Pricing Optimisation Model for a Leisure and Hospitality Operator

The organisation sought to optimise its pricing strategy ahead of a critical peak season to maximise net revenue. They required a sophisticated, data-driven model to understand demand elasticity and identify revenue-maximising price points across a complex product mix and diverse operational variables.

The organisation needed a pricing model that could confidently forecast the impact of changes across its complex product mix and diverse operational variables including time of day, season, and location. Existing approaches lacked the analytical rigour needed to test pricing assumptions and understand demand elasticity.

MXA delivered a focused four-week project. We analysed historical booking data and segmented it across key variables to establish performance baselines. A critical innovation was estimating unconstrained demand — accounting for demand lost when sessions sold out — using advanced booking curve analysis. We restructured pricing inputs around base prices with defined premiums, enabling direct modelling of price elasticity. We integrated these analytics into a comprehensive model providing detailed Business Intelligence outputs to visualise the impact of price changes on key metrics.

MXA delivered a robust pricing model enabling confident, data-driven pricing decisions. The model identified optimal price points to maximise net revenue for the upcoming season. The estimation of unconstrained demand provided a significantly clearer understanding of true market potential. The structured outputs allowed management to test various scenarios and align on a strategy balancing revenue growth with occupancy targets.