- To maximize ROI following major renovation, tools were needed to price more effectively
- The need for quick and reliable market information
Loews Coronado Bay Resort saw 19.5% increase in ADR and 15% increase in RevPAR
“A year after renovation, the Coronado Bay Resort has been getting phenomenal results,” said Reid Burkett, regional director of revenue management, Loews Hotels and Resorts. “IDeaS RMS has enabled us to price more competitively, yield out the non-profitable business mix, and make more strategic decisions about groups. The gains are enormous.”
With ambitious growth plans and a continually expanding portfolio, Loews Hotels and Resorts recognized the importance of having an automated revenue management system to help streamline revenue management processes and optimize hotel rates.
In 2011, Loews Hotels and Resorts began a nearly nationwide rollout of IDeaS Revenue Management System (RMS) from IDeaS Revenue Solutions. Equipped with the Group Pricing and Daily Best Available Rate (BAR) modules, the system provides reliable, up-to-date market information quickly and easily so that Loews’ revenue managers can make smarter, more strategic revenue decisions. By summer 2013, Loews Hotels and Resorts had implemented IDeaS RMS in 15 properties.
“IDeaS RMS is a great tool for managing demand and honing in on that premium customer,” said Burkett. “Because of the system, our conversations around demand, price position, and yield mix are more mature, and more of our decisions are based on analytics.”
A rehab benefit
For Burkett, having an automated revenue management system is also beneficial for newly renovated properties. With inventory back on the market, the system’s comp-tracking capabilities enable Burkett to more strategically price updated properties by seeing what his competitors are charging for similar renovations.
“Alternatively, when rooms are off the market, IDeaS RMS helps drive in the most profitable business for available inventory,” said Burkett. “In part because of IDeaS RMS, we’re seeing properties with rooms off the market doing better than expected.”
A sunny forecast
For hotels such as the Loews Coronado Bay Resort, IDeaS RMS has yielded a substantial return on investment: a 19.5 percent increase in ADR and a 15 percent increase in RevPAR.
“Since pre-recession times, the hotel is performing better than ever,” said Burkett. “As Loews continues to expand, IDeaS will play a key role for optimizing revenue at both new and existing properties.”
As Loews continues to expand, IDeaS will play a key role for optimizing revenue at both new and existing properties.