Last month we sold all of our rooms at Grand Capital Hotel. Not bad. To be honest I am even impressed by these kind of numbers myself. But how did our team of hotel strategy experts maximize revenue and profit for these? We have put together 4 revenue management and marketing case studies, highlighting our best practices and proven techniques.
1. PROFILE OF THE HOTEL:
Grand Capital Hotel property with very high occupancy (94%-95% every year.) The hotel is located in the business district called of Alagbaka, Akure. It is a real hub in the city. The property has a cool and functional design.
2. THE REVENUE MANAGEMENT CHALLENGES:
Grand Capital Hotel has been running this property since 2017. After a year of successful performance the revenue management challenge of this hotel case study is to keep growing the generated revenue. And with occupancies always in the mid 90%, ARR increase is the only way to go … Ah, yeah, and of course to replace OTA business with Direct bookings.
3. REVENUE MANAGEMENT STRATEGIES PROPOSED AND IMPLEMENTED BY GRAND CAPITAL HOTEL:
- Better inventory management:
- Revising room-type supplements
- Overbooking room-types strategically in low demand periods
- Restrictions on OTAs on MLOS and room categories on high demand periods
- Inventory micro-management to optimize conversion on stay through availability
- Group quotations:
- Increasing conversion levels for low / mid demand periods with competitive offers
- Driving ARR for high demand periods
- Website growth techniques:
- Trademark protection
- Meta-search with a strategic selective approach, favoring high value stays over blanket volume bidding
- Conversion stimulation via persuasive pop-ups
- Subscription based discount and promotional codes prominently positioned on website
- Post stay emailing to gain loyalty and improve reputation score
- Focus on Best Price Guarantee on website and in Booking funnel
- Fixed corporate rates to used to drive demand on low season
- Yield opportunities, driving ADR on weekends and special events with a longer lead time
- Deeper and better analysis of segmentation and booking pace, micro managing yielding for a 13 month window
Only to mention but a few.