Machine learning

The Need for Machine learning

The Need for Machine learning, Big data, and Artificial Intelligence in Your Hotel Business 

Technology has greatly influenced how people plan their travel. And to meet the expectations of guests, businesses are integrating their hotel revenue management strategies with incredible innovations such as AI, machine learning, and big data. And most of the businesses are more than happy to invest in these technologies because the results are tremendous. Let’s understand how.

Market Segmentation – AI and machine learning help you analyze huge chunks of data to distribute your hotel market into segments. And this is an essential step since it allows you to alter your revenue generation strategy to optimize the bookings. There are 3 major categories that we segment the hotel market in –

  1. Demand Segmentation: This segment is focused on demand. For example, if the demand for your hotel rooms is at a peak in the winter season, then you may adjust the room rates accordingly. Or when the demand is low, you can offer your potential guests discounts to attract bookings. 
  2. Channel Segmentation: This helps you identify which OTA channel is driving in the most sales. This way you can optimize the use of that OTA and cut down the unnecessary costs that do not have a significant return on investment. 
  3. Guest Segmentation: Segregating your guests in categories such as business travelers, huge groups, solo travelers, etc. helps you target them separately with exciting deals and offers. You can give them exactly what they are looking for at the right time to make sure that enquiries lead to bookings. 
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Predictive Analysis – With the use of big data along with AI to analyze that data, hoteliers can adopt need-specific solutions and grow their revenue directly. AI captures, understands and predicts future demand smartly. It analyzes the travelers’ choices, seasonal bookings, holidays, local events, and current trends. The data analytics further helps in understanding the booking patterns. And with such huge chunks of data, the reliable, AI-driven forecast system predicts the future demand and allows you to be better prepared to align your capabilities with the demand.

AI-Driven Data Reporting – One of the biggest advantages of AI and machine learning is effective hotel revenue management. Once the demand is predicted, the AI-driven software optimizes the room rates to attract bookings. It also makes sure that the rooms are booked through the right channel because AI-driven revenue management is all about optimization and driving in sales. Huge hotel chains such as Accor Hotels and Marriott International use automated revenue management systems to define the optimal rate in real-time. With effective pricing management, you can ensure that the occupancy of your hotel rooms is optimized and revenue continues to grow even when the demand is low and market competitive. 

Reputation Management – Big Data can improve the reputation of your hotel dramatically. Let’s understand how. 

Since Big Data allows you to store huge volumes of data about your customers, you can make their stay in your hotel better than ever. For example, if a guest asked for something specific during their last stay, you can make sure you have already made the arrangements next time they visit. 

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Moreover, with automated check-ins and other AI-backed software, you can make sure that you offer your guests nothing but the best. This way your hotel reviews will improve multifold which will be good for your brand and your sales. 


AI, machine learning and big data are no more just emerging technologies. Leading chains and growing hotel businesses are increasingly adopting these solutions because the results are magical. Analyze the requirement of these technologies, talk to an expert, and understand how you can go about leveraging them to grow your hotel business.


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