Case Study “Revenue is the be-all and end-all for achieving a turnaround”
How can underperforming hotels be brought back on track? In what ways does cloud-based hotel management software drive change? What internal restructuring is necessary for efficient hotel revenue management?
The case study, ”Revenue is the Be-All and End-All for a Turnaround,“ examines these and other issues using the example of two hotels, Carat Hotel Munich and Hotel Müller Munich. Published by hetras, a provider of cloud-based hotel management software, and AHM Hotel Management AG, a Swiss hotel service company. This case study describes how to increase hotel revenue; which metrics can be used to restructure internal hotel operations; and how the corresponding property management system can provide transparency in sales.
The case study provides insight into how the reach, booking rates and revenue per available room (RevPAR) can be improved in a matter of months. Details include guidance on improving the conversion rate of online travel agencies (OTAs), implementing a channel manager, and introducing a new rate structure with the best available rate (BAR).
“In my opinion, the initial situation applies to about 50% of all hotels – particularly smaller individual hotels or groups,” says Michael Lobecke, president of the AHM board of directors. “In this respect, the approach we took could serve as an example for the entire industry.”
In addition to Michael Lobecke, the case study also includes experiences and recommendations for a turnaround from former hetras CEO Martin Reents.