Grandhotel Zvon is an award-winning, upscale 4-star hotel, situated in the historical centre of Ceske Budejovice. This international hotel brand has spacious, air-conditioned deluxe rooms and junior suites, fitted with high-quality furniture and luxurious fabrics. The team wanted to upgrade its manual database operations that were adversely affecting the quick decision making and add more sophistication to combat price wars, inflicted by low demand. Grandhotel Zvon chose RevGain to address the above challenges, adopt scientific pricing and drive more ADR and revenue. Since partnering with RevGain around a year back, the hotel has not only achieved 7.6% increase in its ADR, but also a spectacular growth in its revenue by 34%.
The Challenge
The revenue management team at Grandhotel Zvon was facing many challenges in pricing and revenue management areas. The team was primarily replying on manual revenue management processes that were negatively impacting its fast decision making. The manually maintained spreadsheets posed a slow and painful process. To add to that, tough economic scenario had decelerated the country’s growth and also the raw market with limited yield management practices further compounded the adverse situation. The hotel was also finding itself battling price wars, inflicted by low demand and desperate measures to increase occupancy.
The team realised that there had to be a simpler and smarter way of improving their overall performance and speeding up their pricing decisions. After evaluating many tools, the team ultimately decided upon RevGain that combines market insights and scientific pricing to help your hotel generate more transient revenue.
The Solution
Petr Salda and the team researched extensively about the scientific pricing as a methodology and RateGain’s price recommendation tool – RevGain. Considering this as a potential game changer in the Czech Republican market, Grandhotel Zvon settled on RevGain.
The first-hand experience of the scientific pricing capabilities of RevGain infused tremendous confidence with hard metrics in the team of Grandhotel Zvon that was earlier using a static pricing model and thus grappling to determine rates dynamically and track the booking pace.
Another key success factor for the team was that RevGain red flagged problems and opportunities and triggered comprehensive insights and action from market trends. The solution also took account of guest sentiment in a measurable way.
The team worked with their RevGain consultant to ensure that all members were comfortable using the solution. The team also leveraged the consultant’s knowledge on top tips and best pricing practices. The top-class account management team available round the clock was also one of the success factors for Grandhotel Zvon.
The Results
RevGain has helped Grandhotel Zvon identify the cause of the demand shift and automatically respond to market volatility in real time. Its powerful data science algorithm coupled with competitive benchmarking that drills down insights on trends and data for each date has helped the hotel in achieving complete transparency and also in future decision making.
Another important RevGain impact is that the hotel is now completely rid of the cumbersome spreadsheets. The hotel has cited 7.6% increase in its ADR since they started to use the RevGain solution. There has also been a stellar increase in its revenue growth by 34%.
