How Artificial Intelligence is Revolutionising Hotel Revenue Management - 0 views
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With the help of data and analytics, revenue managers, from the get-go, have been predicting and shaping the customer path to purchase.
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evenue management in hospitality existed even before this, but it was in its infancy. Only a few accommodation providers were utilizing it.
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Talking about the role of revenue manager, it has evolved to a great degree. A few years back, the job of a revenue manager was only about collecting, compiling data, and analyzing data to decide hotel rates.
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Technology like AI is fast becoming a significant part of a hotel’s operations. From a hotel website chatbot to predicting guest behavior, AI is being deployed everywhere.
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At present, an Al-based hotel revenue management system can process millions of data in a fraction of time. Not just that, with machine learning, it can compile them, bringing a lot of valuable insights to the table and also learn about customers’ behavior.
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Guest patterns or you can also call it guest behavior is critical for a hotel. Because it isn’t static and keeps changing with time and circumstances. Therefore, a hotel must be able to identify and attend to them
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Most AI-powered systems are designed to digest, translate and identify patterns in a large amount of data
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Detailed and data-driven guest personas are important for efficient revenue management. But creating guest personas manually or using traditional methods have a few flaws. This is where automatic and data-driven persona creation is used.
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When we talk about personas, there’s also something called the propensity model. If you aren’t aware of the propensity model, it is basically a scorecard that is used to predict the behavior of your guests or prospect base.
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With predictive analytics and machine learning, revenue managers can predict how customers’ preferences and past behavior will lead to future purchases. As a result, they can optimize the revenue channels of a hotel precisely.
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There are times when hotels run guest discounts and they don’t invest much to analyze it. They fail to determine whether these discounts are worth it
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hotels can easily monitor every discount or promotional campaign and determine which ones are delivering good results and which ones aren’t.
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As machine learning algorithms already have access to all the data, it understands relationships between the different data fields related to your hotel’s offering, giving a more predictable outcome.
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Not to mention, these ML-powered systems will continue to learn, optimize, and adjust over time. Meaning, it will just get better and better
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But with an AI-based system, you can continually monitor every channel and let the system alert you about potential risks. Further, these systems are usually fed with specific metrics and conditions for risks, and whenever it finds something that matches the conditions, it sends an alert.
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However, many might argue that artificial intelligence for hotel revenue management would rule out human jobs. But in reality, AI, ML, and other sought-after techs are more likely to work in collaboration with humans going forwar
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AI has tremendously helped the hotel industry especially in the realm of revenue management. Instead of having to compile mountains of data and make calculations by hand, we have AI software that can not only analyze all the compiled data, make predictions based of trends, and set rates but it also learns from this data to become smarter with time.