How to simplify processes through automation and artificial intelligenceTyler Morse, chairman and CEO of MCR Development recently advised attendees at the Asian American Hotel Owners Association annual trade show and conference to
“Increase your rates; do it with confidence. … Stop wasting money … Buy smart technology.”
“This is a very simple business … don’t get swooned by all the complexities of the business… Room rates are where all of the profits are.” he said.This is true for most hotels as their room revenue is the primary revenue stream. At Atomize we could not agree more with this sentiment. We entered the revenue management space with a clear vision to simplify pricing through artificial intelligence (AI) and automation, even for the most complex hotel operations with a greater share of non-room revenues. The task of price setting is normally the responsibility of skilled revenue managers, some of the most highly paid resources in a hotel operation. Yet for most revenue managers the process of revenue management has evolved far beyond the original objective of setting the right price, for the right guest and the right time creating an overwhelming and complex workload that is affecting their ability to perform optimally and causing tremendous anxiety. Quietly, but urgently, revenue managers are increasingly asking themselves “Which of my duties are mandatory, which are optional”; “Which are essential, which are discretionary?”; “Which are tactical, which are strategic?”. In this context, it is prudent to remember the words of General George S. Patton, “Good tactics can save even the worst strategy. Bad tactics will destroy even the best strategy.” Relieving revenue managers from the burden of mundane and repetitive tasks, including tactical pricing, will go a long way to save time, increase revenues, and improve profits. An effective way to prevent bad pricing tactics is through intelligent automation.