AI will not replace human Revenue Leaders anytime soon
The Future of Revenue Managers in the Age of AI Co-pilots: Evolution, Revolution or Goodbye Revenue Managers?
Revenue Optimization — Viewpoint by Fabian Bartnick
I do not anticipate the complete demise of human Revenue strategists any time soon. The day to day activities of a revenue manager may change and many entry-level positions will be eliminated. How this trend of not creating a pipeline of new Revenue Leaders is going to impact the industry 10-20 years from now, is material for another discussion.
Even the fastest race-horse or Formula 1 car needs a jockey/ driver. The Revenue AI will still need human input to configure the system, plug in the server and provide input no computer can possess. The Revenue Manager is also the person translating the decisions of the RMS/ AI for the other stakeholders in the hotel should they have questions.
AI is not at a point to make decisions based on empathy or feelings. Output is stricly based on logic. Customers of hotels are not other computers, but human beings and the emotional connection with customers is still very much relevant in high-end hotels and resorts. The old saying that people will not remember what you said, but how you made them feel
remains true - and humans will have the advantage in this area for a considerable time. After all, there was a reason why Captain Kirk and not Mister Spock was in charge of the "original" Enterprise (in the 1970s).
The role of a Revenue Manager is often viewed as mostly changing rates, creating Excel reports and presentations for meetings, updating inventory, partnering with OTAs and maintaining the PMS and interface.
With the advances of AI, the Revenue Manager will be freed from many of the manual aspects of the job. At the same time, the required skill set will tilt towards more of a technical background in addition to a solid business expertise. The focus and time commitment will shift towards strategic distribution in different market segments. We will also see the convergence of Revenue Management, Sales and Marketing into a Commercial Strategy function.