Jennifer Hill, VP of Client Engagement, explains the two core components that make up Kalibri Labs’ proprietary Optimal Business Mix (OBM) algorithm. The first phase is a much more in-depth look at the competitors in the market which goes far beyond the current subjective nature of selecting a traditional comp set. The competitive benchmark group defined by the Optimal Business Mix algorithm looks across all the reservations in the market and breaks them down by rate segment and weekpart, in order to find similar business that the subject hotel could have realistically competed with on that day for those room nights.
With Optimal Business Mix, a hotel is no longer limited to comparing against the average of a fixed group of hotels for all of their business. Instead the hotel can focus on the best they can possibly achieve for each rate segment and weekpart. This means the subject hotel likely competes with a much broader set of hotels than they have in their current traditional comp set. The Optimal Business Mix algorithm can identify the competition by specific rate segment and weekpart, producing a much more highly targeted unique benchmark group for each segment and weekpart, like weekend group vs. corporate weekday.
The second major piece to the Optimal Business Mix algorithm is the actual optimization component where we compare your historical performance with the optimal availability in your market. We are able to parse out and identify the capturable business in your market and show you which of those room nights are available from which of those competitors so you can focus your efforts on activating strategies that drive that business back to your property.