The Rise of AI in Revenue Management
Revenue management involves two key components: the strategic brain that crafts long-term commercial strategies and the operational tasks that execute daily tactical work. AI now unequivocally handles the operational side better than any human. Modern Revenue Management Systems (RMS) are the new standard, utilizing powerful algorithms for tasks such as rate updates and monitoring pick-up. The real question is who should manage the strategy guiding the tool: an in-house team or an outsourced expert?
The In-House Argument: Owning the Strategy
Keeping the strategic function in-house ensures a leader who lives your brand and aligns the AI’s execution with your hotel’s vision. An in-house strategist provides crucial human oversight and owns the “why” behind your rates. Finding and retaining such multi-talented leaders proves costly, and even the best can develop tunnel vision that misses broader market shifts.
The Outsource Argument: Renting the Brain
An outsourcing strategy provides immediate access to high-level expertise, particularly for hotels that lack a clear commercial direction. Consultants bring broad industry experience to build your plan from the ground up, giving your team and RMS the direction they need. The primary risk is a disconnect from your hotel’s unique culture, which can potentially result in a technically sound but soulless strategy.
Marketing and Sales: The Heart and Voice of the Hotel
Marketing and sales represent the heart and voice of the hotel, creating emotional connections with guests and customers. AI supercharges this function, enabling hyper-personalized engagement through tailored ads and intelligent lead scoring. The question remains: who should control this powerful engine?
The In-House Argument: Guardians of the Brand
Keeping marketing and sales in-house makes your team the ultimate brand guardians. They understand your culture and values, ensuring an authentic voice. Close collaboration with other departments becomes seamless. The main challenge is the complexity and cost of maintaining expertise across the vast digital landscape.
The Outsource Argument: Accessing the Specialists
Outsourcing provides you with a team of specialists in disciplines such as SEO and SEM. Agencies bring sophisticated tools and broad perspectives, allowing for efficient execution of complex campaigns. A potential danger lies in a generic, “one-size-fits-all” approach that fails to capture your hotel’s unique essence, creating a disconnect between the digital campaign and the guest experience.
The Unseen Foundation: Hotel Business Intelligence
The entire in-house versus outsource debate rests on a more fundamental truth: without a clear view of your own business data, any decision is a guess. AI tools are only as innovative as the data they receive. A robust Hotel Business Intelligence (BI) tool acts as your “single source of truth,” unifying data from your PMS, RMS, and other platforms. Building a custom BI solution is a massive undertaking; partnering with an expert who specializes in hotel data management and business intelligence is a far more effective path.
A hotel-owned BI system also protects your institutional knowledge. When you outsource a function, your data often resides in the third party’s system. If you switch suppliers, that knowledge walks out the door. Owning your BI platform ensures that your data and the intelligence it generates remain yours, permanently.
Breaking Down the Silos
Regardless of your team structure, silos will undermine your efforts. AI cannot fix a communication problem; it only amplifies it. An opportunity identified by an RMS is lost if marketing and sales are not aware. You need to intentionally structure for collaboration.
The “One Roof” Model: The All-In-House Commercial Team
The ideal structure for maximizing AI’s potential is a unified commercial team led by a single leader, such as a Chief Commercial Officer. Shared goals and KPIs dismantle the “us vs. them” mentality, creating fertile ground for an AI-driven strategy. A massive cultural shift and a significant leadership investment are the main challenges.
The Hybrid “Core & Specialist” Model: A Pragmatic Compromise
A more realistic approach is the hybrid model, keeping a core strategic team in-house while outsourcing technical tasks. For example, your team sets the strategy, and an agency executes the ad buys. A strong in-house leader must manage these external partners to ensure they function as extensions of your team, not as new silos.
Your Team, Your Data, Your Future
The conversation about AI in hospitality has focused too much on technology. The real challenge is building the right team. The decision to keep or outsource functions is a strategic reflection of your hotel’s identity and goals.
First, prioritize your data. Own it, protect it, and make it the single source of truth. Second, prioritize collaboration above all else. The most powerful AI is useless in a siloed organization. AI is not here to replace the human element of hospitality, but to empower it. Hotels that succeed will invest not only in technology but also in building a unified, collaborative, and data-savvy team capable of effectively utilizing it.
