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.
Remko West of Xotels explains, ‘We are incredibly proud to have added this amazing property to our hotel management portfolio.The Hotel Secret de Paris offers a truly unique experience to its guests. For example, upon arrival you are immediately escorted to your room. There is no unwelcoming check-in process, you are immediately offered to step out of the stress of daily life, and discover the true secrets of Paris in all calmness. Credit cards can wait till later, first you are made comfortable. It creates a real warm welcome, which nowadays lacks in most hotels. And the trust they put in guests, delaying the administrational tasks of receiving credit cards, has no impact at all on collecting payment. The focus on guest service and satisfaction pays off. The hotel is number 9 on TripAdvisor in Paris, competing with 1800 and something other hotels.’
Patrick Landman of Xotels adds, ‘They are not only unique in their guest service mentality, but also in their positioning strategy. We don’t sell rooms in this hotel, it’s all about themes. You can choose from a Moulin Rouge, Musée d’Orsay or Eifel Tower room, among others, depending on your mood or personal preference. This hotel is not a common bed-factory; it is rather an experience of authentic hospitality, a destination in itself’.
Remko West continues, ‘These strong advantages have given the hotel a strong performance compared to the market over the last few years. Having recently taken on the distribution and pricing strategies of this property, we have already uncovered a substantial amount of hidden revenue potential. In a matter of 6 months time we moved the year over year revenue growth to more than 10%, and have identified additional growth opportunities.’
Patrick Landman finishes, ‘Initially we have focused on improving the alignment of the hotels market segment mix. Pricing across various channels had to be streamlined structurally to avoid cross segment cannibalism and ADR erosion. Halting this potential internal price dilution and controlling the pick-up pace at a micro level for both low and high demand dates resulted in a 10% revenue increase.’
Remko West adds, ‘We are now defining the long term positioning strategies for 2013 and 2014, indentifying additional opportunities for growth of both Revenue and the GOP. Paris, France, is a turbulent and dynamic market, showing good signals for growth.’
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Patrick Landman @ Xotels