There have been intense discussions over whether AI-driven revenue management tools are going to replace human intelligence offered by the hospitality revenue manager. To help elaborate on the subject, a deeper understanding of AI and the role it plays to enhance the system is necessary.

The AI-powered revenue management system is undoubtedly a savior when it comes to performing tasks like competition analysis, forecasting, price optimization, inventory control, consumer behavior, and so on. The hotels rely on AI tools to figure out these tasks but are also aware that they cannot replace human intelligence on many levels. 

A garage door senses the car nearby and unlocks the doors; the system is eliminating the presence of a chauffeur but creating a job opportunity for a laborer, since he is the one who installs the system. Likewise, there are two significant reasons why AI is not ready to replace Human intelligence yet.

To suggest and to implement are poles apart.

To suggest is what the AI-powered tools are designed for, but it is only applicable if the suggestions are translated into decisions by human intelligence, here lays the world of difference. As a business owner in the area of hospitality, knowledge of when to depend on AI and when to confide to human intelligence will attract only aces and provides the business a paramount value. 

The hotel managers, in turn, are the keepers of the balance in the revenue management systems.

All AI-powered tools are driven by rules and learn depending on the data fed to them by the user. They cannot foresee unprecedented circumstances and disasters although they can predict the revenue inflow. Price fluctuations and occupancy rates often waver under the conditions of political instability, fires, terrorist attacks, and natural disasters; making the role of a hotel manager gravely important. Tools cannot assist in unexpected situations, so it is up to the manager to contain the situation.

Such factors showcase the extreme need to have a revenue management team, along with a revenue manager to supervise it. The debate of who replaces who is nullified as the AI is co-dependent on human intelligence and vis-à-vis. For this to be true, only a proactive hotel manager is considered trustworthy—the critical judgment to select a hotel manager can only be carried out by human intelligence.

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