Your data isn’t wrong. Your constellation is.
Revenue managers interpret identical data differently based on personal filters and context, making decision-making more subjective than objective.
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I created a workshop called "Dissecting distribution" — some of you have been part of it. The aim is to check which data set is more important than the other. We put different groups and let them plot the datasets by importance by demand period — H M L and Event.
The conversations are easy until around data set 8...then the fun starts when one says: "ok but hang on...what about...?!?!".
One wants price more important than forecast, another comp rates above my own rates, another OTB ahead of Forecast....at some point, it stops being a discussion and it turns into a debate about which data point mattered most.
PS: Call me if you want to run this with your teams — you will be amazed by what you get out of it.
the illusion of "the one truth"
Revenue management loves the idea that there is a right answer hidden somewhere in the data. If we just analyze enough, compare enough, slice it differently, we'll find it.
But you know what....and that will hurt: The moment you look at a number, you've already made a decision. You've decided what to compare it to. Pickup. Pace versus last year. Pace versus forecast. Day of week patterns. Segment performance.
What just happened? The same number becomes ten different signals depending on what you place next to it.
data is never just one dimension
Take something simple like on-the-books. On its own, it tells you almost nothing.
Now compare it to last year. Suddenly it's good or bad. Compare it to forecast. Now it's ahead or behind. Look at pickup trends. Now it's accelerating or slowing. Break it down by segment. Now it's strong in one area, weak in another. Same data point. Completely different stories.
this is where the real decision happens
You decide what the data says because you decide what you focus on.
That internal filtering of yours is everything, yup....subjectivity :-) It decides which signals you amplify and which ones you ignore. It shapes your entire interpretation before you even make a move.
And now we finally know: This is why you can give the same dataset to ten revenue managers and get ten different answers. Nope, not because the data is unclear....but because those pinky pie cool AF lens you are throwing at it is.
dating makes this painfully obvious
Think about dating for a second. You know this had to come: You meet someone new. You get a set of "data points." How they look, how they speak, what they do, how they behave.
Now watch what happens: One person focuses on appearance. Another on personality. Someone else on ambition. Another on humor. Someone prioritizes stability, someone else excitement.
Same person. Different filters. Different conclusions. Some will say "perfect match." Others will say "not for me."
the cost of acquisition argument
Let's bring this back into something more practical. Something that gets your emotions all psyched up: Cost of acquisition.
We all agree it's important. It's in every discussion, every strategy, every presentation. Now put it into context:
You're sitting at 20% occupancy. Your forecast says you'll maybe reach 30%. Someone offers you business that takes you to 90%, still at a profit, but with higher acquisition cost. Do you take it?
If you don't, you're not being strategic. You're being ideological. Because suddenly, people start justifying why they shouldn't take it. "It's not our target segment." "It's not premium enough." "The cost is too high."
All technically valid arguments. But they are built on a filter that ignores the actual outcome: More revenue.
when the same data flips
Now take the opposite scenario: You know you're going to be full. Demand is strong. You're heading towards 100%.
Now cost of acquisition becomes critical. Suddenly, every percentage point matters. Now you care about channel mix, profitability, displacement.
Same metric. Different importance. Different decision.
Context decided whose the data top dog.
making more money is not emotional
At the core of it, revenue management is actually very simple: You want to make more money. Period.
Not making money in theory. Not your fancy presentations. In reality. That's it...make more money!!!
But humans, yes you and me, complicate it. We attach meaning to segments. We create preferences. We justify decisions based on comfort, habits, or past experiences.
We say things like "this is better business" or "this fits our positioning." Sometimes that's true. Sometimes it's just your filter talking.
the takeaway
Your data is not telling you what to do. It's giving you options.
The decision happens in how you connect those data points, how you prioritize them, and how you adjust that prioritization based on context.
and that is YOUR constellation. And that is why YOU add the value you do.
Love, Fabi
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