Delaware North: Maximizing Profitability and Enhancing Revenue Management with Optix

The Story

Delaware North is a leading entity in the hospitality sector, renowned for managing a diverse portfolio of lodging, entertainment, and food service businesses. This includes an expansive portfolio of 20 lodging properties using IDeaS G3 RMS, including hotels, properties within National Parks and more. These diverse hotel and accommodations assets require a sophisticated approach to revenue management, analysis, and reporting at scale. —and to tackle these challenges and maximize profitability, Delaware North turned to Optix for G3 RMS.

Need For Granular Data Analysis

Delaware North experienced significant difficulties in efficiently analyzing data before adopting Optix. The complexity of managing flow-through highlighted the need for a tool that could provide detailed insights. Optix offered the ability to look closely at each property’s business mix and market segmentation, which was crucial for strategic planning.

“If you don’t get granular into what is happening with your business you could be missing out on opportunities,” shares Donald Foste, Vice President of Sales for Delaware North.

Objectives And Benefits Of Implementing Optix

When selecting Optix, Delaware North had three primary objectives:

1. Insight into Segmentation: Understanding the different market segments and their contributions.
2. Forecasting Capabilities: Enhancing the ability to predict future demand and adjust strategies accordingly.
3. Comparative Analysis: Comparing the G3 RMS forecasts with internal forecasts to validate and refine projections.

“Optix has enabled us to gain deeper insights into our operations, identify the sources of our revenue, and determine where our sales efforts should be concentrated. This helps us pinpoint the right moments for marketing initiatives and develop a comprehensive strategy to drive revenue growth.”

Strategic Shifts And Improved Agility

Optix enabled Delaware North to shift its strategy significantly. For instance, at one property, the revenue manager identified
that 64% of their business for an upcoming period was from tour and travel, independent wholesale, and OTA segments with an ADR below their target. This insight allowed the revenue manager to adjust the strategy, focusing on more profitable segments and collaborating with marketing to meet targets.

“Optix gets everyone on the same page and moves them forward,” noted Foste.

Another game-changing feature is the ability to examine market segments day-by-day. Previously, the team relied on daily snapshots from their PMS without segmentation insights. With Optix, they can analyze segments and booking windows, leading to more agile and informed decision-making.

“We are familiar with our business, but we didn’t fully understand its dynamics,” Foste said. “Optix has enabled us to gain deeper insights into our operations, identify the sources of our revenue, and determine where our sales efforts should be concentrated. This helps us pinpoint the right moments for marketing initiatives and develop a comprehensive strategy to drive revenue growth.”

Additionally, the roll-up functionality in Optix allows the team to see how a region is performing as a whole and then drill down to individual properties to enhance profitability. The Performance Summary feature is a noted favorite among the Delaware North team as it provides a snapshot of performance, allowing comparisons with previous periods to identify trends and areas for improvement.

Results Delivered

Delaware North’s implementation of Optix has revolutionized their approach to revenue management. By providing insights, enhancing forecasting capabilities, and enabling agile decision-making, Optix has helped Delaware North improve profitability and better understand their business dynamics. The strategic shifts and improved alignment across the organization underscore the transformative impact of Optix on Delaware North’s operations.

Foste recalls the telltale sign that implementing Optix was a worthwhile decision, “The questions directed to our department are now more informed, aligned, and focused than they were in the past.”

With the team better informed and aligned thanks to Optix, Delaware North is positioned for continued success across its large portfolio of diverse accommodations.