The Next Hotel Revenue Manager Generation in the AI Era
In today’s competitive hospitality industry, revenue management is the key to success. It’s a blend of strategic thinking and data analysis, and it’s constantly changing.
Traditionally, revenue managers relied on experience and manual tools, but now technology is revolutionizing the field. Artificial Intelligence (AI) is now transforming the field. This shift goes beyond simply using new technology. It marks a fundamental change in how professionals approach their work. AI in revenue management isn’t just about having new tools; It’s about a new way of thinking that merges human creativity with the incredible power of modern AI.
But the success of a hotel hinges on its Revenue Manager in order to maximize profits, these strategic leaders orchestrate collaboration across departments, ensuring everyone works towards the same goal: increased revenue and profitability, this is why hotels rely heavily on Revenue Managers.
What or Who is a Hotel Revenue Manager?
A revenue manager as title was first used by the airline industry, then revenue management expertise was introduced in the hotel industry by Marriott in the late 1980s. Since then, the position did not stop evolving to adapt to growing expectations. However, the revenue manager has evolved from first being known as a reservation manager and then a yield manager. The position changed its title over time to be called a revenue manager or revenue strategist. The role of the revenue manager is evolving. They are being asked to take on more responsibility for optimizing profit, while at the same time new data and technology are making basic decisions more difficult. This shift is creating a need for revenue managers who can think strategically and lead to solve complex problems.
The multitude of technologies available to customers and businesses and the increase of online distribution channels do not limit the revenue manager’s role anymore to just opening and closing availability and rates. The evolution from fix to dynamic pricing strategies, from tactical to strategic expertise, coupled with customer behavior changes, urged revenue managers to develop multi-functional skills.
Which Revenue Manager Generation Are You?
As a revenue manager, have you asked yourself who am I? which generation am I? what is the future showing for me, in order to identify yourself? Let us talk about the various generations as below:
The First Generation of Revenue Managers were those individuals who were most often members of an on-property reservations team. Their role may have been one of a reservation supervisor or manager. When the Internet emerged and electronic reservations became far more mainstream, these pioneers formed the early cohort of revenue managers. They were largely self-taught, still expected to run reservations, in many cases ill-equipped to handle the tasks of the intricate and complicated world of online distribution.
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