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IDeaS Advisory Services Enables Iconic London Hotel to Enhance Pricing Strategies

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Identifying target competition and positioning a pricing strategy accordingly

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  • Creation of optimal BAR spectrum maximizes ADR
  • Visibility into behavioral segmentation of customers
  • Accurate and timely pricing decisions

The Story

50 years of independent success

Established in 1965, and located in leafy Kensington, the Royal Garden Hotel has royal neighbors, rock star clients, and a worldwide reputation for some of the best views in the city. The Royal Garden offers guests 394 rooms, 17 suites, and 10 function rooms. The Mayfair and Knightsbridge shopping destinations are close by, with several major London attractions merely minutes away

This idyllic location is, however, crowded with competitive hotels—and maximizing the opportunities to attract the right customer at the right price is a key objective for the Royal Garden’s revenue management team. Specifically, the hotel was looking to achieve growth in its average daily rate (ADR) for transient business.

The challenge facing the Royal Garden was identifying its most appropriate target competition amongst the thousands of London hotels and develop a robust pricing strategy

Identifying the tight competitors

“Having partnered with IDeaS since 2007 and using its highly advanced IDeaS Revenue Management System, the Royal Garden has developed a healthy respect for IDeaS’ revenue management expertise,” explained Matthew Burbidge-Airs. “When comparing the depth and breadth of IDeaS’ global revenue & pricing resources with other providers and consultants, it was an obvious choice to select the IDeaS Advisory Services team.”

The IDeaS Pricing Navigator service combines a hotel’s own and third-party data with IDeaS’ market segmentation models to provide the hotel with the best available benchmarks to develop strategic positioning and pricing.

By identifying the critical competitors and reviewing each one against customer review scores, IDeaS has helped the Royal Garden Hotel in three key areas:

  • Assisted in creating an optimal best-available- rate spectrum to maximize ADR
  • Provided the hotel with market segmentation recommendations on how to achieve an optimal strategic business mix
  • Supported the hotel’s revenue management team in fully exploiting available market intelligence (rate shopping, benchmarking and online reputational data) to complement revenue management strategies and tactics to establish maximum market share potential

Right price, right time

The Royal Garden Hotel asked IDeaS Advisory Services to enhance its use of analytics to determine where the optimum customer value resides and used that analysis as an effective platform for pricing decisions. The hotel wanted better statistical business analytics to understand where they can increase profits using price and margin, and to gain insights into which customer relationships can be the most profitable. With IDeaS, the Royal Garden’s revenue management team was able to look at the transaction structure, behavioral segmentation, and price optimization to appreciate the full value proposition for different groups of customers.

IDeaS advisors created a process that facilitates granular data development and analysis to enable accurate and timely pricing decisions.

“IDeaS took the time to really understand our unique setup, which allowed them to make solid recommendations that are realistic and appropriate for our property,” said Burbidge-Airs. “I have no doubt that they will positively improve our revenue processes and performance going forward.”

To fully analyze a complex city like London, we needed to work with advisors who have the breadth of experience and depth of skill in understanding the hotel market and how to optimize price.

– Matthew Burbidge-Airs, Revenue Manager, Royal Garden Hotel