The Client: Hotel Orritel West is a boutique hotel located in Andheri (West), Mumbai. The hotel has 26 well-furnished rooms and offers all the facilities that are sought by business and leisure guests. The hotel is a popular choice for hosting parties, corporate events, training sessions and shoots.
The Challenges: Some of the challenges faced by the hotel were:
- -The hotel was paying high commission rates (between 20% to 40%) to domestic Online Travel Agencies (OTAs).
- -The hotel was generating very less bookings from foreign OTAs which charge commission rates between 15% – 18%.
- -The high commission prices resulted in implement pricing strategies that had an adverse impact on the Average Daily Rate (ADR), Length of Stay (LOS), Booking Pace and revenue volume.
The Strategy: Upon identifying the key challenges faced by the Client, the Revnomix team implemented the following strategy:
- Our team re-evaluated the presence of Hotel Orritel West and decided to restrict the domestic OTAs that were charging a higher commission rate but were not generating proportional revenue.
- Our team identified foreign OTAs that catered to the market segment the Client was targeting and established a strong presence on these OTAs to reach out to a wider market.
- We studied the impact of the existing pricing strategy on ADR, LOS, booking pace, occupancy growth and overall revenue volume. This historical data analysis led to the implementation of a pricing strategy that was in line with the pricing of the Client’s competitors.
- Daily Strategic Pricing for rolling 90 days was implemented and Pick up was monitored for further price revision.
- Consistent work on positioning to enhance hotel visibility on OTAs.
- Regular engagement between the hotel and the Revnomix Team to share insights and results.
The Result: Repositioning has helped hotel with Strategic Pricing & Higher Visibility on OTAs, which in turn has led to a steady growth in ADR & LOS. The booking pace improved as a result of our concentrated efforts. The occupancy rate grew by 505% on a year on year basis. Room revenue grew on a year on year basis by 459%.