47%
Direct Sales in 2024
5* to 4*
Star Rating Change
+3%
Website Sales YOY
Challenge #1 : Maximizing (Direct) Revenue)
The Challenge
As a ski boutique property, the hotel only opens during 5 months per year, with short, high-demand periods followed by complete closure. Reliance on ski tour operators,ย wholesalers and online third-party platforms limited control over pricing strategies and eroded profit margins. Additionally, the hotel was not fully capitalizing on niche winter and ski-specific distribution channels.
The Solution
We deployed a multi-faceted revenue management approach including 3 major opportunties:
Seasonality Optimization
Dynamic pricing models were tailored to the property’s seasonal nature, leveraging demand forecasting to optimize room rates during peak periods. Advanced booking strategies were introduced to maximize revenue during high-demand weeks, while tactical promotions targeted shoulder periods to maintain occupancy. Dynamic Length of Stay management has been essential to optimize occupancy during the full winter season.
Distribution Channel Expansion
To further optimize and reach heights, new distribution channels were strategically added, including ski-specific platforms to capture niche audiences.
Direct Sales Enhancement
A focused campaign to drive direct bookings was executed, including exclusive offers on the hotel’s website and bookings engine, and targeted marketing campaigns such as Google Ads and metasearch advertising.
Action Overview
- Review of all FIT contracts to protect ADR and ensure base occupancy.
- Partnered with the congress centre for early and group bookings.
- Applied minimum stay rules and yielded rate plans in high-demand periods.
- Aligned the demand calendar with feeder market holidays.
- Restricted flexible rates to reduce last-minute cancellations.
- Reviewed OTA strategies and offers to align with overall revenue goals.
- Inventory management to ensure stay-throughs and balanced room type availability.
- Strategies to limit cancellations with non-refundable rates during peak periods.
- Introduced segmentation to better understand distribution and develop targeted strategies for each segment.
- Reviewed OTA content to ensure competitiveness and improved ranking.
The Result
Direct sales share increased significantly, reducing OTA dependency and improving profit margins. Enhanced seasonal pricing strategies maximized revenue during peak ski weeks while maintaining strong occupancy levels throughout the season. The strategic expansion into ski-specific channels effectively captured the targeted audience, boosting overall revenue. The hotel achieved greater distribution control, enabling agile pricing adjustments aligned with market demand.
Challenge #2 : Star Rating Change from 5 to 4 Stars
The Challenge
The hotel needed to reposition itself in a highly competitive market and optimize profitability. The shift in star rating was an opportunity to save operational cost and increase online marketing spend. The change required recalibrating pricing strategies to match guest expectations and market perceptions.
The Solution
A value-driven pricing approach was implemented, focusing on competitive positioning within the 4-star segment. Revenue management strategies included introducing rate fences to capture different customer segments and leveraging seasonal demand patterns. Packages and promotions were strategically designed to enhance perceived value while maintaining profitability.
The Result
The hotel successfully captured a wider audience while maintaining healthy profit margins. Strategic pricing and value-added offerings optimized revenue streams, ensuring financial stability during the transition. This approach minimized revenue disruption and maximized occupancy, solidifying the hotel’s position in the 4-star market.
About the Hotel
This now market leading boutique hotel nestled in a renowned French ski resort, featuring 54 rooms and suites. Centrally located with on-site restaurant, bar, spa, and pool.
Impressed? And also want to turn your hotel into a market leader? Get in touch with us today to find out what our revenue management consulting services can do for your property.
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