Abstract
ABSTRACTThe implementation of revenue management in the hospitality industry has significantly increased in the past years. It started in the rooms departments and is slowly evolving to be further used for conference and event spaces, as well as food and beverage outlets. At the same time, advancements in technology allow new products such as automated revenue management systems to develop. On one hand, the opportunities are to make use of big data and shift to a science-based revenue management. On the other hand, risks include the increased vulnerability such as through hacking or data leaks. The current debate is often dominated by the fear of possible job loss and a lack of trust in the new technology. Nonetheless, the industry is slowly shifting towards automation and will have to adapt over time.
Highlights
Introduction on revenue managementRevenue management was initially invented by the airline industry about 60 years ago and has been adapted by the hospitality industry over the past several decades (Anderson & Xie, 2010)
The technological developments of the last decade have had a tremendous influence on the hospitality industry, the travel behaviour of guests, and how hotels operate
After revenue management was introduced to the industry, this new form of pricing has been adapted by most hotels
Summary
Revenue management was initially invented by the airline industry about 60 years ago and has been adapted by the hospitality industry over the past several decades (Anderson & Xie, 2010). It was defined as selling the right product, to the right customer, at the right time, for the right price (Yeoman & McMahon-Beattie, 2017). With the rapid development of new revenue management software, it is questionable to what extent the revenue department as we know it today is future proof. Current developments in the hotel industry include the automation and centralisation of revenue management that replaces the role of on-property revenue managers (Kimes, 2011). This, in turn, leaves the question: will it be possible to fully automatise and replace humans or is the future a close collaboration between both?
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