Hotel solutions provider HRS has introduced new hotel rate
projection technology powered by augmented artificial intelligence that has
been built into the company's standard sourcing service. Augmented AI differs
from standard AI in that it runs multiple data models instead of a single
routine. HRS models leverage advanced prediction algorithms used by financial
institutions, social networks and large e-commerce marketplaces. The models are
then combined and validated for accuracy. An automation function reviews all
results and selects the model/output with the least degree of error.
Factors that impact the analysis include: long-term rate
patterns, including seasonality; short-term local events driving occupancy
rates; benchmarked corporate rates destination-wide; benchmarked corporate
rates in a client's vertical and/or volume category; algorithms measuring
average errors in past projections; intelligent compilation of forecast models
to enhance destination-specific accuracy; traveler search and booking data; and
consistent, enhanced incorporation of machine learning for each destination.
HRS added that the model uses multiple years of historical data and is running
at 97 percent accuracy.
HRS has been testing the technology with a few BTN Corporate
Travel 100-sized clients for about six months, and they are using it for their
current sourcing season. It's too soon to estimate how much savings can be
attributable to the new augmented AI technology, but a spokesperson confirmed
that clients using the new rate projections have been able to keep 2020 rate
increases minimal or even secure deeper discounts.