10 Minutes News for Hoteliers 10 Minutes News for Hoteliers
  • Top News
  • Posts
    • CSR and Sustainability
    • Events
    • Hotel Openings
    • Hotel Operations
    • Human Resources
    • Innovation
    • Market Trends
    • Marketing
    • Mergers & Acquisitions
    • Regulatory and Legal Affairs
    • Revenue Management
  • 🎙️ Podcast
  • 👉 Sign-up
  • 🌎 Languages
    • 🇫🇷 French
    • 🇩🇪 German
    • 🇮🇹 Italian
    • 🇪🇸 Spain
  • 📰 Columns
  • About us
10 Minutes News for Hoteliers 10 Minutes News for Hoteliers 10 Minutes News for Hoteliers
  • Top News
  • Posts
    • CSR and Sustainability
    • Events
    • Hotel Openings
    • Hotel Operations
    • Human Resources
    • Innovation
    • Market Trends
    • Marketing
    • Mergers & Acquisitions
    • Regulatory and Legal Affairs
    • Revenue Management
  • 🎙️ Podcast
  • 👉 Sign-up
  • 🌎 Languages
    • 🇫🇷 French
    • 🇩🇪 German
    • 🇮🇹 Italian
    • 🇪🇸 Spain
  • 📰 Columns
  • About us

The AI Revolution in Hotel Revenue Management: Why the Future Is Already Here

  • legarde
  • 26 August 2025
  • 3 minute read
Total
0
Shares
0
0
0

This article was written by Rategain. Click here to read the original article

image

By Mayank Rastogi, Senior Vice President & GM, RateGain

Revenue management, at its core, has always been about balance the delicate calibration of price, timing, and demand. For decades, this equilibrium was achieved by revenue managers hunched over spreadsheets, fueled by experience, instinct, and often, last-minute adjustments. But in an industry increasingly defined by data and disruption, those days are fading fast.

Today, a new paradigm is emerging. Artificial Intelligence (AI) is not replacing revenue managers it’s making them faster, sharper, and more strategic than ever before. And for hotels that want to thrive not just survive in a rapidly changing market, AI is no longer optional. It’s essential.

Table of Contents

From Gut to Grid: The Manual Era’s Hidden Costs

Anyone who’s been in the business long enough remembers the grind. Revenue managers spent up to 80% of their day buried in spreadsheets, manually tracking competitor rates, market shifts, and booking patterns. Every decision whether rate adjustments, promotions, or forecasting was made with incomplete data, often outdated by the time it reached the screen.

The costs of this approach weren’t always visible, but they were real. Hotels would routinely:

STARTUP STAGE: Wanderboat wants to be an AI-companion for travel planning
Trending
STARTUP STAGE: Wanderboat wants to be an AI-companion for travel planning

  • Underprice rooms during high-demand periods
  • Miss demand spikes tied to events or weather
  • Make critical pricing decisions with blind spots that cost them up to 10% of revenue

As per STR, hotels relying on manual pricing missed as much as 15% in revenue during peak periods. In a game of narrow margins and fierce competition, those losses hurt.

AI in Hospitality: Solving Complexity with Clarity

Fast forward to today. Distribution has exploded across OTAs, metasearch, and social commerce. Data pours in from every direction guests, partners, pricing engines, and booking behaviors.

From the State of Distribution 2025, it’s clear that the biggest barriers facing hotels today aren’t just cost they’re complexity:

  • 79% of mid-sized hotel chains struggle to track demand shifts effectively
  • Over 80% of hotels still spend up to two full workdays per week just to pull reports
  • 66% cite “difficulty tracking user intent” despite having access to vast data lakes

AI doesn’t just organize this chaos it turns it into opportunity.

Four Ways AI Is Rewriting the Playbook

1. Real-Time Dynamic Pricing
AI analyzes competitor pricing, occupancy, booking pace, and events then recalibrates rates instantly. No more waiting for daily syncs or revenue meetings.
Case in point: A hotel chain in New York used AI-powered pricing during a major marathon weekend and saw 18% higher RevPAR than competitors using traditional systems.

2. Demand Forecasting That Goes Beyond History
Legacy forecasting relied heavily on past data. AI combines historical trends with real-time indicators such as flight searches, weather, and local events to predict demand shifts before they happen.
A resort in Southeast Asia used this to reverse a seasonal slump. By adjusting to micro-booking patterns during monsoon season, they filled rooms and saw a 12% boost in occupancy.

3. Rate Behavior Intelligence: From Data to Direction
RateGain’s own Rate Behavior Intelligence (RBI) gives revenue teams the power to:

  • Track real-time pricing behavior across comp sets
  • See volatility heatmaps to identify pricing opportunities
  • Filter through signal vs. noise with smart visualizations

Instead of drowning in raw data, revenue managers get actionable insights at their fingertips.

4. From Firefighting to Foresight
AI doesn’t just automate tasks it reallocates time. Revenue teams using AI save up to 50% of their time, according to Gartner. This time is now invested in:

  • Strategic decision-making
  • Personalization strategies
  • Driving new revenue channels

AI Isn’t Replacing Revenue Managers It’s Elevating Them

There’s a lingering fear in some corners that AI might automate people out of the process. That couldn’t be further from the truth.
AI provides the canvas. Revenue managers paint the strategy.
The human touch intuition, creativity, empathy is what turns insights into action. Whether it’s crafting irresistible offers, launching segmented campaigns, or responding to sudden shifts in demand, the human edge remains irreplaceable.

The Road Ahead: Powered by AI, Led by People

The next wave of revenue management is not just digital it’s intelligent. AI is unlocking a level of foresight, speed, and precision that was unimaginable just a few years ago.
Hotels that embrace this shift are already reporting:

  • 20–30% increases in profitability (McKinsey)
  • Improved RevPAR performance
  • Stronger operational agility
  • Sharper strategic focus

This isn’t theory it’s already happening. The only question is whether your hotel is ready to act on it.
Because in a world where the market shifts by the hour, manual processes don’t just slow you down they hold you back.
Let’s not just catch up with the future. Let’s lead it

Please click here to access the full original article.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
You should like too
View Post
  • Innovation

OpenAI believes the traditional website is DEAD because of ChatGPT. And, I agree. In a recent interview, Greg Brockman said ChatGPT showed us how unnatural it is to use a static website for… | Kieran Flanagan | 159 comments

  • Automatic
  • 13 October 2025
View Post
  • Innovation

How to Develop AI Strategy for DMOs

  • Greg Oates
  • 13 October 2025
View Post
  • Innovation

The two faces of social commerce in hotel distribution

  • Automatic
  • 13 October 2025
View Post
  • Innovation

Deep Dive: AI in Hospitality Now (Destination AI 2025 Recap with Drew Potter & Josiah Mackenzie)

  • Josiah Mackenzie
  • 11 October 2025
View Post
  • Innovation

#hoteltech #hospitalitytechnology #hoteltechstack #rms #pms #crs #hotelsales | Benjamin Verot

  • Benjamin Verot
  • 11 October 2025
View Post
  • Innovation

RMS Announces Partnership With TRYBE

  • LODGING Staff
  • 10 October 2025
View Post
  • Innovation

BWH Hotels Shares Development Updates at Annual Convention

  • LODGING Staff
  • 10 October 2025
View Post
  • Innovation

Expedia Group B2B Supercharges Partner Growth With New AI-Powered Trip Planner and Multiple APIs

  • Automatic
  • 10 October 2025
Sponsored Posts
  • Winning the World Cup of Demand: A Revenue Management Playbook for Major Events – LodgIQ

    View Post
  • The Practical Guide to Hotel Automation

    View Post
  • 2025 SOCIETIES Quaterly 3

    View Post
Latest Posts
  • THE RITZ-CARLTON MALDIVES, FARI ISLANDS PRESENTS LIU BOLIN WITH MAISON RUINART
    • 13 October 2025
  • RHUBARB HOSPITALITY APPOINTED TO ELEVATE LEADING NOTTINGHAM VENUES
    • 13 October 2025
  • Casano’s Pizza Parlor brings a classic New Jersey feel to modern suburbia
    • 13 October 2025
  • Rosewood Hotel Group just launched a rebrand and their new website is actually worth looking at. New visual identity (green color scheme, refreshed logo) and a rebuilt site where you can book… | Nicolas Vorsteher
    • 13 October 2025
  • Rocco Forte Hotels names new general managers across Europe
    • 13 October 2025
Sponsors
  • Winning the World Cup of Demand: A Revenue Management Playbook for Major Events – LodgIQ
  • The Practical Guide to Hotel Automation
  • 2025 SOCIETIES Quaterly 3
Contact informations

contact@10minutes.news

Advertise with us
Contact Marjolaine to learn more: marjolaine@wearepragmatik.com
Press release
pr@10minutes.news
10 Minutes News for Hoteliers 10 Minutes News for Hoteliers
  • Top News
  • Posts
  • 🎙️ Podcast
  • 👉 Sign-up
  • 🌎 Languages
  • 📰 Columns
  • About us
Discover the best of international hotel news. Categorized, and sign-up to the newsletter

Input your search keywords and press Enter.