How AI is changing hotel revenue management

Big data has been great for revenue management, but it also increased the need to find relevant data in these new data sources

Historically, revenue management has relied on previous trends to predict the future - but today’s hotelier is faced with a number of industry challenges from changing consumer behavior to shift in business and leisure travel patterns to pop culture influencing travel like never before.

Key takeaways

• Artificial intelligence allows hoteliers to solve for those industry challenges, including using AI and machine learning to optimize pricing algorithms for maximum profitability;
• AI also allows for greater margin optimization, as AI can not only used for traditional revenue management but also to incorporate venue spaces, restaurants and other revenue centers;
• AI or generative intelligence also makes it possible to optimize operational aspects—such as duty rosters—based on forecasted guest presence (arriving and departing and mix of clients, as well as use of restaurant and others) and assign rooms to arriving guests based on guest preferences, taking into account expected arrival and departure times and customer segments.

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