Revenue Management

Who:   Large Tour Operator/Wholesaler

Problem:  Develop a methodology for analyzing and forecasting Gross Operating Profit contribution from specific vacation products.

Solution:    Imploring the principles and measurements of Economic Value (EV) and Economic Profit (EP), HDCG professionals developed a dynamic model capable of calculating a specific vacation product’s contribution to the corporate Operating Profit.  Utilizing a variety of value drivers, the model can calculate the Operating Profit from a historical perspective or forecast future performance.

Result:   The output of the model became a core component in the company’s monthly, quarterly and annual financial performance analytics.