How a Regional Resort Increased Occupancy, ADR and Market Share to Drive Revenue Growth
Property
Location: Regional Town
Type of Accommodation: 4-star Resort Town
Number of Rooms: 41
Opportunity
Having been family-owned for over 20 years, the property faced challenges due to a decline in visitor numbers to the region. The owner was recommended to RevenYou by their PMS supplier to gain support and insights on strategies to rejuvenate a slowly dying business..
RevenYou was brought onboard with the objectives of correcting the hotel’s underperformance; and in conjunction with a new onsite manager, focus on capturing greater market share and delivering similar growth to that being experienced by their direct competitor set.
Actions
RevenYou reviewed the PMS, Channel Manager, and distribution network and implemented:
Dynamic pricing strategy.
Added appropriate distribution partners to target corporate and leisure bookings.
Added a GDS distribution partner.
Shut wholesale rate channels which were not performing due to closed borders.
Implemented a corporate rate strategy that sales could take to prospective clients.
Contracted competitive government rates.
Implemented pre-stay emails and SMS messaging to ensure all arriving customers were prepared for contactless check-in
Implemented post-stay emails to generate a constant stream of positive reviews.
On the development, and implementation, of a new pricing strategy and the refresh of distribution channels, the sales and marketing team undertook the following:
Established social media channels for the onsite team to share regular updates.
Local corporate telephone sales blitz targeting new clients.
Introduced the hotel to corporate travel management companies.
Undertook a telephone sales campaign targeting group and event accommodation.
Developed and uploaded a range of packages and promotions to increase the hotel’s offer, and assist with SEO and website ranking.
Reviewed Google Analytics and actioned change where necessary.
Trained the onsite manager in the collection of usable guest information data for sales and marketing purposes – using this data to encourage more direct bookings.
Outcomes
The hotel increased occupancy by 29%, ADR by $20 per night and increased gross room revenue by $670k.
We are now working with the owner at their three other hotels - applying similar, but tailored, revenue management, sales and marketing strategies.
Return on Investment Outcome: For every $1 invested in RevenYou, $24 in revenue was generated
FAQ’s
How can a regional resort grow market share and improve revenue in a competitive market?
Growing market share starts with making sure pricing, distribution, sales and marketing are all working together toward the same commercial goal. In this case, the property reviewed its PMS, Channel Manager and distribution setup, then introduced a stronger pricing strategy, more targeted distribution partners and a clearer corporate rate approach.
Once those foundations were in place, the sales and marketing activity was strengthened to support more consistent demand and better visibility in the market. That approach helped the property increase occupancy by 29%, grow ADR by $20 and lift gross room revenue by $670k.
