“In the second half of 2022, the hotel had a RevPAR increase of 78 percent!”
Revenue Management goes much further than just a right pricing strategy: it's about offering the right room, at the right price, to the right guest, at the right time, through the right channel.
Because revenue management covers so many facets, an optimal revenue management strategy requires input from many different sides. And this is where Otamiser and RevControl meet. Two companies that, when they work together, can achieve unprecedented results for hotels. Read on for a case study at Hotel Monarc in Ostend, on the Flemish coast.
Hotel Monarc is a four-star boutique hotel by the sea in Ostend. This renovated mansion from the 19th century has been transformed with great taste and an eye for detail into an exclusive boutique hotel with 21 rooms.
Since July 2022, they have been working with Otamiser to optimize their visibility on Booking.com, and with RevControl to ensure that they are always priced correctly. And the numbers don't lie: if we compare the second half of 2022 with H2 2021, we not only see the occupancy increase by 19%, but the ADR has also increased by 25%! An unprecedented success, of course, but a comparison with a "corona year". Also when we compare to 2020 (111% increase in RevPAR), so we look back to 2019. Hold on, compared to H2 2019, by implementing RevControl and Otamiser, this hotel has seen a 72% increase in the occupancy rate and 36% in ADR. This equates to an overwhelming 127% increase in RevPAR. That's more than doubled!
Of course, such figures should be compared to market data and rising inflation. In the second half of 2022, the hotel obtained a discounted RevPar increase of 78%. The cost of RevPar or the customer acquisition cost remained limited to an increase of 9%.
RevControl and Otamiser are extremely proud of this wonderful result and see it as confirmation that the collaboration is paying off for hotels.
But what does Otamiser actually do? You've probably heard of SEO, but of BEO? Otamiser is a Belgian start-up that specializes in the online presence of hoteliers on OTAs. First, they will draw up an online strategy. To then pour that strategy into a unique algorithm, the booking engine optimization algorithm (BEO). The BEO algorithm ensures that there is always a top position on the channels with the most traffic, to maximize visibility and bookings. Otamiser is therefore actually moving away from the traditional model of revenue management, in which price and occupancy determine the equation. In Otamisers innovative revenue management, visibility is central to the mix in order to perform optimal revenue management. Because who is seen, is booked. A recent study by Expedia Group also confirms this; 75% of all bookings are made from hotels within the first 7 search results. And let that be Otamisers speciality.
Do you want to know what Otamiser can do for you? Book an appointment here!
RevControl is the Dutch Revenue Management System. Using smart algorithms, they calculate price advice for the next 365 days every 15 minutes. This includes looking at historical data & booking pace to calculate an expected occupancy, but also events and of course prices from the competitors influence the price advice that RevControl gives. This way, you are always priced correctly and you get the optimal return.
In addition to price advice, RevControl also offers extensive reports that make the life of a Revenue Manager a lot easier. Hotels that have chosen to use RevControl always see a significant increase in their turnover.
Match Otamiser x Revcontrol
The BEO algorithm ensures that the demand within a geographical area is shifted to the integrated accommodation. Once the demand increases, the yielding options of Revcontrol start to work extra optimally, because then an optimal market price can be found. So when the demand increases, Revcontrol ensures a perfect price and Otamiser ensures a maximum number of bookings, then when the bookings come in, Revcontrol ensures a maximum increased price. And so both systems accelerate each other.