Luxury Hotels Adopt Innovative Revenue Management Strategies In Order To Preserve Profit Margins Through RevPAR Maximization
Although it may seem counterintuitive, managers and owners of luxury and super-luxury properties must practice constant vigilance to maintain profitability. So it makes sense that a new trend in the hotel industry is providing luxury properties with a way to maintain profitability without the significant time and expense of manual revenue management adjustments; the most forward-thinking luxury managers have been quick to embrace emerging technologies - like the REVPAR GURU revenue management software solution - in their quest for maximum RevPAR.
Recognizing the opportunities presented by the proliferation of sales channels as well as the limitations offered by crowded competitive marketplaces, luxury properties are seeking these new, sophisticated ways to put the right room in front of the right (potential) customer at the right time, in order to sell rooms. Cutting edge revenue management solutions like REVPAR GURU's Yield Dynamic Price Engine offer automation, efficient sales channel management, real-time, demand-based pricing, and provide luxury hotels with, not only a way to substantially increase RevPAR, but also a way to defend their margins.
Bruno Perez, Vice President and co-founder of REVPAR GURU said: "With the growth of the online channel, sophisticated RMS technology is the only way for all hotels to be successful over the long-term - no matter whether they are luxury or value-focused properties. More high-end hotels are seeing that even their best customers are now looking for value when booking with a luxury properties, making the right rate the difference between making or breaking a booking."
One of Europe's most prominent and acclaimed luxury properties, Il Salviatino in Florence, Italy, a stunning Renaissance-era mountainside villa recently adopted the REVPAR GURU solution. By implementing the REVPAR GURU system at their historic property, the owners and managers of the Italian gem have taken a proactive stance in maximizing their RevPAR and maintaining a positive cash flow through optimal pricing and inventory management. And it's a decision that is paying off already.
By granting the luxury property the ability to maximize RevPAR on an unprecedented scale, the REVPAR GURU revenue management software solution has effectively provided Il Saviatino with a competitive edge over their competition in terms of profitability, while simultaneously affording them a competitive advantage in terms of pricing.
According to Ludovico Dupré, Vice President of Sales and Marketing for MPg Hotels, "REVPAR GURU is far more than a software solution; it's a way of understanding our business. In these difficult times, lowering rates, as tempting as it may seem, simply cannot be the way forward if we are to ensure the levels of quality and service which we pride ourselves on. With REVPAR GURU, we feel comfortable that our rooms are being sold at the right price and we see this as an important partnership which we plan to expand well beyond our flagship property in Florence."
The use of complex revenue management systems is not necessarily a new development, either in the industry or in the luxury segment. But the widespread use of such systems is a trend that smart luxury hoteliers are adopting to get them through this difficult time in our hotel economy.
Will your hotel be one of them?
About REVPAR GURU
REVPAR GURU provides hotels around the world with an alternative revenue management software solution, to manage RevPAR intelligently and effectively, and deliver maximum profits. REVPAR GURU's custom-designed Yield Dynamic Price Engine meets the rapidly changing needs of hotels in a demanding business environment - dynamic rate optimization, real-time pricing, integrated internet and extranet yield channel management, and GDS sales distribution, to increase a hotel's RevPAR while maintaining rate integrity and automated rate parity. It is the only revenue management solution that automatically optimizes and updates hotel rates across all major consumer travel websites, based on all market variables and in real time, and provides a strategic room inventory control. Once deployed, hotels can boost their occupancy rates and cut their distribution costs dramatically. Headquartered in Miami, Florida, additional information can be found at www.revparguru.com.
About MPg Hotels
MPg Hotels is a new hotel management and development company founded by seasoned hotelier and former President of Intercontinental Hotels for Asia Pacific, Marcello Pigozzo. Aside from its flagship, Il Salviatino in Florence, Italy, MPg is currently developing further projects in Italy, France and the Caribbean. Headquartered in Verona, Italy and with offices in London, additional information about the company and the Florence property can be found at www.salviatino.com and www.mp-g.net.
SOURCE: REVPAR GURU