Automation in Hotel Revenue Management

In this day and age of technology, many hotels are already leveraging Automation in Hotel Revenue Management. However, not all are convinced (yet) with this kind of automation system due to various reasons. But before we delve into that, let us first know what Revenue Management is about so that we can fully understand how Automation in Hotel Revenue Management can greatly benefit hoteliers.

Revenue Management is mostly about predictions and maximizing the hotel’s opportunity for revenue and profits. In order to do that, the revenue manager must compile and analyze data to make pricing decisions. In short, Revenue Management revolves around selling the right product to the right customer at the right time and for the right price. It sounds simple but it is not easy to accomplish. This is where Automation in Hotel Revenue Management will come in. In this blog, we will help you understand how it works and how Automation in Hotel Revenue Management can help your hotel.

What’s inside this blog?

Automation in Hotel Revenue Management: Myth vs Truth

Many Revenue professionals think they don’t need automation since they have ample experience in the fieldAutomation does not actually replace the professional’s experience, but instead combines it with the big data analysis to come up with better solutions. 
Automated RMS can’t handle unprecedented timesAutomation through an RMS leverages the power of real-time data when predicting future business. Having accurate forecasts will allow you to better plan ahead and share realistic outlooks with stakeholders.
No control over pricingYou always have full control on what price limits and ranges that can be set by the automation systems.
You can step in to adjust all settings as needed and make manual changes at any time. 

Advantages of Automation in Hotel Revenue Management

Before the Automation in Hotel Revenue Management, Revenue Managers did all the work manually from collecting, entering, and analyzing so much data. There’s no denying, manual processes are a bit more tedious and time-consuming than with automated systems. The good thing about Automation in Hotel Revenue Management is that it speeds up the work of RMs, helping them make fast and complex decisions through the help of a reliable Revenue Management Solutions (RMS) like ZEN eManager Express. 

Automation will also help you to ensure that your room prices are up to date and competitive all the time, preventing any revenue loss due to rates not updated to the market changes. 

Areas Where You’ll Benefit From Automation

1. Business Intelligence

While you can gather business intelligence through manually collecting data, doing daily in-depth competitor and market analysis are draggy and time-consuming. Some data can be hard to find as well through manual research. And usually, the information you get is outdated by the time you use it to make decisions. That is why deciding based on historical data and past insights is now unreliable. 

But when you leverage automation, not only you save a lot of valuable time but gathering data of competitors, market trend evolution, and anomalies in the demand pattern with an automated system enables you to make more informed decisions. 

2. Forecasting

In this unprecedented time, demand can change in an instant, for example, due to government regulations on the lockdowns, sudden surge in demands due to some events, etc. And when the demand changes, you must go through the whole process manually—from ensuring your pricing keeps pace with the demand to updating your forecasts regularly to reflect market changes—every time, and that costs you so much valuable time that you could be spending on other more important tasks.

Automation in Hotel Revenue Management solves this problem. RMS leverages the power of real-time data when predicting future business. Having accurate forecasts will allow you to better plan ahead and share realistic outlooks with stakeholders. 

3. Pricing

Manual pricing updates based on on-the-books (OTB) and historical data are fine but doing so, you are opening a door for opportunity loss for additional revenues if you miss trends or upcoming events. 

Must-read: Understanding The Power of Data: How Data-Driven Pricing Helps Hoteliers Recover Stronger

By automating your rate updates, the odds will be in your favor. The key is an RMS like ZEN eManager Express that gathers real-time and forward-looking data to analyze price elasticity. ZEN eManager Express helps you make price decisions, and forecast accurately during the recovery phase through its AI-backed intelligent pricing, real-time automated updates, and in-depth analytics for performance review. 

4. Data Security and Privacy

Saving your data in excel can be prone to data loss due to possible hardware malfunctions or when your laptop is lost. With the data being stored in the cloud, it is secured as you are the only one who can access it, and RMSs are equipped with state-of-the-art cyber security to ensure that it is safe on the cloud.

The COVID-19 pandemic has hastened the technology adoption in the hotel industry as hoteliers are trying to maximize revenue and reduce costs. So, if you postpone the digital transformation of your hotels, you will be left behind by your competitors because more and more hotels including small and independent ones have already had access to this technology.

Do more with less and let ZEN eManager Express do the heavy lifting for you to access all the data you need in just a few clicks. Book your free appointment now at

Frequently Asked Questions About Automation in Hotel Revenue Management

Q: How automation can help me as a hotel owner?
A: Automation can help you as hotel owners in gathering business intelligence to help you make informed decisions, updating rates automatically based on the business intelligence to ensure that your hotels have the most competitive rates, forecasting especially in this ever-changing conditions, and securing your data and privacy by storing your data in the cloud with state-of-the-art cyber security technologies.

Q: Am I going to let go of my control over pricing if I use automation?
A: No. You as hotel owners still have full control over the pricing as automation will adhere to the limits that you have set up in the system. For example, if you want the prices not to be below a certain threshold, you can do that. So, there is no worry about selling the prices too low or too high as you have full authority over it.

Q: Is my data safe if I rely on automation?
A: At the moment, the advancement of cybersecurity has already been very mature, and the data stored in the cloud is guaranteed to be safe. It is actually more secure as we can guarantee you are the only one who can access it, as opposed to physical storage which can be lost or stolen. Furthermore, it is more robust as well as the data is not going to be lost if hardware malfunctions happen on your side.

Q: What are the advantages of using automation in hotel revenue management?
A: Automation will help to ensure that your room prices are up to date and competitive all the time, preventing any revenue loss due to rates not updated to the market changes. Secondly, it also saves costs and time as automation will help to reduce the workload needed by humans in collecting data, crunching numbers, and coming up with decisions. These resources can then be allocated to different important aspects of your hotels.

Q: Are hotels already using automation?
A: Definitely! Big hotels have been using automation for years. And due to the democratization of technology, these automation systems have already been available to small independent hotels too, in recent years. You might not realize it, but a 15-room hotel near your hotel suddenly has better pricing techniques and undercut your hotel due to their adoption of automation technology. Therefore, it is recommended to adopt this technology as fast as possible before your competitors do it in order to be ahead of the competition.

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