Impact of Right Pricing and Positioning On Hotel Industry

The Client: Alor Holiday Resort is around 5-minutes walk from the famous Calangute beach in Goa. Alor Holiday Resort offers all the prominent facilities like an outdoor pool, fitness center, kids activities. There is a multi-cuisine restaurant that serves Indian and international cuisine as well as a bar.

Issues:

  • Hotel did not explore the possibilities and potentials from the online space although the hotel sell out efficiency was not optimal and had several unsold rooms on a daily basis.
  • Hotel was not able to optimize the positioning legacy through online platforms due to lack of visibility and incisive dynamic pricing. Hotel didn’t consider Day of Week demand dynamix to Price and had flat rates across all day of weeks. This was filling weekends faster and at lower rates; similarly weekdays were not moving due to high prices.
  • Hotel faced setup and integration issues across platforms; this created issues such as Price and Inventory disparities, Overbookings and thus increased opportunity losses.

Strategies Adopted:

Positioning – Team Revnomix initiated focused System Setup and ensured that all the platforms are mapped and integrated appropriately to overcome all the issues related to Price and Inventory disparities. Focused positioning work was initiated to improve in the areas of Content Score, Room Descriptors, Guest Reviews etc. Revnomix also initiated right Tactical, Promotions to bring in right customers and maintained Rate Parity on an ongoing basis.

Pricing – Hotel Priced Flat rates earlier and was losing volume to competition on non busy nights and lost rates across busy and shoulder nights. Dynamic Pricing was initiated based on the demand patterns such as Day of week Volume, Rate, Pace and Business Mix. Room type yielding possibilities were initiated by classifying rooms based on their view, size and location.

Pace – Based on the demand trends and future on the books team Revnomix initiated appropriate tacticals to improve on Pace and Average Length of Stay. Promotions such as Advance Purchase and other fenced products. Creating base far out was must considering hotels large inventory. Promotions and Tacticals initiated to improve on lead time to gain more bookings far out and more rates closer.

Performance – Hotel broke all past records of historical performance. Hotel consistently achieved exponential online revenue growth through increased volume. Hotel was able to successfully increase occupancies through Weekdays and rates through the weekends. Hotel rationalised the demand flow across all channels optimally which was earlier predominantly dependant on one or two OTAs.