Cases of Success of Revenue Management in period of Covid

Hotel Wilson de Barcelona

This last year has been very hard, and thanks to brave and committed people such as Jordi Llansac, General Manager of the Wilson Hotel and Alex Ferrando, its Commercial Director who trusted us; we were able to move the hotel forward together.

The entire revenue strategy is unique and exclusive to us with our own mathematical algorithms, which we have been polishing for the last 15 years, to predict consumer behavior, based on demand projections and these same related to a given hotel. The relationship with each hotel is different, since each one has different segmentation, origin of customers and different products.

The management has been intense and coordinated between the hotel staff and our team.

We have applied all the appropriate visibility and positioning actions and we have implemented new ones, with the aim of taking the largest market share.

With this constant uncertainty, the analyses, decisions and all the work has been done on a daily and rigorous basis, so that the result was the best possible. Mainly through slight price drops with respect to the competition only and exclusively on the days that corresponded, all the actions have borne fruit; thanks to the fact that we work with one of the most elastic products to demand, positioning and visibility.

The distribution mix has been very complete since we have addressed all the channels maximizing visibility, positioning and reducing risks taking most of the market share. This is the strategy we have employed in these months.

In fact, in the first months of this year we have already had more average price than the 4-star competition of our District of Sant Gervasi and the occupation we have more than doubled and everything has been possible due to the long-term demand projection and the daily updates in turn.

With our exclusive and unique demand projection system we can plan in medium and long term, anticipate competition and obtain more occupancy with better average price, placing the rev par well above. Although Sant Gervasi in itself is one of the areas with less rev par of the city, in the first months of this year it is almost 3 times higher than the average of the 4 stars of the area and more than double that of the 4 stars of the city.

Exemple of the 3 hotels in Baix Empordà

When there is demand we raise the price well above the competition significantly in advance and have been able to do this by analyzing the supply and demand in the long, medium and short term and relating it to each hotel.

We could see that for the existing supply at that time there was going to be an excess of demand, which we saw before the competitors, allowing them to book up beforehand, putting us in a position to be last to sell at a much higher price. To do this we track daily demand / supply, which we project into the future and slow down the pick up so that every day we sell higher and in the end we are the last to book up. I have been applying and polishing this strategy for almost 20 years. When nobody tried to do something similar we managed to double and triple the results of the market and now we continue to improve it in an important way, since we have been improving the algorithms of demand / supply related to a given product.

These analyses are not so simple because there are accelerations or slowdowns in demand. It is therefore necessary to understand the consumer’s behaviour as t is tremendously important to catch a slowdown or acceleration in order to act before anyone else. As in the years preceding Covid, we will surely have constant curves again and in fact, this Easter has been an example of this, obtaining very good results.

In this Easter week with Covid we have made record average price and Rev Par, well above the best results of 2019 since with our demand forecast we saw that it was going to be much higher than the little supply that had allowed us to significantly raise the average price.