“Same Time Last Year” Is Dead: Rethink Revenue Management

Imagine driving a car while only looking in the rearview mirror. That’s how many revenue managers are still operating today – relying on historical data without fully accounting for the dynamic, real-time conditions shaping demand. According to Philip Kuchelmeister, hospitality tech innovator and founder of Hotellistat, one of our Expert Partners, that mindset needs to change. As he puts it, “Same time last year is dead.”

Historically, revenue management systems (RMS) have depended heavily on past performance, comparing dates year-over-year to forecast and price inventory. While this can yield some insights, it often misses the bigger picture. What if the Champions League Final is in town this year but wasn’t last year? What if travel restrictions suddenly ease or a major concert is announced? These influencing factors make “same date” comparisons unreliable and increasingly irrelevant.

That’s where AI-driven tools like ARIS (Automated Revenue Intelligence System) come into play. Instead of relying solely on internal data and simplistic metrics like minimum rate comparisons, ARIS pulls from thousands of data points – including real-time event data, search volume, customer sentiment, cancellation trends, and even distance from venues. This level of granular context allows hotels to react proactively, not retroactively.

Kuchelmeister likens traditional revenue management to analyzing the “tip of the iceberg” – segments, rate codes, and basic forecasting. But under the surface lies a vast and largely untapped world of data. AI can process and interpret this raw information without human bias, delivering nuanced pricing recommendations based on actual market behavior, not just assumptions.

ARIS, for example, builds a tailored model for each property. Whether it’s a hostel or a luxury resort, each gets a custom AI engine that continuously learns and evolves week after week. Once set up – a process that takes under an hour – it automatically updates and fine-tunes its models based on how your market and business evolve. The system provides demand forecasts, rate recommendations, and performance insights, all calibrated to your specific goals. Want to prioritize occupancy over rate? ARIS can do that. Want to hold for higher ADR? It can optimize for that too.

More importantly, this approach closes the gap between strategic ambition and operational execution. With legacy RMS tools, revenue managers were often limited by internal data and manual processing. But AI unlocks a new level of agility – adjusting to market conditions, spotting opportunities, and reducing the risk of missed revenue.

And for those still clinging to old methods, the cost isn’t just in time. It’s in lost bookings, suboptimal pricing, and an inability to adapt quickly. As Kuchelmeister notes, “Even a bad mirror is better than no mirror – but it’s time to look through the windshield.”

In today’s hyper-competitive landscape, leveraging advanced technology isn’t a luxury – it’s a necessity. Hotels that adopt AI-powered revenue systems like ARIS are positioning themselves to not just keep up, but lead.

Ready to stop driving blind? It’s time to let the data – and the AI – show you the road ahead.