Since 2011, the owners of the Condal and Call hotels have placed their trust in Yield Revenue to manage their revenue management. Since then, and we are going into the fifth year, the hotel's revenue has increased more than 50 percent continuously year after year.
In the first meeting with the property, they made us aware of their discontent and the problems they had with credits, defaults and very low net fees (either due to high commissions or promotions that were not necessary).
So yieldRevenue's goals were:
1 – Identify improvements in the management of the methodology and philosophy of revenue management in hotels.
2 – Analysis and valuation of sales and distribution channels.
3 – Daily evaluation of rates and offers.
A first exhaustive analysis was made of all the variables that can affect the hotel's revenue results, historical data, future sales, demand from the area per day, contracts and conditions with online agencies, etc.
In addition, at YieldRevenue we have our own unique management system in which we have managed to relate the maximum possible sale price with the demand projections of the area and city, as well as an exhaustive analysis of the historical behavior of both pas and recent years year of the hotel and the city. We have an exclusive system with which we project future prices in relation to demand and the analysis of the behaviour of the hotel and the city, all with our own formulas.
With these evaluation methods we conclude that:
1 – The prices of the rooms did not correspond to the potential that the hotel had, taking into account all the variables.
2 – The supplements of triple and single rooms had room for improvement.
3 – We analyzed the conversion of sales of triple rooms and improved it substantially, with an improvement in the average price.
4 – The channels, distribution and commissions of the agencies were not the most adequate.
5 – The ratio of credit sales to direct payment sales was at a very high level.
6 – There was no day-to-day demand forecast
The sales strategy had to be done in the short, medium and long term. In this way, gradual and constant changes would be achieved until reaching an optimal in revenue management.
In the short term, it was necessary to redefine the rates of the entire calendar according to history, future demand of the area and the city, etc.; eliminate duplicate offers and simplify the rest; and give availability in all agencies to have a maximum distribution,
In the medium term, the objective was to improve the positioning in the search engines, redesign the hotel website, increase sales on the web through the implementation of an engine with greater conversion and eliminate the agencies with work on credit.
In the long term, the plan was to improve the score in agencies, in close collaboration with the hotel, increase stays per reservation, customer loyalty and increase sales through their website.
In addition to the implementation of a rigorous and exhaustive work that, among other things, consists of collecting the information including historical and future data, and reordering it so that the best possible analysis can be made. This data is entered into our system, which suggests prices that are analyzed and edited if necessary for each
day. It is a system of daily and meticulous analysis work for all types of rooms to have the best selling potential.
Taking all this into account, both hotels have had a constant growth during the years in which they have worked with the integral services of YieldRevenue. With these measures, the Condal hotel managed to have a growth from September 2011 to August 2012 of its revenues. The condal hotel's revenue continues to grow steadily and 2015 with a 19 percent growth in RevPAR.
For its part, the Call hotel achieved a growth of 14 percent the following year. The annual revenue growth it achieved in 2015 will be 29 percent over 2014.
Finally, since 2013, the annual growth has been mainly due to increases in average price, because starting from the first year of management we took the two hotels to annual occupancies of 95-97 percent.