Revenue management is not what you think it is anymore. Is it time to break up?

revenue management ...oh boy...

We’ve all learned it: Blablabla “Sell the right product, to the right customer, at the right time, at the right price, in the right place.” Big RM lie: Marketing had it, sales had it....so really RM was just a copy cat.

Back to the point: It sounds clean. Structured. Controlled. Even "cool" to some people.

Oh yes, and it sounds so much like you da boss. You are in charge! Feels good right!?!?!

But, big BUT: its only the illusion of control

That whole idea comes from a world where you had control over most of the levers. You controlled your pricing. You controlled your distribution. You controlled your visibility. You controlled, to a large extent, how and where customers found you.

So the logic made sense. If you align all the pieces correctly, you win. Happy days!

now look at reality

Today, your product is shown next to ten others you don’t control. Your price is compared in real time, often reframed, bundled, or discounted through channels you don’t fully own.

Your “place” is no longer your website or your front desk. It’s Google, it’s OTAs, it’s metasearch, it’s apps, it’s platforms you didn’t build and don’t fully understand.

And your customer? They don’t follow your funnel. Honestly, they don't give a flying donkey about your funnel.

They jump between channels, get influenced by algorithms, recommendations, rankings, and “people also booked” logic that sits completely outside your control.

Meet the "new" middlemen: the algorithm

The biggest shift is not anymore pricing. It’s totally about power and has been for some time.

OTAs, search engines, and now AI-driven recommendation layers are deciding who gets seen, in what order, and under what conditions.

To make it clear: Nope, not only do they distribute your product, the actually decide IF you are even part of the consideration set. Hear this again: THEY decide!

So when we talk about “right customer” and “right place,” we need to be honest: Their right customer, their place, their rules.

the dating version of this mess (You knew this was coming)

There was a time where you met people directly. Through friends, through work, through real interactions. You had influence over how you showed up and how the relationship developed.

Now? You’re on a platform. Your profile is shown based on an algorithm. You are ranked, filtered, compared, and sometimes not shown at all. Someone else decides whether you appear in the first place. Some apps right now even measure your attractiveness so you only get shown to people in "your league" as to not piss off the race horse when its gets shown a tall donkey.

You can optimize your profile all you want. But if the platform doesn’t push you, you don’t exist.

so what should you actually be doing now in revenue management?

You’re not “selling the right product at the right time” anymore. You’re actually optimizing for visibility within systems you don’t control.

You’re trying to influence: how you are positioned, how you are perceived, how often you appear and how likely you are to be clicked

That in itself it a totally different game. You are starting before you even get clicked.

and then there is reality

A lot of revenue management still operates as if the old model exists. Well, even revenue management systems do, by pushing "price" and "restrictions" as the holy grail.

And Revenue Managers? We tweak prices, adjust restrictions, analyze pickup, and believe we are driving the outcome. Meanwhile, distribution platforms are reshaping the playing field in real time.

They bundle your rates, rank your property, highlight competitors, personalize offers, and influence the customer long before they ever reach your “strategy.”

So you’re optimizing inside a system that is already influencing the outcome before you even get a say.

Yes, the game is already predefined because in difference to you: They do not care if you get booked or someone else as long as it is booked on their platform.

AI is accelerating this and creating a two class society.

With AI-driven recommendations, dynamic personalization, and predictive sorting, this gap gets even bigger. Please remember this: AI is ruthless. It optimizes for an outcome.

AI doesn’t just show you 50 options to choose from. No, it chooses a few "because it suggests what the guest should want." Even if it has to invent hotels or place doesn't exist: Here

Even though AI comes across like this cut Golden Retriever, let's be clear: It's not your friend. You are not on top of the game, you are out - two classes: those who are good get better, those who are not do not exist.

so is revenue management dead?

No. Not at all. Supply and demand. Game theory. Forecasting.

But the old definition is dead. The idea that you are in control of product, customer, time, and place is outdated.

Your role is shifting. From controlling the outcome…to influencing the system. You are not the star player anymore. Neither are you the coach. You are the advisory board now. PS: Congrats on your promotion

Understanding how visibility works. How ranking works. How perception is created before the click. How your inputs feed the algorithm. This is now your new gold dust and that comes with an entire new jargon and language.

TLDR:

Revenue management is no longer about perfectly aligning five variables. It’s about navigating an environment where those variables are partially controlled by someone else.

The faster you accept that…the faster you start playing the actual game.

Love, Fabi