We'll see a positive impact on your performance – that’s for sure. But how much difference it will make financially is very difficult to answer. It depends on what you are doing at the moment. As a rule of thumb we would look for the following improvements:
- If you do not have a revenue manager but do some basic pricing for your rooms before:
15% increase in RevPAR on average
- If you are a revenue manager working with RoomPriceGenie as a tool to improve your consistency of performance:
7% increase in RevPAR on average
Obviously, these numbers are very variable dependent also on many other factors. We recently did a study of 9 hotels using us on Little Hotelier and Siteminder. Check out the results here.
And do you know what we found? Our results were even better than our rule-of-thumb:
Case Study showing the results from 9 hotels
How does it make you more revenue?
Seekom Revenue Management System works so well because we are making the most of your rooms. In particular, with our dynamic pricing solution, we will increase your average daily rate and your number of bookings at the same time.
We increase your average daily rate (ADR) ...
We know that you need to preserve the value for your hotel and don’t want to charge so much that you get bad reviews. For this reason, we work within the maximum and minimum prices you set. However, we would probably put your rooms at the maximum price more often than you would. Why? Because if you are going to fill up anyway on a particular night, we want it to be at the highest reasonable rate. We want to get your prices closest to the maximum on days that you are going to be full. In this way we increase the ADR.
... and your number of bookings!
But then we also want to increase bookings. We do this by reducing prices when you have a lot of rooms left to sell. We also know that empty rooms are a real shame. If we can help fill you up by putting you at a lower rate, we’ll try that.
The increase in ADR from charging more on busy days tends to be more than the decrease from filling up on quieter days. In fact, 8 out of 9 hotels in our case study have a higher ADR than last year.