We're on a mission to help you select the best channel manager available for you, let's continue. We have covered a number of general system selection criteria in the last release. Due to the important role of channel management within hotel revenue management, we’ll now have a detailed look at rate management, inventory management and security related matters. We'll continue from where we stopped last time, with your price strategy.
At Xotels we see a big shift in hotels looking to move to a high quality channel management tool in order to replace some of the tools they are currently working with. Channel management has become an understanding to every hotelier and it is becoming mature. 1000’s of hotels around the world have used channel management tools on a daily basis for years. Step by step the hotel industry is starting to realize that it requires best of breed tools as part of a solid hotel revenue management operation.
Over the last few months Xotels has uncovered hidden revenue potential for the Design Hotel Secret the Paris. Within 6 months of taking on the revenue management strategies for this unique boutique hotel, results have increased with more than 10%. This great success story demonstrates the importance of excellent guest service and online reputation for revenue management.
Traditionally hotel asset management has been focused on operations and cost control. Over the last few years we have seen a clear shift in revenue management getting a more prominent role. Profitability is not only a result of cost control but also revenue generation. Finally we also see sales and marketing become a key area for the by hotel asset manager.
Investing in hotel real-estate requires a lot of funds. We are talking about tens or hundreds of millions of dollars/euros. You need to ensure a proper ROI is generated with such a strategic investment. Moreover hotels are a multi-million dollar operation. In any other industry we would be looking for a well experienced CEO to manage such a company. Who would you trust to manage your hotel investment?
Banks and governments might be struggling, but travel is surely on the rise in Europe. Regardless of the economical struggles in the financial market over the last few months, the European hotel industry is showing strong signals and results. Xotels reports 9,8% RevPar growth in Q2 for its independent hotel portfolio. And heading into the summer months the promising performance continues to hold.