carathotel München City
The history of carathotel München City is a perfect example of the fate most privately-held hotels are suffering.
Under the auspices of a very experienced and well-connected managing director, the hotel in Munich was extremely successful for several years and gained a stable market position. After the managing director left the company, however, the hotel experienced a severe brain drain as well as the loss of a network of contacts that was established over multiple years. To make matters worse, an outdated online sales strategy contributed to a rapid decline in bookings between 2013 and 2014.
The launch of professional Revenue Management procedures as well as cloud-based Hotel and Revenue Management Software laid the foundations for a successful turnaround in 2015. Based on an average daily rate (ADR) boost of nearly €20, a RevPAR increase of more than half a million euros is an astonishing result for such a fiercely competitive market like the one in Munich. In 2016, our Munich-based city hotel continued to thrive and just like the carathotel Düsseldorf, it registered its most successful year since its inauguration.
2014/2016 revenue development:
You’ll find further details on this project in our “Revenue is the be-all and end-all for achieving a turnaround” case study.