Distribución y Revenue Management

📌 Over 800,000 tourism program spots for seniors are causing discontent among pensioners due to uneven distribution; with 886,269 spots and four million accredited individuals, an imbalance arises. After about 80% of trips are booked in initial sales days, savvy pensioners or those with online booking assistance snap up remaining spots. Some manage to take up to five trips per season, the maximum allowed by Social Tourism (Ávoris), while others miss out. Each user is limited to 30 reservation processes per season, including bookings, waitlists, modifications, and cancellations.

💰 Michael O’Leary, CEO of Ryanair, known for his controversial statements, recently campaigned fiercely against the Green Party in Ireland. The Greens, who had 12 seats in the Irish parliament, proposed a cap on flights at Dublin Airport, affecting O'Leary's business. Following the elections on Saturday, the Green Party lost all 12 seats, becoming extraparliamentary. O'Leary's criticism predated their defeat, and despite the possibility of the Greens gaining a seat during the ongoing count, the likelihood seemed improbable as of Sunday night.

🏖️; Spain consolidates as the favorite destination for the December bridge, with a 3% increase in searches compared to 2023. Madrid and Barcelona rank in the global top 10 most searched cities, at fourth and seventh place respectively, while Dubai, London, and Paris lead the list. Nationally, Madrid, Sevilla, and Granada are top for Spanish travelers, with Vigo's searches surging by 21% due to its Christmas lights. Torrejón de Ardoz sees a 157% search increase, and Las Palmas de Gran Canaria's searches grow by 23% for solo travelers. Booking.com's Pilar Crespo notes that 66% of Spaniards are willing to spend more on wellness getaways, with 46% preferring short stays and 41% opting for national destinations.

🏩 On November 22, the CEOE's Digital Society Commission, coordinated by DigitalES, unveiled the "Casos de Uso de la IA Generativa" guide, highlighting success stories in various economic sectors, including a smart dashboard by Biontrend for the tourism sector. Presented by José Alberto González-Ruiz, the guide covers applications such as code generation systems, virtual assistants, and scientific research tools. Biontrend's dashboard enables hotels to track tourism activity, offering predictive analysis for strategic decision-making, with features like real-time data from PMS systems, competitive comparisons, and year-ahead forecasts.

🛫 On December 3rd, the new ses.Hospedajes system, required for traveler reservation registration under Real Decreto 933/2021, crashed on its debut. Interior Ministry won't penalize initial failures. At the FlyAndalucía Summit in Seville, Vueling, Ryanair, easyJet, Jet2, and Iberia Express discussed connectivity hurdles in Spain, emphasizing the promotion of sustainable aviation fuels (SAF) with government support. Westmont Hospitality and Grupo Lar announced a strategic alliance to develop 12 hotels with 2,500 rooms over six years, investing €350 million initially.

🖥 In the hotel industry, AI has evolved from data analysis to decision-making and contextual tasks. Revenue managers may become obsolete within five years as AI and automation take over, particularly in smaller, less complex hotels. However, experts argue that human revenue managers will still be crucial for complex tasks in medium and large hotels, focusing more on strategic and technical roles. AI is expected to work as a "copilot," handling routine tasks and allowing humans to focus on strategy. While AI can manage technical aspects, humans remain essential for their intuition and empathy, configuring systems, and translating decisions into organization-wide strategies.

💸 Revenue managers are known for their data analysis skills and adjusting prices based on market demand and behavior. With AI's ability to perform these analyses at unprecedented speed and precision, algorithms are now optimizing rates, adjusting inventories, and personalizing offers automatically. This shift necessitates revenue managers to evolve from tactical to strategic roles, focusing on profitability with a holistic approach. Those unable to adapt to this strategic, consumer-centric mindset risk being displaced by automation. The future of revenue management is not an end but a revolution for those embracing new technological tools.

📈 The evolution of revenue management in the AI era requires understanding the algorithms behind RMS (Revenue Management Systems) recommendations. Teams must include data scientists and analysts, fluent in concepts like linear and logistic regression, decision trees, random forests, gradient boosting, and K-Nearest Neighbors (K-NN) to build robust predictive models and make strategic decisions based on data-driven stories shown on dashboards. Data science specialization is now essential, not optional, for strong strategies in modern revenue management.

💾 In recent years, the hotel sector has seen a transformation with the adoption of AI-driven revenue management solutions. These AI tools offer a range of opportunities for more efficient and competitive solutions, already in use by hotel chains and independent hotels. AI is not a threat but an ally, enhancing strategy precision and efficiency for revenue maximization. The human factor remains crucial in complementing AI by analyzing vast data sets and defining needs, distribution mix, segmentation optimization, and detailed analysis for focused results and improved financial outcomes.

💻 SiteMinder integrates artificial intelligence (AI) into onboarding, guiding users step by step and enabling quick adaptation without deep tool knowledge. An AI chatbot in the channel manager automates responses to common queries, improving user experience and optimizing hotel resources. AI won't replace Revenue Managers, especially in Spain, where demand has risen post-pandemic. SiteMinder believes in enhancing human talent with AI for successful Revenue Management in the hotel industry.