Case Studies
Below are six case studies for you to discover how our personalised approach has increased our hotel partners’ revenue and occupancy over the years and in different markets.
2019 – 2022
This is a 20-room hotel in a small village managed by a Chef with no time to focus on the profitability of the rooms. RegiÔtels partnered with this property in June 2018 and has collaborated since. There was no channel manager and the contracting was focused mainly on the kitchen with board. The role of RegiÔtels was to focus on the profitability of room sales while maintaining an occupancy that was manageable with the limited staff available to the hotel. The hotelier did not have the time to put in place or manage the technology to optimise his property, there was no channel manager or booking engine. By moving away from tour operator contracting and focusing on direct online business, not only was the average rate increased but also the overall room revenue increased significantly compared to pre-Covid with a reduction in costs given that the commission levels dropped to the tour operators.
Technology in place prior to signing with RegiÔtels:
No channel manager
No booking engine
No optimised website
(RegiÔtels put in place all of the above.)
Results 2022 vs. 2019:
Percent increase in room revenue
Percent increase in average rate
Percent decrease in occupancy
Average Monthly fee on commission-based model throughout collaboration: €1,050
Case Study 2
Luxembourg
2018 – 2022
This 12-room property is located in the countryside of Luxembourg, has no neighbours and partnered with RegiÔtels in October 2017. One of the first hotels to collaborate with RegiÔtels, it underlines the benefits of collaboration very clearly while approaching the six-year anniversary. The hotelier wanted support and expertise without losing control. The goal of RegiÔtels for the property was focused on driving both average rate and length of stay to fit more in line with the lifestyle of the couple managing the property and enable more focus on the kitchen and a better overall experience for guests. By reducing the occupancy and increasing the revenue, RegiÔtels was able to assist in generating better returns for the owners with less work on their side – fewer guests to greet and look after, fewer beds to make. With the market accepting the shift in targeted clientele, the focus for 2023 and beyond will be on maintaining the profitability of room sales.
Technology in place prior to signing with RegiÔtels:
No channel manager
No booking engine
No optimised website
(RegiÔtels put in place all of the above.)
Results 2022 vs. 2018:
Percent increase in room revenue
Percent increase in average rate
Percent decrease in occupancy
Average fixed-rate monthly fee throughout duration of collaboration: €1,700
Case Study 3
Germany
2019 – 2022
This 22-room property located in a town partnered with RegiÔtels in August 2019. Here the focus was more to have visitors making use of the restaurant while maintaining the occupancy. RegiÔtels was brought in to reduce the length of stay to ensure a greater take-up of the gastronomic offering. There was a channel manager and booking engine in place prior to the partnership. Maintaining the occupancy while increasing the average rate has a direct impact on the revenue per available room, a key metric and assures a greater profitability for the proprietors. This property has just signed another two-year contract and their on-the books situation is more impressive already for 2023 than at the same time in 2022 (their best ever year in over twenty years of operation).
Technology in place prior to signing with RegiÔtels:
Channel manager
Booking engine
New website
Results 2022 vs. 2019:
Percent increase in room revenue
Percent increase in average rate
Percent decrease in occupancy
Average monthly fee on commission-based model throughout collaboration: €1,250
Case Study 4
Germany
2019 – 2022
This 31-room property located in the German countryside partnered with RegiÔtels in February 2019 because they wanted to sell their property and retire having managed the property for multiple generations – having support to drive up the figures at the end of the time would have a positive impact on the selling price. The property already had a channel manager and booking engine as well as a modern and up to date website. With the arrival of Covid, the focus was on getting 2022’s results in line with those of 2019, but given the success, now the focus is on seeing out the next five years and using the additional income to renovate the property, bring it up to a more contemporary offering and focus on driving an even better sale price while benefitting from increased profitability and less work in the meantime. The hotel is staffed by the parents and the daughter and seek a variety of approaches for which RegiÔtels is expertly positioned to guide and adapt with.
Technology in place prior to signing with RegiÔtels:
Channel manager
Booking engine
No optimised website
(RegiÔtels was responsible for a new website.)
Results 2022 vs. 2019:
Percent increase in room revenue
Percent increase in average rate
Percent decrease in occupancy
Average monthly fee on commission-based model throughout collaboration: €1,410
Case Study 5
Belgium
2019 – 2022
This 14-room property located in a town in Belgium is managed by the owner and there is just one other staff member to assist with the cleaning and maintenance of public spaces. Having partnered with RegiÔtels in September 2019, the goal was to increase revenues and most importantly length of stay to ensure an easier time with cleaning. There was a channel manager and booking engine already in place prior to the partnership commencing.
Technology in place prior to signing with RegiÔtels:
Channel manager
Booking engine
No optimised website
(RegiÔtels was responsible for a new website.)
Results 2022 vs. 2019:
Percent increase in room revenue
Percent increase in average rate
Percent decrease in occupancy
Average fixed-rate montly fee throughout duration of collaboration: €920
Case Study 6
Belgium
2020 – 2022
This 16-room hotel is a restaurant with rooms as opposed to a hotel with a restaurant. The proprietor did not have the time to manage their room inventory, focusing on the restaurant and wanting that to be the focus of RegiÔtels. The proprietor is responsible for a regional collection of unaffiliated hotels with a similar set-up to their own. Limited staffing, focus on the kitchen and a lack of time to focus on the details resulted in partnering with RegiÔtels in October 2020. In 2022, the hotel recommended RegiÔtels to the affiliate hotels and assisted in an additional five other properties coming onboard such was the support provided and enthusiasm for our partnership.
Technology in place prior to signing with RegiÔtels:
Channel manager
Booking engine
Optimised website
Results 2022 vs. 2020:
Percent increase in room revenue
Percent increase in average rate
Percent decrease in occupancy
Average monthly fee on commission-based model throughout collaboration: €1,010
Hotel in Luxembourg Focuses on Online Distribution and Nearly Doubles Its Revenue
RegiÔtels initiated a partnership with a 20-room hotel-restaurant in a rural area of Luxembourg to improve its occupancy and revenue.
The property was managed by a chef whose main focus for generating revenue was the restaurant. Due to the combined responsibilities of being a restaurant chef and hotel manager, he did not have time to focus on the profitability or distribution of the hotel rooms, thereby losing potential sales and revenue.
RegiÔtels stepped in as a partner to help this hotelier increase the profitability of his hotel business without requiring more work or taking away from his restaurant business.
Initial Challenges
At the time, the property did not have a channel manager or any technology to optimize reservation management, as the focus was entirely on the kitchen. Therefore, the property could not be distributed across different channels due to the risk of overbooking, which impacted its visibility.
The main mission was to improve room profitability while maintaining a manageable occupancy rate with the limited staff available at the hotel. Thus, revenue growth needed to be driven by increasing the Average Daily Rate (ADR), not by occupancy.
Chosen strategies
The hotel was highly dependent on tour operators, selling its rooms at a low rate and losing potential revenue.
RegiÔtels planned and implemented the hotel’s digital infrastructure, either by implementing systems or offering consultancy on which solutions to choose. The hotel acquired an optimized website, a booking engine, and channel manager solutions to receive direct bookings.
With a channel manager, the property was listed on various OTAs, increasing its reach and online visibility. RegiÔtels helped the client choose the best OTAs for their property based on market research and demand, and also assisted in contracting OTAs to ensure the client did not pay unnecessary commissions.
To drive ADR growth, we implemented a dynamic pricing strategy based on data analysis and competitive research. Dynamic pricing would allow the hotel to obtain the highest possible revenue from each room while also filling its minimum occupancy in advance.
By directing efforts towards online direct business and constant optimization of platforms and pricing strategy, we managed to not only increase the average room rate but also significantly increase the hotel’s overall revenue.
Achieved results
At the beginning of the partnership, the property’s annual revenue was €69,089.00. After three years of working together, revenue rose to €133,986.00. During this period, ADR increased from €19.17 to €58.51, representing an increase of over 200%. A truly satisfactory result.
Aligned with the initial expectations, the client was able to achieve the desired result without increasing the staff’s workload. In fact, as we decreased the occupancy rate, the workload also decreased.
As a result, service quality improved, and the staff was able to focus more on the guest experience.
Key Lessons
What can we learn from this case? We managed to decrease the occupancy rate for better management and increase ADR and RevPAR to maximize profits. The result was more efficient and profitable management, even with a small team.
Are you also facing similar challenges in managing your hotel? Let’s discuss how RegiÔtels can help your property.