Automation without explanation is asking for trouble
When an AI tool fully “takes over” your revenue management, room prices often become hard to explain. Imagine the system suggests that market demand has increased by 15% and therefore automatically boosts your rates. Sounds logical, but what exactly is that market demand based on? Which data was used and why does it have such a strong impact on your price?
If that is not clear, a risk arises: rates are automatically pushed to all booking channels while you do not fully stand behind them. The result is uncertainty and the feeling that you are mainly relying on a black box.
The ideal balance: human and system
The best situation is one where you can build a well thought out pricing strategy and the system then performs the complex calculations for you. You set the direction, the system does the math. That is exactly where a good RMS comes into play, such as RevControl.
In RevControl, you build your own pricing strategy and feed the system with relevant market information. Think of questions such as:
- Which competitors are truly comparable in terms of product and service?
- How do your reviews compare to those of your competitors?
- Which market products do you want to include in your positioning?
In addition, your prices move along with the forecast, based on reliable historical and on the books data from your PMS. This allows you to steer based on insights you can trust.
Transparent rates, even when the market moves
After calculating prices, you want to understand how your rates are built up. That is essential. When the market changes, you move along, but in a way that fits your strategy and feels comfortable to you.
At the same time, the system keeps an eye on internal factors as the forecast adjusts accordingly. And thanks to automation, your rates are easily pushed to the channels where you are bookable. Even if your laptop stays closed over the weekend.
AI helps, as long as you stay in control
AI in revenue management can help everyone. The real danger lies in losing control over your pricing. Revenue management should never become guesswork, based on data you do not support or cannot explain.
That is the bridge we build with RevControl. You inform our system with your knowledge of the market, and we use smart algorithms to calculate how the forecast is likely to develop. Want to override a price anyway? You can easily do so in our user friendly rates calendar.
Do you have questions about AI, automation, or how to stay in control of your pricing? Then contact our Sales team via the button below.
