Turnaround - New Opening in Alicante with Low Occupancy
To illustrate how Hotelient help hoteliers, We would like to share an example on how we took a hotel that had launched at the height of the financial crisis from 2% occupancy to 54% in the space of 3 years while increasing RevPar by 18€.
During our 5 years there, our initiatives grew revenue from €72k to €3.8M by implementing the following simple strategies:
1. Intense period of contracting (Golf Agents/Leisure Agents/MICE/OTA ́s)
2. Optimisation of Segments to improve Direct Business levels & RevPar
3. Implement Up-selling & Cross Selling strategy to improve incremental revenues
4. Design & introduce a Digital Marketing plan to improve online visibility & direct revenues.
5. Implement strategy to improve guest data capture
6. Implemented proactive review management and review marketing
7. Implemented responsive revenue management to out compete the competitor hotels
8. Cost Restructuring & Optimisation
We were able to achieve spectacular growth in occupancy, RevPar and overall revenue simultaneously whilst not being overly dependent on any particular channel.
Whilst OTA ́s can deliver bookings on demand, they come at a price. That’s why we decided to invest time in improving the hotels online presence and distribution technology. It is important to regularly review online technology as it changes fast. For example, changing a booking engine that was best of breed 2 years prior, yielded a 300% increase in direct online bookings year on year.