Data & drivers
Price and promo lift — without a fantasy elasticity
Lift is what happens to the path when you change a price or a promo you actually control. It is a scenario on a model that has seen similar moves — not a 2.4 elasticity copied from a textbook onto a fare class, a kWh tariff, or a SKU.
Updated Aug 26, 2026·8 min read
Price and promo are levers
Lift is what happens to the path when you change a price or a promo you actually control. Hotel ADR, a kWh tariff, a fare class, a retail discount: same math family, different politics. It is a scenario on a model that has seen similar moves — not a 2.4 elasticity copied from a textbook.
If the model never saw 30% off
Extrapolating outside the support of history is how you discount into a hole. If you have never run a 30% fare sale in that cabin, the scenario should say so. Foundation models are not a license to invent a demand curve. They have seen other series. They have not seen your brand in a price war.
- Known-ahead flags for promos you already approved. Not same-day 'lift' leaked from actuals.
- Price as a series you will have at origin — the planned tariff, not the cleared market.
- Compete-with-yourself: a promo that steals next week is negative lag, not a win.
Lift that steals next week
Travel and grocery both hang over. Energy less so, unless you shifted load. Look at the week after, on a backtest, with the flag on. If discovery can only find “up and to the right,” ops will notice the hangover anyway — in occupancy, in pantry loading, in a dead Wednesday after a long weekend sale.
Run the path with it on and off
Change price or promo on a live Predict.ai goal and you get the new path next to the base — same model, same horizon, interval still attached. That is lift you can take to a pricing meeting. Driver discovery will have already tried the price series; if it failed the folds, the scenario should be humble.
Marketplace and internal signals (competitor fares, fuel) only help if they will exist at origin. A scraped fare you cannot rebuild at 6am is a research project, not a feature.
FAQ
- Can I use a published elasticity?
- As a prior, maybe. As the plan, no. Elasticity is local: fare class, hour, remaining capacity, brand. Estimate it on your series or you will discount into a hole.
- How do I know the promo stole future demand?
- Look at the week after, on a backtest, with the promo flag on. Negative lags are allowed. If discovery can only find 'up and to the right,' ops will notice the hangover anyway.
Keep going
Guide
What-if analysis for forecasts
A what-if is a second forecast under a change you control — price up 8%, a promo pulled, a plant offline. You compare paths, not opinions. The point is not a perfect simulation; it is catching the decision that only looks cheap this week.
Guide
Forecasting with covariates
A covariate is an extra series the model is allowed to see — a promo flag, a temperature, a price. Used well, it explains swings the target's past cannot. Used as a dump of every column you have, it just overfits last quarter.
Guide
Occupancy and travel demand
A hotel night and a flight seat perish at midnight. The forecast is pickup along a booking curve, not only yesterday’s occupancy. Price is a lever you set; remaining capacity is the constraint. Those two belong in the same conversation.
Use case
Promotion performance forecasting
Estimate promotion lift, product substitution, margin impact, and the demand that remains after a campaign ends.
Use case
Travel pricing forecasting
Forecast market prices and willingness to pay by route, property, departure, segment, and booking window.