In the digital age we live in, automation and artificial intelligence are revolutionizing many sectors, including revenue management.
RMS have proven to be powerful tools for optimizing the revenue of accommodation facilities, but it is important to emphasize that human intervention remains essential for making informed and strategic decisions. In this article, we will explore how human intellect must integrate with the use of revenue management software to achieve exceptional results.
Technology as support: revenue management software leverages complex algorithms and machine learning to analyze vast amounts of data, forecast future demand, identify optimal prices, and guide the application of more effective pricing strategies.
However, the crucial role of human intellect cannot and should not be sidelined. Despite the remarkable capabilities of revenue management software, it is essential to recognize that human intervention brings an irreplaceable added value.
The revenue manager has the ability to understand and interpret the context, considering complex factors beyond data processing.
Why? Let’s look at it in detail:
- Defining strategic goals: business goals and revenue management strategies go far beyond mere profit maximization. Human intervention is needed to understand the hotel’s long-term goals, such as managing customer relationships, building brand loyalty, and balancing profitability with customer satisfaction.
- Context analysis: revenue management software relies on historical data and mathematical models for forecasting. However, human intellect can consider external factors that influence demand, such as special events, market trends, competitive policies, and socio-cultural aspects. This contextual understanding helps optimize pricing and resource allocation decisions.
- Flexibility and adaptability: human intervention is crucial for adapting and customizing revenue management strategies in response to unforeseen situations or signals not predicted by algorithmic models. Human experience and intuition can detect anomalies, identify opportunities, and make timely adjustments to the automated system.
- Ethical and responsible approach: artificial intelligence, while powerful, is not immune to biases or errors. Human intervention is essential for monitoring and mitigating potential negative impacts, such as discrimination or irrational decisions. Humans can make ethical judgments and social considerations that a machine might not be able to do.
The use of revenue management software can bring significant advantages to hotels, but human intervention remains a crucial element for making informed and strategic decisions.
The combination of technology and human intellect creates a winning partnership, where technology supports and amplifies human capabilities without fully replacing them. By leveraging both resources to the fullest, hotels can achieve exceptional results in revenue management, gaining a lasting competitive advantage.
Elena Alleruzzo
Marketing & Communication Manager MyForecast RMS