A pioneer and global technology leader, IDeaS provides industry-leading revenue management solutions for businesses of all types and sizes in the global hospitality industry. “Our core proposition is to help hospitality companies across the world to increase revenue by providing them with our software which helps them in establishing optimal pricing for their products. We have over 12,000 hotels in the world that use our software. IDeaS was founded over 30 years ago by two gentlemen from India who moved to the US to found the company,” informed Klaus Kohlmayr, chief evangelist officer, IDeaS Revenue Solutions.
With the hospitality industry being a laggard in the application of technology and adoption of revenue management software for optimising pricing, Kohlmayr said, “If you look at the evolution of the hospitality industry, not much has happened since the past couple of years. Also, in terms of adopting revenue management software, with over a million hotels across the world, only 20,000 hotels actually use revenue management software. However, the reality is that we have seen a lot of evolution in technology, especially in India, with the hotels here realising that more and more technology is important for them to optimise services. In India, a prime example is OYO. It has a complete platform and processes based on the latest and greatest technologies. We have seen the innovation curve in hospitality accelerate significantly. Also, our growth trajectory in the company reflects that as well, with more and more hotels adopting our software.”
Speaking about the importance of revenue management software in hotels, Kohlmayr explained that with a complex decision process that a hotel is tasked with, making over 5000 pricing decisions at various touchpoints in a hotel and to get every decision correct is not humanly possible for an individual.
Talking about the USP of IDeaS, he informed, “We are very fortunate because about 10 years ago we were sold to a company called SAS. SAS is the biggest and leading software company in the world. SAS, a four-billion-dollar company has committed one billion dollars in AI and R&D. Being a subsidiary of SAS, we get to leverage with the access to the latest and greatest of models, algorithms and AI technologies. The second thing that we do differently from other software companies is that we incorporate a lot of external data in our algorithms, which we call reputation data which is fed into our pricing algorithm. This helps make real-time pricing better. For example – people leave comments on Tripadvisor and MakeMyTrip and similar OTA portals. So we see the reviews and if a hotel is rated well by the customers on these platforms, it allows us to make the pricing more impressive. The third one that keeps us performing exceptionally than the other software providers is that we make decisions for the hotels and with the hotels, and not just make recommendations to them. We feed all the data and use it in the most appropriate model and AI which will come up with a decision that sends the price automatically to the different hotels it is connected with. So, it constantly revisits the optimality of pricing decisions and automatically sends the information back to all different channels. This obviously discards lagtime and mistakes.”
“We have a very agile software development approach. The three things that we are highly appreciated by our clients are natural language processing which allows the manager of the hotel to interact with the system without having to type anything but just talking to the system; secondly, hoteliers can analyse and run scenarios about a specific pricing over a period of time and how its impact will be and then decide if they want to stick to the recommendations or they want to tweak them. Thirdly, we have launched Investigator which allows the hotelier to see not just the price but also all the other information that has gone in to establish the price,” he added about what makes IDeaS stand out as a software company.
Noting the Indian clientele, Kohlmayr said that most of the well-known companies in India use our software. “Taj Hotels, The Oberoi Group of Hotels & Resorts have been with us for many years now. We are now seeing demand from the midscale segment of hotels too with Lemon Tree Hotels and GRT Hotels also using our software,” he added. Speaking about the future roadmap for IDeaS, Kohlmayr underscored, “We are pioneers in bringing revenue science in which we take a lot of data and in turn help the hotels make money through mindful assessment of the data. The concept can be extended from just guestrooms to meeting rooms, F&B and also to optimise labour and other operations. It will be our major focus in the forthcoming years.”