Artificial intelligence and the human factor: revenue management in the hotel industry still needs experts

HotelPartner Revenue Management also leverages human expertise to understand market conditions, target audiences and a hotel’s specific needs.

The company sees AI as an essential tool for working with hoteliers. While decisions are based on available data, it has been difficult for machines to take into account factors such as the environment, weather or local events. “Soft factors, such as perceived market trends or psychological barriers to overbooking and pricing, cannot be captured by machines. For HotelPartner Revenue Management, it is therefore essential that human experts enrich the data sets with additional information in order to make clear predictions.

“Since its beginnings in the US airline industry, computers have been used as a revenue management tool. By analysing demographic data, weather conditions or events, AI can make more accurate predictions about future demand. This allows hotels, in particular, to manage their resources more effectively and maximise revenue. Segmentation and personalisation of offers also allow different customer groups to be targeted with tailor-made price offers”.

Leander Eyer, Co-Founder and CTO at HotelPartner Revenue Management

“Another benefit of AI in revenue management is the automation of processes, which saves time and resources and allows employees to focus on strategic decisions and, above all, on interacting with guests. Due to the acute shortage of skilled labour in the industry, the digitalisation of work processes is becoming increasingly important. At HotelPartner, it is also in our DNA to continuously develop our own technology to support this process. That is why, from the very beginning, we have focused on combining human expertise with innovative technology. Over the years, this has resulted in the TET synergy, which consists of qualified teams (T), proven expertise (E) and the use of modern technology (T).

Rainer M. Willa, CEO at HotelPartner Revenue Management

The introduction of AI technologies continues to revolutionise revenue management, helping businesses from hostels, guesthouses and independent hotels to large hotel chains to increase revenue, improve profitability and provide added value to their guests through dynamic pricing and personalised offers. As a result, the role of the revenue manager has evolved significantly. By automating and streamlining processes, revenue managers now have more time to focus on strategic aspects of the business and optimise day-to-day operations in a more efficient and effective way. This shift is opening up a wide range of new opportunities for the hospitality industry, allowing companies to gain a significant competitive advantage in the marketplace. Sustainable revenue management also rests on three pillars: strong expertise and understanding of the system, the courage to adopt new strategies and approaches, and mutual trust.

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