- Finding optimal price points for group business
- Understanding market sensitivity for group business
- Balancing corporate and group rates during Special Events
- Increased group ADR 9% from 2021 to 2022
- Optimally pricing group business during high demand Special Events
Citadines Arnulfpark Munich hotel is ideally situated just a few minutes away from Munich’s main train station and the city center. The hotel offers guests a variety of modern and functional rooms, studios, and apartments, making it suitable for both short and long stays. A key feature of the property is its fully equipped kitchens, which appeal to guests requiring more space for extended stays.
With Munich being a culturally rich and dynamic city, Citadines’ location in the business district of Arnulfpark provides a significant advantage in attracting group business. Citadines’ unique offering of long stay products in a prime city location differentiates it from competitors.
A Trusted Advisor for Challenging Group Pricing Evaluations
Group business in the German markets is unique and price sensitive. Stephan Muhs, Citadines’ Area Revenue Manager for Germany knows this well. Prior to implementing the Group Pricing Evaluation tool within G3 Revenue Management System (RMS), Muhs thought he had the process of manually quoting group rates down to a science. However, with the introduction of G3 RMS’s Group Pricing Evaluation tool, his pricing expertise was enriched and verified with the help of G3 RMS’s powerful analytics capabilities.
The Group Pricing Evaluation tool leverages user configuration, displacement analysis, and relevant data like forecasted occupancy, property capacity, and the likelihood that the group will accept the rate to generate optimal group pricing quotes. Muhs then layers in his own market knowledge and experience in manually quoting groups as a final guardrail when evaluating the tool’s suggestions.
Muhs understands and values the relationship between his system configuration inputs and the success of G3 RMS’s outputs. As he initiates the quote creation process, Muhs says he often approaches it with a specific rate in mind and consistently discovers that he and G3 RMS are in sync. Even in scenarios where his pricing thoughts are on target, Muhs appreciates having a system to help him check and validate his conclusions.
While G3 RMS is a consistent input in Citadines’ Arnulfpark Munich group pricing process, Muhs recalls a specific example of its value during the always-busy Oktoberfest celebration. The prospective client, who’s negotiated corporate rate is €120 approached Citadines with a group inquiry. Both Muhs and the residence manager knew an increased rate was in order for such a high-demand period, but there was still a degree of uncertainty about how much higher the market would tolerate. The residence manager suggested a €220 rate, but after running the group through G3 RMS’s evaluation, Muhs knew that no less than €300 should be offered.
G3 RMS successfully kept them from underpricing because the group accepted the €300 rate. This highlights the good relationship the property has with G3 RMS to serve as a trusted advisor and third opinion among experienced staffers.
Group Pricing Evaluation Drives Results for Citadines
The implementation of the G3 RMS Group Evaluation tool yields promising results for Citadines Arnulfpark Munich. This successful complementary relationship between user configuration, market knowledge, and G3 RMS’s analytical evaluations led to increased ADR for group business in the past year post-pandemic.
By streamlining the quoting process and leveraging the tool’s accuracy, Citadines Arnulfpark Munich was able to optimize their group pricing strategies and attract more group bookings. Compared to 2019, which was a record year for German markets, Arnulfpark saw a 9% increase in group revenue while the Citadines property in Hamburg saw a 25% increase in group revenue. While that’s a welcome outcome on its own, a continued stabilization in post-COVID group business after means there will be more opportunities for Citadines to generate additional value with the Group Pricing Evaluation tool.
“Once it all comes together, that is our success. It’s not just one tool or one person doing the pricing. Between G3, our residential manager and I, we essentially have three experts working together.”