Case Study 3: Regional Queensland
Property
Location: Regional Queensland
Type of Accommodation: Self-Rated, 4-Star Motel
Number of Rooms: 20
Opportunity
The owners purchased the property in 2019 with the expectation that it would be a defensive investment – generating a consistent income, rather than growth – and that they could put a manager in place and see the rewards grow.
However, after two years of hard work renovating and watching every other property in town outperform them, they called in RevenYou to determine why the property continued to make a loss in a thriving market. When RevenYou came onboard, the owners established a daily revenue target – calculated on their desired return on investment - that they wished to exceed as soon as possible.
Actions
RevenYou undertook a full review of their PMS, Channel Manager and OTA listings and implemented the following changes:
Added a dynamic pricing strategy that accounted for day of week and seasonal demand, and leveraged peak event periods.
Implemented a corporate rate strategy that sales could take to prospective clients.
Added additional distribution partners that focused on the corporate and government market segments.
Contracted competitive government rates.
Implemented a post-stay email to ensure a constant stream of reviews.
Once a clear pricing strategy was in place and distribution networks audited and refreshed, the sales and marketing team came onboard and implemented the following initiatives:
Undertook a review of the website, Google Analytics and SEO – making the necessary changes – better showcasing the location and incorporating the motel’s unique sales propositions with the new content that was written.
Undertook targeted telephone sales blitzes.
Implemented a social media calendar – ensuring more consistent posting focusing on identified key messaging.
Undertook onsite training with the team – focusing on the importance of collecting accurate guest data - that was then used within quarterly eDM communications to target, and develop repeat visitation.
Introduced the property to large travel agents booking regular clients within the town.
Utilised Lanyon and Consortia to boost GDS production.
Outcomes
Within two months, the business was exceeding its daily revenue target and achieving 100% growth on their original revenue target within five months.
For the 2022 trading period, the hotel increased ADR by $36 per night and room revenue by $335k.
The property is now profitable and the owners are very happy with the results.
Return on Investment Outcome: For every $1 invested in RevenYou, $12 in revenue was generated.
