DORMERO Achieves Better Performance through Full Implementation of Revenue Technology

The Story

Sustained growth

Marcus Maximilian Wöhrl opened his first hotel in Plauen in 2006 and by 2015, he operated 12 hotels across Germany with an ambitious plan to grow to 20 properties.

DORMERO Hotels are located in busy German cities, where there is a mix of international tourists and delegates attending business events, all alongside a healthy domestic market. In these locations, there is a significant level of competition for hotel guests.

Accurate forecasting leads to better pricing decisions

The DORMERO Group has a fully integrated revenue management solution for its 12 hotels and uses IDeaS Revenue Management System (RMS) as its main system for forecasting and pricing. IDeaS RMS integrates with DORMERO’s property management system and channel manager, which allows the team to manage and distribute all rates from a central location and automatically update all integrated channels within minutes, multiple times a day.

Substantial improvements in revenue performance can be attributed to our holistic revenue management culture, which in turn is fully supported by the sophisticated analysis, insight and automation benefits provided by IDeaS Revenue Management System.

DORMERO’s decision-making is empowered by this technology and, with a small team, the enhanced revenue management delivers pricing optimisation on the group’s financial results. A revenue management team of two staff members can deliver pricing optimisation across the group’s hotels by taking advantage of the automation built into IDeaS RMS.

When DOMERO determines new pricing strategies, it has become easy to communicate that strategy across the whole group. This guarantees a consistent approach to all enquiries and removes guesswork at the individual hotels. DORMERO, which plans to double in size over the next five years, utilises IDeaS RMS to manage revenue across the group. This allows revenue managers to be centralised and provide enhanced support to each hotel. Additionally, IDeaS RMS creates highly accurate forecasts, informing revenue management decisions and allowing the DORMERO team to model the impact of pricing options.

Increased revenue from targeted market sectors

“With the system in place for more than three years, we are more than happy with its decisions and the resulting revenue increase. The best example would be how we had optimized transient business using IDeaS and achieved an additional revenue uplift of six percent in the first six months in all twelve hotels,” said Max Herbst, director of revenue management for DORMERO.

DORMERO has also seen their group business revenue increase significantly by using the group evaluation module to better exploit the available opportunities. The benefits of using one system for calculating forecasts, determining BAR rates and distributing rates to integrated channels have been substantial for the hotel group.

Substantial improvements in revenue performance can be attributed to our holistic revenue management culture,” said Herbst, “which in turn is fully supported by the sophisticated analysis, insight and automation benefits provided by IDeaS Revenue Management System.