Revenue Management Case Studies
Solutions that provide clarity in a complex world.
Summer 2020 was a tough season for the hospitality industry, to say the least. Smith Travel Research (STR) reported Average Daily Rate (ADR) down 25.9% and Revenue per Available Room (RevPAR) down 47.5% through mid-October.
The Avance Hotel experienced a complete shutdown in the middle of its prime season and reopened during a record-breaking high temperature summer season. |
ImplementationRevPAR Lobby's understood it was going to be a tough Summer season across all markets. Thus, our goal was to simply have a better summer than others within each market. To do so we implemented a growth plan rather than a recovery plan. For instance, we allocated efforts in marketing campaigns that would generate impressions across all channels, with the ultimate goal of expanding the hotel's market share.
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ResultsOverall, revenues were 25% greater compared to the same time period last year. Third party channel page views were 166% above fair market share, opaque/package bookings up 198% over fair market share, and promotional bookings 250% above fair market share. Avance Hotel also captured revenue share 155% greater than its fair market share.
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In 2010 the Movie Colony Hotel faced a number of challenges. First, the overall industry was trying to recover from the great economic recession. The Palm Springs market suffered from reduced market demand and noticeable decline in ADR. Secondly, the hotel was falling behind the market's recovery trend. They were experiencing decreasing gross revenue performance year-over-year, and stayed afloat by simply and manually following the static rate patterns set by their competitive set.
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ImplementationRevPAR Lobby’s specific boutique operation understanding and system adaptation, were their strongest arguments to selecting our Revenue Management Solutions. RevPAR Lobby quickly realigned and established new market segments, and implemented real-time rate analysis.
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ResultsOur top-line revenues increased by over 30%. Thus within a year of implementing RevPAR Lobby's Revenue Management System, the Movie Colony Hotel was able to invest and restore its famed glamour.
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The 4 Season at Desert Breezes Resort maintained high occupancy during peak seasons and remained virtually empty over the off season. They realized the solution to their occupancy dilemma was to implement a traditional hotel revenue management program. However, their inventory was not fit for a standard revenue management system because they operated as a fixed-fixed timeshare property. RevPAR Lobby Revenue Management team had a solution.
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ImplementationRevPAR Lobby implemented its pricing yield system maximizing their rental inventory over peak seasons. Strategic marketing campaigns were launched, capturing noticeable market share over their off season months.
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ResultsRental revenues were up 300%+ year-over-year. 4 Seasons at Desert Breezes quickly became an awarded Top Property for numerous online travel agencies' (OTA).
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