Enrich Revenue started the 2014 year with a Linked-In message from a hotel owner looking for help with her hotel revenue and distribution. She had just finished 2013 down -8.9% in room revenue and she was in need of professional revenue and distribution guidance as to not repeat this in 2014. Having owned and operated her own hotel for over 15 years, she’s worked with a number of “professionals” and she seemed to never have a good experience, hence her initial skepticism with working with Enrich Revenue.
We started with our initial property review, competitor review and historical review, then we worked on a new strategy and it’s implementation. Like with any new client, you uncover a lot of issues, areas of opportunity and identify their strengths; so as to give them new life and new meaning. We asked a lot of questions, created a lot of reports and then started to give a lot of feedback regarding their current situation and opportunities to improve the business quickly. We set a budget based on all their best months from the past 6 years. Their best January, the best February…you get the idea.
Our client has a great hotel location, great hotel product, great hotel facilities and great authentic service which has never been an issue as this is what they have always done very well. What they needed was someone to be a good sales, marketing, and revenue & distribution service partner. Our client had already set out on building a new website with a new booking engine service provider. Our timing was perfect for making sure this integration was perfect for the client, but more importantly the user. We implemented some new partner channels, closed those that have not or could not produce, then adjusted which room types each partner were to have access too. We then added GDS, which the hotel never used and implemented 4 partners on direct connect vs a channel manager. Even the best, most cost effective channel managers did not add-up for this hotel, as 80% of their business comes direct and the cost for a channel manager was going to be more expensive than our direct connect transaction fees.
Fast forward to September 1st and we have our budgeted room’s revenue on the books, with 4 months still to go to the year-end. The budget was already +17.4% over last year, including the -8.9% lost the year before and another +8.5% in growth for the current year. Based on our review and the opportunities we identified, we we’re confident in our new budget/forecast for the year. I’m being a bit modest when I say that “we succeeded by working together with the hotel owner” and “with amazing results that exceeded far beyond both our initial expectation”. We were able to “improve the hotels YoY room revenues by +32% and while providing the client with a 97% ROI on their investment in Enrich Revenue.
We’re looking forward to having a great 2015! Are you and your hotel ready for 2015? Not sure, maybe we can do it together!