SUPPLIER ARTICLE
MANDEVILLE HOTEL BOOSTS ITS DAILY RATE WITH IDEAS G3 RMS
Take the trouble out of revenue management and meet high demand
T
he Mandeville hotel operates in a crowded and competitive market, and its management continues to invest in
and leverage technology to optimise revenue performance and gain a competitive edge over rivals. Looking for a more advanced system with the capability to yield by room type, the hotel transitioned to IDeaS G3 Revenue Man- agement System (IDeaS G3 RMS) in 2017. “IDeaS RMS had worked very well, but at
some point, we realised we needed to be able to yield by room type,” said Enrique Pacheco, revenue manager at the Mandeville hotel. “We started investigating the market to find the best product, and we were shown IDeaS G3 RMS. For us, the choice was obvious.” The new functionality allowed Pacheco
to boost the price for a particular room type without the rise being automatically applied to other categories. “If IDeaS G3 RMS detects high demand in a
certain room type – for example, with superior doubles – it will increase the price for that spe- cific room type but leave deluxe rooms at the same rate,” said Pacheco. “This seems obvious because this is what yielding is about, but no other system offered this functionality.” Since implementing the new system, the
50 | Technology Prospectus 2024
“The key contributor to the improvement is that we’re now yielding by room type”
hotel has enjoyed significant gains in perfor- mance. Senior managers noticed an instant improvement in the average daily rate (ADR) of around 3% and a year later, ADR across all room types had risen to 5%. “The key contributor to the improvement
is that we’re now yielding by room type,” said Pacheco. “We’re selling our different room types at the correct price.” However, he has faced some challenges along the way. “I’ve occasionally had to explain some pric-
ing decisions to my colleagues,” said Pacheco. “For example, sometimes our deluxe rooms were cheaper than our superior doubles. This is all down to demand – more people wanted that specific room type, which quite rightly pushed up its price. In this scenario, using IDeaS G3 RMS ensured we didn’t sell our superior dou- bles too quickly at the wrong price, and at the
same time, it encouraged guests to book the other room type that wasn’t moving.” “Effectively, each room type has its own
best available rate, so we’re now selling more rooms at the correct rate, and we’re also avoid- ing overbooking a certain room type and then having to move guests to a bigger room.” Pacheco’s support for IDeaS G3 RMS isn’t
limited to the system generating a higher ADR. He’s also a fan of the quick, precise reports and forecasts it generates, allowing him to plan more accurate promotions and campaigns. Additionally, the platform gener- ates reports with revenue shown by rate codes for each provider, allowing him to analyse spe- cific channel performance. “We’re quite a small hotel compared to most
of our rivals,” said Pacheco. “However, it’s an advantage as it forces us to be clever and cre- ative. We’re expanding which means there will be more room types for IDeaS G3RMS to help us optimise and maximise revenue.”
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