When we think about revenue management, we often think of large cities, overbookings, big box hotels and a competitive marketplace. We don’t typically think of a 44-room inn located in a remote destination. However, Rate Yield sat down with their loyal client, Manoir Belle Plage, to discuss what the revenue management software has done for them.
Héloïse T. Beaumont was forthcoming in saying that she was skeptical at first. Given the size of the hotel, as well as how they had always managed pricing manually with great results, she didn’t feel that Rate Yield was a worthy investment.
When they originally implemented the software, the results were just fine. But after investing time with Rate Yield’s consulting service, she became a believer. While the Rate Yield team was recommending higher prices, Héloïse worried that they were too bold and occupancy would suffer. However, even post pandemic, they are seeing increased occupancy, increased rates, and as a result, a significant increase in revenue. The return on investment of Rate Yield is an impressive 25:1.
Héloïse also shared that for their hotel, Rate Yield was the only way to increase revenue. They could not build additional rooms and with the seasonality of the destination, increasing demand in the off season was not so simple. Rate Yield allowed them to increase their prices beyond what they thought possible by removing their own biases and letting the system do its work.
But it isn’t totally simple. Setting it up properly requires that the team be all-in and invested in the project. Then, once the algorithm is fine-tuned, you can save an enormous amount of time. Especially in recent times when staffing is an issue, offloading the role of yielding on a daily basis allows the team at Manoir Belle Plage to focus on the customer experience and strategic projects.
Finally, Héloïse said that while we typically think of an RMS for a larger hotel, she believes the contrary. Rate Yield provides an opportunity to learn about revenue management, to challenge your way of thinking and to grow revenue!
