- Increased competition in local market
- Lack of revenue management culture, SOP and tools
- Impacted by COVID-19, market RevPAR decreased by 21.3% while the client hotel only decreased by 19.5%, and the hotel’s capacity to resist risks has been enhanced
- Post-COVID, YTD RevPAR increased 121.7% vs. the market (Hangzhou West Lake CBD Upscale & Upper Midscale) increase of 118.1%; client hotel saw enhanced resilience
Hangzhou Zhongwei Sunny Hotel is seated in the flourishing commercial center of Hangzhou, China with 327 rooms, 11 meeting spaces and function rooms, and four restaurants. The hotel is equipped with some of the most cutting-edge, intelligent guest-facing technology, from facial recognition check-in to robotic room service.
“With increased competition in the local market, we realized revenue management culture and tools would empower us to be more successful,” said the hotel’s revenue manager. “But at the beginning, we lacked basic revenue management knowledge, a specialized management team, and processes. We also struggled to collect data efficiently from multiple systems, causing significant blind spots on key business insights.”
Having had success with IDeaS at their sister hotels under the same management company, IDeaS quickly became the frontrunner in the hotel’s search. And after researching other revenue management solutions in the market, IDeaS still won out as being the best fit for the hotel’s business needs—both for its industry-leading software and first-rate services.
In looking for a revenue management solution, it’s important to find a provider that can offer customized, professional support and services to create a sustainable culture of revenue optimization across your organization along with a system that generates reliable decisions.
Tailored Consulting Services
Starting without an established revenue management operation, Hangzhou Zhongwei Sunny Hotel knew it would need hand-in-hand professional support from the outset. With IDeaS’ Revenue Mentor service, an expert industry advisor delivered daily tactical revenue management support to the hotel in the form of virtual revenue management services.
“The major benefit we received was from the consulting service over the past year,” said the hotel’s revenue manager. “Our IDeaS mentor helped us to build the entire revenue culture from zero. His professional advice, great patience, accurate suggestions, strategic mindset together with system tactics helped us to grow significantly.”
Once a dedicated revenue manager was established at the hotel, the IDeaS advisor implemented a mentoring program to ensure the newly-developed revenue management culture would be self-sufficient and sustainable. This involved training sessions on revenue management principles and guidance on how to fully optimize IDeaS RMS in the form of weekly calls, quarterly on-site meetings as well as daily support when required. This series of phases has enabled the hotel to grow a sophisticated revenue management culture across the organization, resulting in optimized pricing, distribution, and forecasting processes.
Sophisticated Technology & Enhanced Resilience
Facing increased competition in their market, Hangzhou Zhongwei Sunny Hotel hoped an advanced RMS would give their business the leading edge. IDeaS did not disappoint. From May 2020 to February 2021, although Impacted by COVID-19, the Hangzhou West Lake CBD Upscale & Upper Midscale market decreased RevPAR by 21.3% compared with the same period the year prior, but the hotel saw total RevPAR decrease only 19.5%, which shows the hotel’s capacity to resist risk was enhanced. In the new normal after COVID-19, Hangzhou Zhongwei Sunny Hotel’s year-to-date RevPAR by May 2021 has increased 121.7% compared with the same time last year, while in the same market, RevPAR increased only 118.1%.
“With IDeaS’ support, we optimized our entire decision process,” said the hotel’s revenue manager. “Now we focus on data analysis on both short-term and long-term business insights to optimize strategy. In looking for a revenue management solution, it’s important to find a provider that can offer customized, professional support and services to create a sustainable culture of revenue optimization across your organization along with a system that generates reliable decisions.”