Riding Market Dynamics & Driving Revenue Growth
China has undisputedly become one of the most popular destinations for both business and leisure travelers. The influx of international visitors, coupled with the increase of domestic travelers, has been driving the growth of tourism – especially the hospitality sector in China. International and domestic hotels – including both chains and individual properties – are extending the battlefront from gateway cities to second or third-tier ones.
Jin Jiang International Hotels has been ambitiously expanding its network in China. To keep pace with this phenomenal growth, the company also looks for ways to fine-tune its operations and managerial know-how in pursuit of excellence. Revenue management is one of its top priorities.
IDeaS Revenue Solutions, the leading provider of pricing and revenue management software, services and consulting, has been working with Jin Jiang International Hotels since 2012. In a bid to adopt a more intelligent and robust approach in revenue management, Jin Jiang International Hotels and IDeaS believe that the company should work on developing a strong team of revenue management talents, building and strengthening a revenue management culture throughout the organization, and encouraging and facilitating its hotels to carry out revenue management based on automated data analyses.
The five pilot hotels that have been using the IDeaS VRMS service have achieved immediate results amid the challenging market climate in 2013. Their revenue performances in the first 11 months of 2013 (comparing with that of same period the year before) are:
- West Capital International Hotel has a revenue growth of 4.2%, and RGI* increase 6.5%.
- Jin Jiang Tower Shanghai has a revenue growth of 2.3%, RGI increase 5.65%.
- Jin Jiang Hotel Shanghai has a revenue growth of 3.4%, RGI increase 4.1%.
- Shanghai Galaxy Hotel has a revenue growth of 0.51%, RGI increase 8.9% (as of September 2013)
- Hotel Kunlun Beijing has a revenue growth of 3.3%.
Cinn Tan, senior vice president of Jin Jiang International Hotel Management Co. Ltd., said, “VRMS is a proprietary service of IDeaS and this is one of the key reasons that we decided to work with them. Jin Jiang International Hotels has a full array of well-regarded hotel product offerings. These combine with sound revenue management will enable our company to achieve remarkable performance. With the support of IDeaS, our company has been able to establish a robust revenue management culture. We have also gradually been developing a pool of revenue management executives. We look forward to strengthen our cooperation with IDeaS and keep on delivering results.”