With the rise in technology, the revenue management system has evolved to reach a level where every component of it is automated. AI-powered revenue management software and machine learning have taken the hotel industry by storm.
With AI automatically generating more than 100 million decisions across tens of thousands of properties each day, more and more hotel businesses have replaced their hands-on, rules-based pricing decision approach of legacy systems with AI-powered revenue management systems.
Hotels, small and big that are using AI-powered revenue management software have seen significant growth in their revenue numbers.
Why there is a need to embrace AI in hotel revenue management system?
“It is time that concepts like Artificial Intelligence and machine learning also enter the field of marketing and pricing, and not just directly relating to enhancing superior guest experience, says Siddharth Goenka, founder, Aiosell Technologies.”
AI and machine learning have entered the traditional hospitality landscape with an assurance of driving revenue, enhancing hotel reputation, and taking the customer experience to the next level – something which the legacy systems could not do efficiently.
Hotel legacy systems are usually complex and technically-outdated. The software performance is low, because of which, the data processing is delayed, leading to conflicting information on inventories. The result is – low occupancy and significant revenue loss. However, an Al-based hotel revenue management system like Aiosell, can significantly change the situation.
AI’s ability to learn about customers using its data analytics platform helps hotels create better marketing strategies and determine the most beneficial room rate.
Legacy System vs AI-Powered Revenue Management System
Revenue management is a critical function in the hospitality industry. Although AI is regarded as the emerging technology trend, many hotels have already experienced its incredible benefits and significant impact on their business’ momentum.
We can conclude that AI can greatly increase revenue management systems’ efficiency, outperforming the legacy systems with traits like real-time data processing, personalization, and automation.
About the Author
Karan Iyer is an end-to-end digital marketer and blogger at Aiosell who inherently understands the hotel industry with his hospitality background. Karan knows how to convert the pain points and challenges of the hotel industry into business opportunities, and that’s what he writes about for his readers. He also shares industry trends, insights and news to help his readers stay up-to-date.