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?

Federica Salvatori
Federica Salvatori
Revenue & Commercial Strategy and Founder of Federica Salvatori Consulting

Revenue management has evolved and will always do, but not only because of technology. Surely, it will go toward a more holistic approach (applied not only on rooms but also on the other revenue streams) and will have an increasing focus on profitability and the customer.

As for technology and AI and ML, they cannot be a threat, they are facilitators and help optimizing human time and results. We need to surrender to the fact that they process manual and counting works better than us.

BUT behind all these systems there should always be a strategist, in order to set and use the tool according to a hotel strategy and goals. 

AI+HI is the right combination.

So, the figure of revenue manager will not disappear but evolve for sure into a more complex and strategic one, ideally leading all the sales, revenue and marketing processes of the hotel. All these departments should work together in the same direction guided by a strategic mind.

Finally coming to the questions about technologies that can facilitate RM optimization, apart from the very basis (PMS, CM, BE) we come to:

  • RMS with AI and ML which also take into consideration the profit
  • BI to analyze the market and the customer
  • CRM because RM should be customer centric
  • CHATBOTS with ML, because they are focused on the customer and useful to sell up and cross

The secret for this tech stack to properly work is INTEGRATION! Therefore, keep this in mind when choosing a new tool. AI, ML and access to big data are bringing another phenomenon: a customer centric approach and a hyper personalization. This will bring soon or later (hospitality never comes first when talking about technology and digitalization) a ABS approach (Attributed Based Selling)….. let's get ready for this huge revolution in the technology

View all 11 views in this viewpoint