Hotel revenue management is the practice of selling the hotel room at the right price, to the right customer, at the right time, through the right channel to maximize profitability for the hotel.
In today's world, most hotel customers book hotel rooms through online channels such as Booking.com, Expedia, Hotels.com, etc, without prior planning, very close to the days of travel. With high competition and oversupply of hotel rooms, hotels now need to react to these changing demand patterns in very little time and adjust prices 24x7 to maximize business. Hence there is a higher need to use automation and Al for revenue management to maximize revenues, ADRs and occupancy for a hotel.
Unfortunately, most hotels still use old inefficient methods for pricing & revenue management, done by revenue managers who adjust rates manually few times a day. Most existing Revenue Management Systems make rate recommendations based on past data and do not take into account current & future dynamics, thus requiring Revenue Managers to evaluate these recommendations and make pricing decisions manually. This often results in higher costs and lower profits for the hotels, because the process is inefficient and there is enough money left on the table due to slow reaction times.
Hence, there is strong need for an Automated & Al based Revenue Management system that uses dynamic pricing to make pricing decisions that can help hotel maximize revenues, ADRs, and occupancy.