Hello, I’m Ferdi, a data science intern at Bukit Vista, where we’re constantly innovating in the realm of property management. In today’s article, we’ll explore two significant technological advancements that showcase our commitment to dynamic pricing and efficient operations. These advancements not only streamline our processes but also offer deep insights into the impact of our pricing decisions.
Enhancing Dynamic Pricing Through Machine Learning (ML) Model Migration
The Challenge of Scaling Machine Learning Models
In the ever-evolving landscape of dynamic pricing, we faced a challenge with our Machine Learning models. Initially, these models were hosted on the same server as Flask, which processed logic and user requests for most of our tools. Each model, roughly 100 MB in size, consumed considerable memory resources and time for loading and prediction, making the system less scalable as we added more models.
Our Solution: Leveraging AWS Sagemaker
The migration of Machine Learning models to a separate server using Amazon’s AWS Sagemaker has notably enhanced the performance of our Flask server. By offloading the computational tasks to Sagemaker, we have achieved:
- Improved Server Performance: The Flask server now handles requests more efficiently, as the intensive computation for predictions is processed by Sagemaker.
- Reduced Operational Costs: Shifting to a cloud-based solution minimizes the need for extensive on-premises infrastructure, leading to cost savings.
- Scalability and Flexibility: AWS Sagemaker offers scalability, allowing us to adjust resources according to demand, ensuring consistent and reliable service delivery.
This strategic move has resulted in a more robust and cost-effective system, significantly benefiting our operational efficiency.
The Limitation
However, this solution does come with a limitation. Custom algorithms or logic models don’t integrate well with Sagemaker, necessitating an additional technology, AWS Lambda, for such cases.
ATLAS Monitoring Dashboard: Insight into Revenue Impacts
The Problem: Tracking Revenue Impact of Pricing Decisions
A crucial aspect of dynamic pricing is understanding the revenue impact of each pricing decision. Our team, including my colleague Felix and I, have been logging a year’s worth of pricing decision data from our revenue managers. The key questions were: How do these decisions impact revenue, and who is generating the most revenue from these decisions?
The Solution: Revenue Leaderboard Visualization
We developed the Revenue Leaderboard Visualization, a tool that illustrates the number of decisions or price changes made by each user and the resulting revenue generated. This tool offers a clear, quantifiable measure of the effectiveness of pricing decisions, playing a vital role in our dynamic pricing strategy.
Limitation
There are some limitations to this solution. Currently, most bookings from Booking.com are not included due to the complexity of integrating their data with Beds24 Room IDs. Additionally, the revenue from bookings is attributed only to the last pricing decision that triggered the booking, even if previous decisions had set the same price.
Conclusion and Invitation
At Bukit Vista, our journey in enhancing dynamic pricing strategies is continuous. Through technological advancements like ML model migration and the ATLAS Monitoring Dashboard, we are not only optimizing our operations but also gaining valuable insights into the effectiveness of our pricing decisions. This is just the beginning of our journey in revolutionizing property management through data science and technology.
We invite you to be a part of our innovative team. Whether you’re a data science enthusiast, a technology expert, or someone passionate about the hospitality industry, there’s a place for you at Bukit Vista. Join us in shaping the future of dynamic pricing and property management. Explore career opportunities with us at Bukit Vista Careers.
Join the Bukit Vista team and be at the forefront of transforming the property management industry through dynamic pricing and cutting-edge technology.