Keahotels

Keahotels is one of Iceland's leading hotel groups, with 10 properties totaling approximately 900 rooms. Its portfolio includes properties such as Hotel Borg, a Reykjavík landmark since 1930, boutique stays on Laugavegur, a hotel in Akureyri, the capital of North Iceland, and the distinctive Hotel Sigló in Siglufjörður. What connects them all isn't a shared concept but a shared standard: strong locations, personal service, and authentic Icelandic hospitality.

Overseeing revenue strategy across all ten is Ernir Steinn Arnarsson, Head of Revenue Management. He is responsible for pricing, forecasting, distribution, and market intelligence across the full portfolio. Today, every property runs on RoomPriceGenie.
Photograph showing Keahotels.
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Ernir Steinn Arnarsson, Head of Revenue Management
“RoomPriceGenie handles the frequency and volume; we provide the direction and judgment. It has freed the revenue manager to spend more time doing actual revenue management.”

Ernir Steinn Arnarsson, Head of Revenue Management

The Challenge

Iceland is an accelerated education in revenue management. Demand is international, highly seasonal, and sensitive to airline capacity, exchange rates, volcanic activity, and global sentiment. Normal market conditions rarely stay normal for long, which makes pricing both high-stakes and hard to automate well.

Before RoomPriceGenie, Keahotels had tried both ends of the RMS spectrum. A traditional rule-based platform gave them control in theory, but Iceland's demand can shift dramatically within a single week — a setup that made sense on Monday often needed intervention by Friday. A more sophisticated AI-driven platform solved the operational load but created a different problem: its pricing decisions didn't consistently reflect Keahotels' commercial strategy. As Ernir puts it: "The technology had changed; the workload had merely changed clothes."

The root issue was transparency. Without visibility into how the model weighed different signals, the team faced risk in both directions — reacting too slowly, or pushing rates beyond what the market could support. They needed automation that could handle the volume no human team could match, while remaining explainable and strategically aligned with each property.

The Trigger

The introduction to RoomPriceGenie came through GODO, Keahotels' PMS provider. GODO had worked with multiple RMS integrations and specifically recommended RoomPriceGenie for the quality of its two-way connection — a detail that matters more than it might seem. Even a strong pricing engine loses value if the PMS connection creates delays or data gaps. That recommendation gave Keahotels the confidence to evaluate RoomPriceGenie properly, and once they did, the decision was straightforward.

The Solution

Onboarding ten hotels could have been complicated. It wasn't. Led by Gustavo Peña from the RoomPriceGenie team, the process was thorough, commercially focused, and free of operational surprises. "Our major concerns were addressed in the first meeting," Ernir says. "We were live on Autopilot within a couple of weeks." He rates the experience ten out of ten.

In practice, the biggest change has been a shift in what the revenue function actually spends its time on. Rather than working through individual rate adjustments across ten properties and hundreds of arrival dates, the team now focuses on forecasting, market analysis, and long-term strategy. Ernir can understand how prices are being set, shape direction at the portfolio level, and manage each property individually, without maintaining a rulebook or second-guessing a black box.

"My favorite test for an automated RMS is: how often do I need to log in to correct it? With RoomPriceGenie, the answer is: rarely."

The Result

Keahotels has been on RoomPriceGenie for a relatively short period, and Ernir is clear-eyed about attribution — Iceland's market rarely allows a clean year-on-year comparison, and the reference period included a solar eclipse and a major festival. With that context noted:

- ADR up 17.46% year-on-year
-Occupancy broadly in line with the previous year, with market share strengthening
-Total revenue up approximately 2%

The market-share gain is the metric Ernir values most — in Iceland, where occupancy is largely driven by external factors, relative market position is the truer performance indicator. Beyond the numbers, the operational return has been immediate: less time on manual rate adjustments, more capacity for the strategic work that actually moves the needle.

"It hasn't made the revenue manager less relevant. It has freed the revenue manager to spend more time doing actual revenue management."

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