We’ve been keeping an eye on artificial intelligence (AI) for some years now. But, it’s evolved from a mere trend to a force that’s reshaping revenue management.
As revealed in our 2025 hospitality trends report, AI is rated 4.5 out of 5 in importance by global hoteliers, with nearly half (47.2%) seeing it as the biggest challenge facing the industry.
But challenges also bring opportunities.
In this article, we’ll explore why AI has become essential for revenue managers, including takeaways from industry experts and practical steps to integrate AI into your strategy this year.
Why AI matters more than ever
AI’s ability to analyze vast amounts of data in real time is unlocking insights that were previously unattainable. It enables hotels to move beyond guesswork, using actionable findings to make smarter, faster decisions that align with both market conditions and customer expectations.
Jordan Hollander, Co-Founder at Hotel Tech Report, shared: “AI is transforming how we forecast, price, and strategize. Hotels that embrace AI-driven insights won’t only stay competitive but will lead the charge in adapting to the rapidly evolving hospitality landscape.”
Global hoteliers identified these key AI-powered features driving change:
- Predictive forecasting and demand analytics: 86.1% leverage AI to predict market trends and demand patterns.
- Dynamic pricing optimization: 69.4% of revenue managers rely on AI for real-time pricing adjustments based on demand and competition.
- Competitive intelligence insights: 58.3% of hoteliers use AI to monitor and adapt to competitor pricing strategies.
Generative AI and the next frontier
Unlike traditional AI, which analyzes existing data for problem-solving or predictions, generative AI creates new content and insights. As Hollander predicts, “We’re at a pivotal moment. Generative AI will enable personalized pricing and unlock entirely new booking channels.”
This innovation could revolutionize how offers are tailored to individual travelers and create new ways for you to engage with guests. Imagine AI-driven bots that customize rates based on a traveler’s preferences or search engines that reshape how bookings are made.
Empowering small and independent properties
In the past, advanced revenue management strategies were mostly accessible for large hotel chains. However, AI is leveling the playing field, making powerful tools accessible to smaller properties.
Independent hotels now have the opportunity to implement advanced revenue management strategies such as personalized pricing, predictive analytics, and demand forecasting, without the need for vast resources. This is groundbreaking, not just for increasing efficiency, but also for staying competitive.
AI is an advisor, not a replacement
While AI is undoubtedly powerful, its role in 2025 isn’t to replace but to enhance human expertise.
Darrell Stark, VP Sales, Revenue & Distribution Strategy at Noble House Hotels & Resorts highlights, “AI enhances personalization and streamlines decisions, redefining revenue management. Its potential is undeniable, but its role will be evolutionary rather than revolutionary.”
Michael McNames, Director of Revenue Management at Sandman Hotels et Sutton Place Hotel Group agrees, adding, “AI provides efficiencies, but trust in its recommendations is built gradually. It’s here to elevate human expertise, not replace it.”
What you can do today
So, how can you start leveraging AI in your revenue management processes today? Here are some actionable steps:
- Automate repetitive tasks: Use AI for data analysis and inventory management.
- Integrate AI into your pricing decisions: Leverage predictive analytics to make more accurate and responsive pricing decisions.
- Personalize the guest experience: Use AI-powered platforms to analyze customer data and unlock new levels of personalization.
- Prioritize governance: Develop clear strategies to ensure AI-driven initiatives align with business goals and avoid misuse of its potential.
Staying ahead of the curve
Wilhelm K. Weber, Chief Strategy & Digital Officer at Grand Metropolitan Hotels sums it up perfectly:
“The cost of inaction is far greater than the cost of innovation. Early adopters always come out ahead.”
Embracing AI today is the key to staying competitive this year. By adopting these technologies early and implementing them thoughtfully, you’ll be positioning your brand not just to keep up but to lead the charge.
2025 hospitality trends report
These insights are drawn from our 2025 hospitality trends report, which analyzes factors set to impact the industry this year. The report features perspectives from global revenue management professionals and leading industry voices, including executives from Hotel Tech Report, Sandos Hotels & Resorts, CP Hospitality, Noble House Hotels & Resorts, the Sandman Hotels et Sutton Place Hotel Group, and Grand Metropolitan Hotels.
From embracing AI to redefining revenue metrics, it provides a roadmap for turning today’s challenges into tomorrow’s successes. With real-world applications and forward-thinking strategies, including insights from leading hotels, casinos, and resorts, this report delivers actionable tools to help revenue professionals stay ahead of the competition and thrive in 2025.
