"Bionic" Revenue Management

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Today, Fernando Vives, Chief Commercial Officer at NH Hotel Group, discusses the evolution of revenue management from the earliest days to the opportunity today - something he calls "Bionic Revenue Management” - which combines the best of human intuition with the power of artificial intelligence. Read on to learn how this approach is revolutionizing hospitality pricing strategies, significantly enhancing customer satisfaction, and creating a more personalized guest experience.

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• The future of travel

• Jason Bass’ new podcast

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FEATURE STORY

"Bionic" Revenue Management

with Fernando Vives, Chief Commercial Officer at NH Hotel Group

Today, Fernando Vives, Chief Commercial Officer at NH Hotel Group, walks us through the evolution of revenue management and the exciting opportunities it presents today.

"Bionic Revenue Management"

Fernando started our conversation by reflecting on the evolution of revenue management, highlighting how the discipline has transformed over the years. He recalled his early days as a revenue manager in 2001, when revenue management was a relatively unknown concept.

Back then, revenue managers relied on basic tools like Excel and had limited access to benchmark data. However, with the advancement of technology, revenue management has undergone a significant shift.

Fernando introduced the term "bionic revenue management," which refers to the combination of human and machine intelligence. He emphasized the impact of technology on revenue management, citing the abundance of data available to revenue managers today. With access to trends, demand behavior, and distribution channels, revenue management is poised for a major transformation.

Fernando believes technology will be crucial in driving this change, enabling revenue managers to make more informed decisions and optimize their strategies.

Are Revenue Management and Guest Satisfaction Mutually Exclusive?

I was curious how to balance these two aspects, as we need to achieve both to succeed in hospitality.

To further answer this question, Fernando talked about the concept of “hyper-personalization,” which is made possible by combining human and artificial intelligence. He explained that technology advancements allow hotels to offer attribute-based selling, where guests can customize their experience based on their preferences. By asking guests what they want and tailoring their offerings accordingly, hotels can enhance customer satisfaction while still optimizing revenue.

Fernando provided examples of attribute-based selling at work, where guests can choose specific room features such as views, proximity to elevators, or in-room amenities. This approach allows hotels to showcase the offerings that guests want - which of course, ends up in higher customer satisfaction.

Hyper-personalization is not new, but the technology now enables hotels to deliver on this promise.

The Future of Revenue Management

Looking ahead, Fernando predicts a future where revenue management will continue to evolve and significantly impact various disciplines within the hospitality industry.

Fernando emphasized the importance of staying updated with technology advancements and their potential impact on revenue management, sales, distribution, marketing, e-commerce, and business intelligence. He encourages revenue managers to invest time daily in understanding market trends and technological advancements. (This was a practical takeaway we can all use with our teams today!)

He believes combining human intelligence and technology will be the key to gaining a competitive advantage in revenue management moving forward. As technology continues to advance, hospitality providers in general and revenue managers specifically must stay informed and adapt their processes to leverage the power of data and technology for a more personalized guest experience.

Listen to our full conversation here now

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