The Client: The client is a 3 star hotel located in Secunderabad, Telangana. Established in 2001, the hotel is known for offering a blend of 3 star opulence and a timeless tradition of hospitality.
The Challenges: The Revnomix team identified the following challenges after being hired as Revenue Management Consultants:
1. Low Unqualified demand materialization with low OTA contribution. The hotel was not getting enough bookings from the leisure segment and non-corporate segments.
2. In spite of having a competitive product, the hotel’s ranking on OTA platform was not ideal, which in turn impacted visibility and search ranking. The hotel had bad content and review scores on OTA platforms. It also faced multiple level disarrayed setup and mapping issues, which meant that the desired pricing strategy was not accurately reflected.
3. The hotel’s competitors were better ranked on OTA platforms and thus were garnering more bookings.
4. The hotel was facing a major challenge of low occupancy overall.
The Strategy: The Revnomix team decided to face the challenges by focusing on the following areas
- Positioning – In order to resolve the multiple level disarrayed setup and mapping issues as well as to improve the hotel’s ranking on OTA platforms, the Revnomix team added new content on the OTA platforms. The content and images accurately represented the hotel’s offerings and would aid with the review scores and rankings on OTA platforms.
- Pricing – Pricing was flat and never reflected correctly due to Setup issues explained above. Pricing was changed as per the patterns derived out of historical data analysis with base DOW pattern and rate push as per the pickup and price sensitivity.
- Performance – Daily monitoring of performance was initiated to identify yielding gaps. Weekly pattern validations to keep eye on anticipated balance in price, Pickup, volume final revenue materialization.
- The Result: The positioning, pricing and performance review strategies implemented as part of the Revnomix Hotel Data Analytics services resulted in the improvement of Hotel ranking across OTAs and Meta searches. This improvement in hotel ranking resulted in increased volume and revenue. The number of rooms sold on basis of Day of Week pattern increased on average by 74% year on year. The Hotel’s positioning on the Price Volume Matrix improved and it earned much more balanced revenue by DOW. The growth in revenue by DOW increased on average by 55% compared to the previous year.