Is it possible that Artificial Intelligence can replace human intelligence in revenue management and pricing analysis? More important to understand here is what it will replace, than a clear “Yes” or “No” to this question.
We are sure you must have read about the increasing reach of AI at least a few times recently, in print or digital. Artificial Intelligence is taking over in every business. The time for machine learning has indeed arrived. In almost every industry, machines are taking over. This is irrespective of the fact whether; they will replace or empower revenue management and pricing intelligence.
In the travel industry, AI is capable of finding price gaps and demand pattern. In the current time of tough competition, all travel companies, airlines, car rental, and cruises, etc. are looking beyond past trends for price, demand and yield management. Progressive Airlines are already using AI for competitive marketing intelligence, target new customers, build its brand value and drive revenue.
Industry professionals are using predictive analytics and interpretations using machine learning. Artificial Intelligence (AI) is one of the biggest trends in the travel industry and other related fields like flight maintenance, airport management, cruise, car rental companies and the hotel industry. Industry players are innovating with their pricing strategy using big data and AI.
As we head towards next decade 2020, AI and machine learning will be an even major driver of transformation. However, deficient knowledge of disruptive forces in the business environment is another crucial barrier to correct forecasting related price, demand, and even human resource requirement.
While some feel that, the community will witness “The Next Golden Era, as it will radically improve how businesses interact with their customers when they are information assisted. However, what will follow as an outcome of this is getting their staff educated on what AI is all about and how it will enhance their work experience.
Another cause of worry for most in the industry is – will it reduce jobs and workforce requirement? Yes, it will. However, for the betterment of the industry. Like in the past also, with the introduction of new disruptive technology many earlier tools, processes, and jobs became redundant. Similarly, AI and AI-based tools will replace jobs just as digital cameras replaced films. While some jobs will disappear, other new jobs will also be created.
This is an exciting time to be functioning in the travel business world with so many developments around. In future, Revenue Management and Pricing Intelligence jobs will be the most incredibly transformed by AI and Big Data technologies.
Artificial Intelligence coupled with Big Data analytics will permit the automation of many routine tasks, but of course not all of them. Hence, we should only leverage the power of man-machine where human involvement is not necessary. We all will agree, that the travel industry thrives by the personalization and personal touch that you can offer to your guest and this is where humans are required that most. Additionally, there are some logic and understanding that is only possible by a real human brain and not any artificial intelligence.
Technology had already begun to share the burden of revenue management analysis and pricing analysis in most repetitive tasks. This was a much-expected change of the explosive increase in available data that we are experiencing from everywhere. Not more than a decade ago, analysts had to work on just a few megabytes of data and they deemed it enough to make decisions.
However, things have changed a lot now; your competitors also have access to piles of data. A few hours spent earlier to process small data have now turned into days or weeks. Time spent to this tune will certainly influence your daily schedule; hence, it becomes important to succumb some control of the mundane tasks to the machines.
Trusting AI is the best thing to do now. As more data is an enabler to better and more detailed decisions. Moreover, the methods for data analysis are different and more precise. More data means more insights. However, the good part is your workload does not multiply in the same fashion, it rather becomes much easier and data backed.
Therefore, it is inevitable that you leverage the power of AI and Big Data analytics to make better decisions and more revenue.
The need of the hour is to make a choice here; either you can use the same old methods with the piles of data that you have today you let your competitors take the lead. Or else, adopt AI-empowered methods for data analysis and stay ahead of your competition.
While the amount of available data and the ability to process it with AI is growing exponentially, human brain-capacity is limited. It is not possible for any human brain to process this size of data and of course, you have a limitation on the team size. Moreover, you cannot change the pressure you have to face at work. Hence, let us review our initial question “Will AI replace or empower revenue management and pricing analysts?” Yes, certainly, this is very much required need.
To summarize, the extent of this change and level of replacement will solely depend on our needs and adaptability to AI. No matter how much you want to resist this change, still some facets of the current revenue management and pricing will indeed be automated sooner than later, however, some others might take a very long time to be automated. As of now, these traits remain more proficient if controlled by humans.
One very important factor to be kept in consideration is when we utilize the power of AI tools; the new terrains to improve the revenue management and pricing are limited only by human resourcefulness, experience, and wisdom. AI standalone is not a ticket to more revenue. Hence, that is why we need to plan a correct mix of human and artificial brains. Both have to work as a team to make it work!