Can you tell us a little bit about your hotel, your story and your destination?
We are a small, budget hotel with 37 rooms. My family and I built the hotel from the ground up starting in 1989 and will shortly expand to 53 rooms. We do actually live on the property and this business is our life. We make it our job to make sure we are doing well, otherwise, we would not be able to provide for ourselves or our staff.
How did you do your pricing before using RoomPriceGenie? How long did it take you?
I was always interested in the topic and I started reading about Revenue Management. I think, sooner or later, everybody has to figure out how they get their prices right. But not a lot of people know about it today and not a lot of people, besides the big players, make use of this. Before using RoomPriceGenie we had a very simple approach to pricing – seasonal rates. We also did not make any short term adjustments.
How important do you think pricing is in today’s world?
Nowadays, it is very important to get your prices right! Prices affect a business hugely and, especially for a smaller hotel like me, getting them right is crucial.
How has RoomPriceGenie changed your business?
I will give you an example: February and March 2019 have been, looking at revenue, the highest months in our 30-year history: We have not had a February with a higher revenue neither have we had a March with higher revenue. This is during our high season and we usually manage to achieve close to 100% occupancy. Compared to last year, this is a 30% increase. And compared to the second strongest February, this is still a 5% increase in revenue – which 100% translates into profit. By finding days that were selling very quickly and automatically increasing prices for those, we managed to significantly increase our performance.
In contrast, April is the first low season month and RoomPriceGenie suggested a different approach than we usually have. Mostly, we are struggling to get customers in at a reasonable price and we drop our rates quite a bit compared to the high season months. This year, we went in with a price that was 10-15% higher than our usual price. Our occupancy was lower, yet we still managed to make more revenue than we ever have before.
What is it that you like about RoomPriceGenie?
It is fabulous! I like the spirit of the team and their attention to my needs. When choosing RoomPriceGenie, I saw that they have very good reviews. Lastly, I really like the simplicity of the system. Other systems look like airplane cockpits. I was looking for something simple and efficient. And today, I can say that I am very happy to use RoomPriceGenie.