For the last 15 years, Revenue Managers have suffered from what I call “Operational Stockholm Syndrome.” You have fallen in love with your captors: the spreadsheets, the manual rate updates, and the endless data entry.
NB: This is an article from Demand Calendar
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Why? Because that drudgery feels like tangible work. It is safe. It is quantifiable. When you spend eight hours wrestling with Excel, you go home feeling like you earned your paycheck.
The fear isn’t just about being replaced by a machine; it is a fear of the void. If AI replaces manual forecasting and pricing updates, what remains? If you strip away the “Human Calculator” tasks, does the Revenue Manager still have a job?
Here is the hard truth I need you to hear today: If your value proposition is that you are good at math, you are already obsolete. AI detects patterns faster, forecasts more accurately, and calculates price elasticity better than you ever will.
But here is the good news: The industry doesn’t need better calculators. It needs Commercial Architects. If you are wondering what to do with your recovered hours, here are five concrete actions to ensure you don’t just survive the AI revolution, but lead it.
1. Obsess Over Profit, Not Just Revenue (NetRevPAR)
AI engines are incredible at maximizing top-line revenue (RevPAR). They are programmed to fill the room at the highest probability price. However, most algorithms are blind to the Customer Acquisition Cost (CAC).
This isn’t necessarily a failure of the AI; it is a failure of infrastructure. Most hotels simply do not have this data themselves, so the AI cannot understand CAC. If the hotel cannot structure the data regarding commissions and channel costs, the AI cannot “learn” it. The AI may prioritize a $200 OTA booking over a $180 direct booking. It doesn’t “know” that the $200 booking carries an 18% commission because that data link is missing.
Your Action: Stop being the “Rate Gatekeeper” and become the Profit Guardian. Since the AI cannot see what isn’t there, you must fill the gap. Use your new free time to audit your revenue sources and work with Marketing to adjust the mix. The AI chases the volume; you protect the margin.
