Problem 2 InterContinental Hotels Group (IHG) is the world's largest hotel group based on the number of rooms. Through its various subsidiaries, IHG owns, manages, or franchises over 4500 hotels and more than 650,000 guest rooms in nearly 100 countries and territories worldwide. Following the great success of the airline industry with adopting a wide variety of revenue management techniques (dynamic pricing based on demand, capacity-controlled discount fares, overbooking, etc.), the hotel industry recognized that it could adopt some of the same techniques to substantially increase its revenues. An OR team began development of a sophisticated revenue management system in Jarkvary 2008. This system includes (1) a market response model that describes demand as a function of price and other driver variables, (2) analyzing the rate policies of competitors, (3) a model for measuring the revenue benefits of various pricing policies, and (4) a price optimization model. Substantial testing was done to test various versions of this system before adopting a final version. Individual hotels now have revenue managers implementing the system with the support of a corporate revenue management team. Initial implementation of this system achieved $145 million in incremental revenue. This is expected to grow to approximately $400 million in additional revenue per year. Source: Koushik, D., J. A. Higbie, and C. Eister: "Retail Price Optimization at ImterContinental Hotels Group, Interfaces, 42(1): 45-57, Jan-Feb. 2012. Briefly describe how revenue management was applied in this study; then list the various financial and nonfinancial benefits that resulted from this study