Hotel revenue management plays an important role in the hospitality industry. It can help to boost the revenue of the hotels. Thus, hotel businesses put extra care into the underlying software that is required by revenue management. As time goes by, many hospitality industries start to adopt AI (Artificial Intelligence) and Data Science-based methods in their Revenue Management systems. This system is designed especially for the hotel industry.

The AI-based method that was presented in the hotel industry includes building and preparing fact-based models which utilized the information that it gets to distinguish the input items and continue to predict the output value. In general, there are two types of AI usage which include unsupervised learning and supervised learning. The prior one required a significant data set with designated output values so that it can assemble the expectations concerning the latest information. The current one uses insignificant information to come across with association between different properties.

A supervised learning method is used to label input and output data. This method has been taken into consideration in predicting best-fit valuing, characterized yield strategies accordingly, and determining requests. In contrast, the unsupervised learning method manages the unlabelled data to find the inherent structure. This method can be utilized in different research-related work such as the division of records between demographic data and client preference.

Real-time data processing, accuracy, integrity, and autonomy are the new arrangement that required to maintain in facing any problems during the legacy of the revenue management system.

It has been proved that Artificial Intelligence (AI)-powered revenue management systems have become much easier in data management. It is important that for a hotel business to know about the data of the travelers as they need these data to analyze their customer behavior and expect to give the best experience to their customers. AI plays an important role in this so that they can easily get more customers and generate more profits.

By and by, the challenges that are faced in gathering and investigating the information will be solved and reorganized by innovation that is sufficient for the business to make key decisions based on the customer’s characteristics, needs, and behavior.

With the advancement of AI, it helps the travelers to turn into a smart shopper. Travelers can look and inquiry about various choices based on their requirements or needs and able to get the proper responses. Generally, the hotels that are involved in this must give a kind response to the users and be able to offer their visitors suitable packages, rooms, amenities, and various kinds of services.

AI-powered revenue management system plays an important role in any hospitality industry and there are quite a lot of duties that needed to be performed. This system must collaborate with other departments of the hotel before it started especially in the marketing and sales department which are responsible to lead the business forward. There are many advantages to adopt this system in the hotel business especially in distribution channel management, forecasting, marketing, pricing, and stock management.

In a revenue management system, the distribution channel must be firmly attached to the customer and provide services in a specific time frame. The system will pick a channel and set the costs for the intended interest group depend on the item type.

Besides that, this system also allowed to forecast the future income opportunities. However, it depends on the data and segmentation in the revenue management. The data acquired must be authentic on occupancy, past income, the room price, and any current information on customer activity.

Moreover, this system can help in any promoting activity to increase sales volume. It makes use of the devices that can allow a property to sell all its stock by getting new guests and keeping the flow steady. This also includes other marketing activities such as loyalty programs, promotions, and discounts.

Furthermore, revenue management may bring an advantage in pricing strategy. It depends on the demand in the market and the preferable price that customers are willing to spend on the specific type of property. The system will automatically analyze the market, pricing offered by competitors, and services that they are offering before it set the value. The pricing costs will be optimized by different evaluating techniques and incorporated in estimating methodologies such as dynamic pricing, contract agreement procedures, and corporate pricing.

In a revenue management system, if there is no room involved, it means that the hotel generates losses. They must ensure that all the rooms are occupied in order to generate profit. Thus, AI-powered revenue management is created to achieve these objectives in the business. It includes key performance indicator(KPI) tracking, yield management, current and historical data analysis, competitor analysis, market analysis, and revenue forecasting.

Nowadays, the difficulty that is faced by the hotel is to answer the quick response to their client’s questions. AI has given an extra alternative to solve the issue and enable handling the tasks such as data analysis and it will adjust the client interconnections. AI-powered hotel revenue management system has allowed the hotel to operate its business smoothly such as perform online bookings, customize services, and allowing the hotel to give progressive responses to the clients.