For revenue managers, the future of forecasting is defined by a few top trends that are driving major transformations. This evolution requires a balancing act that relies on a combination of data, artificial intelligence (AI) and machine learning (ML) to boost precision when it comes to setting rates, segmenting audiences, and targeting campaigns.
With the recent data-driven challenges due to COVID, it’s important to take a holistic view of the trends shaping the future of forecasting, including the impact of the pandemic, so revenue managers can be better positioned to thrive in the future.
#1: The Evolution of AI and ML With the ability to autonomously improve itself, artificial intelligence (AI) is exponentially more impactful than machine learning (ML) on its own. As we enter the “Age of AI,” revenue management systems will become more intelligent as the decade unfolds. That growing intelligence will accelerate its ability to deliver quality outputs faster.
#2: Rapid Forecasting The importance of AI and ML has risen with a situation that’s constantly evolving. To stay on top of changes, hotels must adjust to shifting demand and constantly calibrate systems to identify, and capitalize on trends.
Indicators that influence your rapid forecasting include: changing flight schedules that can impact market-level demand, blended demand at both the property and market level as travel regulations change, cancellations or changes in reservations due to government regulations in travel, and channel source trends that can help account for shifting sources of business.
READ THE FULL ARTICLE BY KEVIN DUNCAN IN THE 2022 SPRING EDITION OF GAMING & LEISURE MAGAZINE.