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BACS2013 MANAGEMENT INFORMATION SYSTEM Tutorial 5Case Study QuestionCase Study 2: Marriott's New Revenue Management System Yields Success Marriott International, Inc., is a US$9 billion (about RM31.5 billion) company operating2.600 hotel properties worldwide. Like other hotels, Marriott must keep its rooms filled with guestspaying the highest rates that can be charged in order to maximize revenue.Figuring out how much to charge for each room used to be a major challenge. On high-demand nights, Marriott has to be careful not to sell out early at low rates. On Sundays and slowerdays, it needs enough rooms offering low rates to attract customers but not so many that it wouldbe giving away rooms that could command higher prices from someone elseMarriott had developed two revenue management systems. A demand forecasting system(DFS) served the chain's full-service hotelsand a revenue management system (RMS) backedselect-service or extended-stay properties, such as the Courtyard hotels. However, running twoseparate revenue management systems kept the hotel chain from easily analyzing US$62 million(about RM217 billion) reservations annually at all of its properties and they were expensive tooperate.In 2001, Marriott began building a new enterprise-wide revenue management system calledOne Yield that is now used by 1,700 of the company's 2,600 properties. From the beginning, theleaders of the project linked the business value of One Yield with the company's goals ofprofitability, preference and growth. They explained the technical aspects of the system to thebusiness audience in terms that the audience could understand and value.To obtain information requirement and support for the new system, the development teamconsulted the future users and the buyersof One Yield (individual Marriott properties pay for theirinformation technology installations). The team maintained close communication with thefield through Marriott's director of inventory planning, Russell Wesley and was able to exchangefeedback with users and general managers (GMs). GMs could ask questions about cost and impacton staff. Users could ask questions about new features or old ones that weren't going to be carriedover to the new system. Wesley used monthly press releases to provide updates on project status,pilot tests, training tools and costs.Users identified two important new features to be incorporated into One Yield: an overridebutton and what the users call the "Monday morning quarterback". The override feature enables theuser to reject One Yield's rate recommendations before they are sent to the central reservationssystem. In cases where the local revenue manager has information that One Yield does not, such as