How is LodgIQ Different?

LodgIQ's core mission is to re-imagine Revenue Management through the lens of AI, ML and BigData. That means a completely cloud native and BigData driven application, ground up AI-ML engine, presented in an intuitive user interface. Having stated that, there are 4 key tenets which sets LodgIQ apart.

1. Algorithmic Discovery

LodgIQ’s patent-pending Market Forecast algorithm helps identify profitable opportunities for both immediate and far out future dates. This is available both at market level as well as individual hotel level.  

Taking multi-textured data into account (market demand patterns, market pricing, events, flights, weather, and economic indicators) LodgIQ market forecast algorithm provides valuable insights for 365 days into the future that offers visibility into market (or sub-market) performance. The forecast predicts KPIs like Occupancy, ADR, RevPAR, market pricing by hotel rating. It also estimates impact of events on KPIs. This information helps hoteliers understand the market booking pace and compare with their own hotel bookings.

This predictive information on market and hotel level helps the algorithm to estimate their guest’s willingness-to-pay, which is especially useful for pricing optimization.

LodgIQ outside-in forecaster can predict demand and price 365 days out with 95%+ accuracy within a 90 day lead time across 100+ global markets.

2. Adaptive Algorithms

Many hotels are starting out fresh and have little to no data. Several others have lost key blocks of critical data. Yet there are others who have experienced an unforeseen once-in-a-lifetime event like a devastating hurricane, and of course, Covid-19!

Adoption of sophisticated algorithms is impeded by availability and accuracy of data.

Enter adaptive algorithms - which can start with little to no data and continuously introspect data and mutate themselves as more and more data accumulates over time.

Algorithms will progressively enhance to higher levels as more data accumulates and gracefully degrade to lower levels when key data blocks are missing!

3. Automation

LodgIQ's Cloud native applications are managed and monitored by robotic bots.

LodgIQ Management console is a centralized command and control system to onboard, operate and verify properties across time zones, currencies, and policies.  

This is accomplished in a completely automated fashion where automation robots open browsers, login to the application, view pricing and forecasting tiles, and generate alert notifications when key information is missing. The screenshot below shows such automation in action - day in and day out!

LodgIQ Management Console helps a team of 2 revenue specialists manage 100+ hotels using automation and robotic verification. 

4. Revenue Lift and Penetration Indices

At the end of the day, the point of sophisticated algorithms and superior technology is to ensure a healthy lift in revenue and improved index e.g. RevPAR Index. This will prove the effectiveness of such tools and will also ensure that users can consistently meet and beat the competition.

LodgIQ draws inspiration from the financial industry and conducts regular backtesting to evaluate the performance of the models by going back in time and executing the models to estimate lifts and index improvements.

The image below shows LodgIQ Backtesting results to evaluate revenue lift using different pricing algorithm levels for January and February 2020. While the current pricing will generate a revenue of $167K in Jan and $538K in Feb, LodgIQ prices (Level-3) would deliver a revenue of $182K in Jan and $621K in Feb.

A critical point to note here is that the earlier the prices are deployed, the better yields experienced.

Through a paradigm shift away from traditional revenue management, LodgIQ utilizes a completely self-driving engine to collect and cleanse data, feed to an ML pipeline and generate demand forecasts, price optimization, and prescriptive (stay-controls, channel management, pricing controls) suggestions.

LodgIQ accomplishes this both at-scale and also at-cost, thus ensuring that the solution is within reach for everyone - from a small independent to the largest branded chain.