- Fierce competition in elite luxury hotel sector
- Need for greater forecasting accuracy and staff efficiency
- Grew revenue and market share due to inventory yielding and maximising rate
- Greater understanding of demand and booking pace
Dorchester Collection is a rapidly expanding, five-star luxury hotel group comprised of seven properties that reach across Europe and the U.S. Its hotels are considered icons in their own right, and already boast a worldwide reputation. To ensure continual global growth and remain competitive in the elite luxury hotel sector, Dorchester Collection needed a seamless automated system that could ensure optimal revenue management best practice, the delivery of accurate demand forecasts, and ultimately greater efficiency. Launched with a goal to become the ultimate hotel management company, Dorchester Collection was also looking for the latest technology to generate robust outputs and solid pricing strategies. For this reason, Dorchester Collection turned to IDeaS Revenue Management System (RMS).
“We are a small and relatively new hotel company with a determination to embrace and lead new thinking in revenue management,” said John Scanlon, Director of Revenue for Dorchester Collection.
The company decided to migrate from their previous revenue management provider and seek a new partner. “IDeaS set up a three-month trial for us, but very early into this trial I remember thinking ‘yes’ this is the right solution and the right company for Dorchester Collection. I could see that their forecasting system was very robust and they had the right support systems in place to handle the demands and needs of each of our hotels, as well as industry-leading resources and knowledge, to lead the way in terms of new developments and meeting our requirements for both today and into the future” added Scanlon.
Redefining efficiency: a culture is born
Since deploying IDeaS RMS across the whole portfolio, Scanlon acknowledges that Dorchester Collection has radically changed its way of working as IDeaS RMS brought in greater efficiencies and accuracy to a revenue management culture that was being instilled into the company. “We have been working with IDeaS RMS for twelve months now, and from a corporate revenue management perspective, I can say that all our hotels are very happy with each of the four key outputs from the system. IDeaS RMS is definitely the most intuitive and robust forecasting system I have worked with,” said Scanlon.
Hotels experience concrete benefits
Dorchester Collection is focused on utilising the system in its entirety, having implemented IDeaS RMS and all its modules. Scanlon was particularly pleased with the benefits derived from the application of the Last Room Value (LRV) along with the Best Available Rate (BAR) module.
“LRV decisions have a massive impact on the overall management of inventory and achievement of rate. IDeaS RMS’ understanding of demand and booking pace at each of our hotels has benefited us hugely,” said Scanlon.
Dorchester Collection has also enjoyed significant returns on investment through the use of the BAR module, which sets the best rate for unqualified guests based on day of arrival and length of stay. “The BAR functionality has been particularly beneficial; for example, at Le Meurice in Paris, it has helped us grow our share of business in both revenue generation and market penetration. The Dorchester in London has also experienced substantial success through the use of IDeaS RMS, and it has helped the hotel maintain its number-one position for RevPAR in its competitive set. IDeaS RMS does work. It drives exceptional revenue growth while providing strategic decision-making support,” concluded Scanlon.
Looking to the future
The deployment of IDeaS RMS has also instilled a great sense of confidence in the Dorchester Collection, while moving forward with their aggressive expansion plan to become the world’s most prestigious and iconic luxury hotel management company. IDeaS RMS will be rolled out to future properties as Dorchester continues to expand its portfolio.
Last Room Value decisions have a massive impact on the overall management of inventory and achievement of rate. The IDeaS RMS’ understanding of demand and booking pace at each of our hotels has benefited us hugely.