Small and large hotels that use AI-powered revenue management software have achieved considerable revenue increases.
Fremont, CA:With the advancement of technology, the revenue management system has progressed to the point where all of its components are automated. Machine learning and AI-powered revenue management tools have taken the hotel industry by storm. More and more hotel businesses are replacing their hands-on, rules-based price decision approach with AI-powered revenue management solutions, with AI generating more than 100 million decisions across tens of thousands of properties each day.
What is the need for AI in the hotel revenue management system?
AI and machine learning have invaded the traditional hospitality scene with the promise of increasing revenue, improving hotel reputation, and improving customer experience - all of which older technologies were unable to do effectively. The legacy systems at hotels are typically complex and technologically obsolete. Because of the low software speed, data processing is delayed, resulting in contradicting inventory information. As a result, there is a low level of occupancy and a large loss of revenue. An Al-based hotel revenue management system, on the other hand, can drastically alter the scenario. The ability of AI's data analytics platform to learn about customers aids hotels in developing better marketing tactics and determining the best room rate.
In the hospitality industry, revenue management is a crucial job. Despite the fact that AI is still considered an emerging technology trend, several hotels have already reaped the benefits and had a major influence on their bottom line. It can be stated that AI may significantly improve the efficiency of revenue management systems, exceeding legacy systems with features such as real-time data processing, personalization, and automation.