSANTO: Monsanto - Harnessing Digital Logistics Transformation

PERNOD RICARD CHINA: Pernod Ricard China - Premium Supply Chain Performance

PETSMART: PetSmart - Planning for optimal customer experience

PVH: PVH - From Product Creation to Happy Customers

ROBINSONS SUPERMARKET: Robinsons Supermarket - The Right Products for Health & Wellness

SANITARIUM: Sanitarium - The Always Available Supply Chain

SEPHORA: Sephora - Finding Beauty in Category Management

SILK CONTRACT LOGISTICS: Silk Contract Logistics - Standardizing Processes and Increasing Speed of Deployment

UTI: UTi Worldwide Case Study

WALGREENS: Walgreens - Delivering health and happiness

WÜRTH INTERNATIONAL: Assembling Perfection - Würth International