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Best Practice - Success Stories.
One of our success stories
We were commissioned by the owners to improve the profitability of a privately owned 4-star hotel with 49 rooms in a highly competitive and challenging destination in southern Germany.
Our approach
- Analysis of market potential of the rooms department.
- Careful decrease of the group business, which was causing displacement for individual segments.
- Implementation of strategic pricing.
- Training of owners and staff in professional category selling in the reservations department.
- Implementation of continuous Yield and Revenue Management.
Results
- Increase of Net Rooms Revenue in the first year by
plus € 100.000. - Increase of Average Daily Rate (ADR) since the start of consulting contract from € 71,58 to € 109,52 (plus 53,0%).
- Increase of total Rooms Revenue within five years of consulting period by € 730.000 net of V.A.T..
- Increase of Revenue per available room (RevPAR)since consulting contract begun by plus 77,6%.
- Due to a significantly higher cash flow extensive investment in upgrading of property was successfully carried out without having to use external financial resources.
Increase since Consulting started
Occupancy (OCC)
16.2%
Average Room Rate (ADR)
53%
Revenue per available room (RevPAR)
78%