Case Study: From tired and forgotten to ‘wow’ in just 12 months

Property

Location: Regional Tasmania

Type of Accommodation: Motel with extensive Food & Beverage

Number of Rooms: 60

Opportunity

RevenYou was recommended by a mutual industry colleague to work with the new owner of a run-down regional motel.  The owner, although new to the hospitality industry, was an experienced businessperson and recognised the need for expert guidance to revitalise this tired yet once much-loved property. 

The property is located in a scenic coastal destination in Tasmania, popular with self-drive travellers. However, to achieve commercial sustainability, the property needed to reinvigorate the conference and event facilities while also attracting locals to dine in the restaurant and bar area. 

Historically, the motel closed through the off-season due to low occupancy. The property had become tired and was in serious need of renovation and infrastructure investment.

The new owner planned to renovate but first needed expert support to address issues with their technology stack and pricing strategies.

Actions

Review the PMS:

• The on-site team were struggling to operate the PMS caused by a lack of training and years of bad management.

• The new owner had begun researching a replacement PMS. RevenYou conducted an audit to identify the underlying issues and found that the existing PMS was the best fit, considering the property’s event spaces, restaurant, bar and number of rooms.

• RevenYou undertook a comprehensive spring clean of the PMS and implemented a training program for the on-site team to build confidence and upskill their operational knowledge.

• One year on, the system remains in place with the on-site team commenting “this is so easy to use”.    

Dynamic Pricing Strategy:

• To fund the renovation plans, a significant increase in profit was required.

• Leveraging our industry expertise and access to local market data, RevenYou, developed a dynamic pricing strategy that accounted for seasonal demand changes.

• One year on, the property has seen a 33% growth in revenue from a 20% growth in occupancy.

 Distribution:

• The property needed to shift its reliance from the self-drive market to a more evenly distributed 365 days demand.

• RevenYou reviewed the distribution network and added appropriate sales channels to tap into the corporate and MICE markets.

• As a result, the property has increased occupancy across all days of the week and is fully booked for next year’s wedding season.

Sales:

• Leisure Market:

  • To increase mid-week leisure bookings, RevenYou worked with industry contacts to implement a wholesale and ITO pricing and distribution strategy. This approach leveraged the flexibility of international travellers regarding nights of stay, while ensuring the important intrastate travel market was not displaced.

  • This has resulted in renewed awareness to international operators - leading to a significant increase in tour series and group bookings.

• Corporate:

  • While the corporate market segment is limited due to the location, RevenYou prospected local businesses and added the property to its representation database,  sharing information with key national accounts in each meeting.

• Weddings and Events:  

  • Following the property’s renovation, RevenYou presented the property to regional, state and national tourism authorities, wedding and event planners.

  • This has resulted in an increase of mid-week conferences and weekend weddings.

  • Stabilising occupancy throughout the week, complemented by a strong meetings and events business, has improved staff retention and enabled more effective recruitment.

• Tourism Organisations and Awards:

  • On RevenYou’s recommendation, the owners have been working with regional and state tourism organisations to increase awareness and reach of their product.

  • This work has led to the property winning five awards in the last six months, providing excellent PR and significantly increasing visibility.

• Marketing:

  • RevenYou set up the property’s social media channels, created a newsletter template and, in conjunction with the on-site team, produced a marketing content calendar.

  • Once established, our team trained the on-site team to take full ownership of these new marketing channels.

  • These marketing activities have resulted in increased visibility, a growth in direct bookings and repeat visitation.

Overall Outcomes:

• Revenue Growth:

  • One year on, the property has increased rooms revenue by 33% or $519k with a 20% growth in occupancy.

  • Forecasts show the property is on track for similar growth in its second year of ownership, driven by longer-lead tours, group bookings and wholesale visitors.

• ROI: for each dollar invested in RevenYou’s services, the property owner has received $21 in return.