CASE STUDY Uncovering the True Revenue Lift Behind Promotional Pricing for a Global Hospitality Leader A global hospitality enterprise needed a reliable way to determine whether promotional room pricing programs actually generated incremental revenue. Traditional analytics could not distinguish between true promotional impact and normal market fluctuations, thereby limiting leaders’ ability to make informed pricing decisions. KPI Partners applied AI-driven causal inference techniques to measure the true impact of promotional pricing initiatives accurately. By creating fair comparison groups and applying rigorous statistical techniques, the solution revealed a measurable revenue lift across hotel categories, thereby strengthening the client’s pricing strategy. The framework improved forecast accuracy, enhanced decision-making, and established a scalable approach for evaluating future promotions with confidence. www.kpipartners.com Case Study: Measuring True Pricing Impact for a Global Hospitality Enterprise Enterprises in the hospitality industry frequently run pricing promotions, but often struggle to determine whether these programs deliver revenue changes. This case study demonstrates: • How AI-driven causal inference techniques isolate true incremental revenue, separating promotional impact from external market effects. • How synthetic comparison groups enable fair, accurate evaluation across varied hotel types. • How KPI Partners delivers a scalable pricing experiment framework that improves forecast accuracy and accelerates decision-making. The client required a precise method to assess the actual impact of price discounts versus expected performance. Key challenges included: • Unreliable measurement: Previous methods failed to isolate causal lift.v • No natural control groups: The diverse property types made a fair comparison difficult. • Promotion variability: The use of different discount levels across markets resulted in inconsistent outcomes. • Forecast uncertainty: Leaders lacked confidence in predicting future promotion performance. • Experiment design complexity: Proper assumptions, controls, and comparison groups required specialized expertise. • Industry: Global Hospitality • Focus: Pricing & Revenue Optimization • Engagement: Causal Measurement Framework for Promotions • Scope: Multi-market promotional testing Delivered meaningful incremental revenue in tested markets by accurately identifying whic pricing promotions generated real lift. Significantly improved the accuracy of measuring true pricing impact, surpassing previous methods and strengthening leadership confidence. Enabled more confident promotional planning through significantly enhanced pricing impact forecasts. Accelerated decision cycles with automated reporting and clear promotional performance insights. The client is a global leader in hospitality, operating a diverse portfolio of hotels across major urban, airport, suburban, and interstate markets. With high demand variability across locations, the organization relies on promotional pricing to influence occupancy and revenue. To strengthen its pricing strategy, the client partnered with KPI Partners to measure the true revenue impact of promotional discounts. Traditional analytics could not isolate causality, making it difficult to understand which promotions genuinely worked and why. Over a four-month engagement, KPI Partners designed a scalable approach to creating fair comparison groups, measuring causal lift with confidence, and identifying how different hotel categories responded to discounts. This enabled the client to refine promotions, improve forecasts, and adopt a repeatable model for evaluating future pricing initiatives. Client Overview TL;DR: Key Takeaways Challenges At a Glance Key Results 5% Higher 30% 20% Revenue Uplift Accuracy in Causal Measurement Faster Decision-Making Improvement in Forecast Accuracy KPI Partners applied AI-driven causal inference algorithms to accurately assess the impact of promotional pricing initiatives. By leveraging advanced statistical and machine learning techniques, such as synthetic control modeling and difference-in- differences analysis, KPI isolated true incremental revenue attributable to each promotion. The solution delivered a modular analytical framework that can be applied across various markets, property types, and promotional scenarios, providing a consistent and repeatable method for evaluating future pricing strategies • AI-Driven Causal Inference: AI-driven causal inference techniques are employed to isolate the true pricing impact and eliminate external market noise. • Synthetic Comparison Groups: Data-driven baselines that closely mirror test properties, enabling accurate lift measurement. • Promotion Impact Evaluation: Clear visibility into how incremental revenue varies across urban, airport, suburban, and interstate hotels. • Automated Reporting & Insights: Decision-ready outputs and visual summaries for commercial and revenue teams. • Scalable Methodology: A modular design that extends easily to new markets and promotional tests. • Operational Efficiency: Standardized data preparation reduced the effort required to onboard new market data by 40%. Our Solution Solution Highlights “KPI Partners helped us finally understand the true impact of our pricing promotions. Their structured approach provided us with clear and defensible insights into which strategies were genuinely driving revenue growth. For the first time, our revenue teams can make pricing decisions with full confidence, backed by measurable results rather than assumptions. KPI Partners has set a new standard for how we evaluate promotions across our global portfolio.” — VP, Revenue Management, Global Hospitality Enterprise Why KPI Partners? KPI Partners combines pricing analytics expertise with AI-driven causal inference to help enterprises move beyond assumption-based decisions and quantify true revenue impact. Our structured approach ensures that promotional decisions are based on statistically reliable insights rather than assumptions. By designing fair comparison groups, isolating incremental revenue, and delivering clear, actionable results, KPI Partners enables organizations to optimize pricing outcomes across diverse markets and property types. With a framework that scales across future promotions, KPI Partners empowers commercial and revenue teams to make faster, more informed, and more data-backed decisions. About KPI Partners About KPI Partners KPI Partners is a global strategic partner for Analytics and Digital Transformation solutions, delivering advanced capabilities in Data Science, GenAI, AI/ML, Cloud Databases, Data Engineering, Analytics & Visualization, and DevOps/DevSecOps/MLOps. Founded in 2006 and headquartered in Newark, California, KPI Partners supports a wide range of clients, including several Fortune 500 companies across industries such as high-tech, retail, CPG, financial services, insurance, manufacturing, and life sciences. Recognized by Gartner, the company has completed over 1000 successful projects for more than 300 clients. With a global team of 600+ consultants located across North America, Latin America, and India, KPI Partners offers deep industry expertise and broad delivery capabilities. Offices are located in Silicon Valley (HQ), Boston, New York, Atlanta, Los Angeles, Guadalajara (Mexico), Bangalore, Hyderabad, and Pune. +1-510-818-9480 info@kpipartners.com www.kpipartners.com Schedule a Consultation