It is time that concepts like Artificial Intelligence and machine learning also enter the field of marketing and pricing, and not just directly relating to enhancing
Hotel bookings around the world have changed much faster than what the industry had anticipated. Players in the sector have recently witnessed a lot of automation and innovation around guest experience and augmented reality.
Hotels around the globe see almost more than 70
Technology adoption is needed in the hospitality industry for several reasons. The ubiquitous availability of internet and
Hotel rooms are a perishable inventory (like airline seats and movie tickets), which need to be priced appropriately because if they go unsold, they will never be recovered back. The ease of internet on smartphones has made two primary changes in the hotel booking patterns: Customers are increasingly buying hotel rooms online, which reduces the role of traditional travel agents and offline channels. Moreover, the average booking window (the period between booking and check-in) is
Hence, the need to use AI
Historically, hotels would base their pricing decisions only based on past data and analysis;
Moreover, several external factors like
As per the market reports by 2021, the global smart hospitality market will increase to US$ 18.1 billion at a CAGR of 25.8 per cent. This will be driven by hotel automation platforms, which can generate a global market of US$ 4.3 billion by 2021, at
Drivers of change
In terms of sales and marketing, AI and automation have been the biggest drivers of change when it comes to dynamic pricing and automated revenue management. Most hotels are seeing a major percentage of their bookings come from smartphone and internet users, and the usage of integrated pricing and distribution systems that use AI and ML to optimise rates has become even more important to maximise revenues and minimise efforts.
Prior to the inception of this automation, hotel rates were often decided by hotel and revenue managers and manually entered into the extranets of online travel agencies or channel managers, which was time-bound and often a slow and inefficient process. Rates could only be changed a few times a day, depending on the time and availability of revenue managers and only for a few days, depending on
There is clearly a need for advanced automated revenue management and dynamic pricing systems in the hotel industry. The marketing and revenue management teams of hotels who are typically responsible for managing online marketing can now be made more productive, or in some cases be completely replaced by pricing robots thereby increasing efficiency for the hotels.
There are few hotels