Nothing divides revenue managers more than the discussion around artificial intelligence and machine learning. The two schools of thought fall into the category of technophobics and technophiles, with AI-enthusiasts on one side and Luddites on the other. As usual, in medio stat virtus, so it's time to ask the right questions about the use of AI, ML, BI, blockchain, advanced analytics, etc. in our industry. What, if any, technology(ies) can facilitate the work of revenue managers? And will revenue management as we know it disappear with the rise of AI?

Raul Moronta
Raul Moronta
CRME, CHIA, Chief Commercial Officer at Remington Hospitality

Over the last 10 years, there have been great advancements on hotel revenue management systems, especially in the areas of price optimization as well as inventory controls. With most major brands and independent hotels on high performing markets adopting customized systems, these applications have proven to be essential for the revenue management in today's world.

Revenue management systems and AI rely on predictive modeling, which produce a desired outcome. However, the recent pandemic has re-emphasized the fact that the human element is still the most vital for our business. Unlike other industries, hospitality still relies on human behavior and human actions and execution, which at times can be unpredictable. Same as ATM machines did not replace bank tellers, I believe our roles in the future would become less task-oriented and more strategic. These tools provide us the information we need to make decisions, however they do not replace the process completely; it simply sets us on a level playing field with our competitors. How can we outsmart our competitors with their same technology? Human ingenuity, combined with great tools and systems, is the key to outperforming in our own markets. I strongly believe in the curiosity and competitive nature of the human spirit, one that, while aided by technology, it is an independent thinker and a leader in its own right.

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