Maximizing Revenue Management Efficiency through Partnership with IDeaS

The Story

You don’t need to miss out on the advanced analytics of IDeaS just because you don’t have a full-time revenue manager. Discover how Dragonfly Strategists, a holistic hospitality advisory firm that specializes in assisting hotels to maximize revenue through tailored strategies can empower your hotel to implement effective revenue management strategies and be the key to optimizing your revenue with IDeaS.

Today, Dragonfly works with over 20 clients who harness the power of the IDeaS platform for revenue management and commercial strategies. IDeaS G3 RMS has assumed a pivotal role in their daily operations, serving as on of the linchpins of their revenue services toolkit.

We spoke with Alise Deeb, Chief Revenue Officer of Dragonfly, to better understand the partnership between Dragonfly and IDeaS.

Overcoming RMS Skepticism

The collaboration between Dragonfly Strategists and IDeaS highlights the significance of effective communication between RMS providers, advisory firms, and clients. Deeb emphasizes promoting a holistic approach that goes beyond basic configurations. Such communication ensures that the RMS is aligned with the specific nuances of the business, market intelligence, and customer dynamics.

Deeb, has become an evangelist for revenue management systems as she guides and educates clients towards total profitability. In her work, she emphasizes the need for hotels to take a thoughtful and deliberate approach to system configuration to ensure optimal performance—whether they are working with an inherited configuration or starting from the ground up.

“If you trust the system, you will sell rooms when you didn’t think you were going to and you’re going to sell them for rates you never thought you could get.”

One common misconception Dragonfly encounters is the fear that implementing an RMS will lead to job loss. Dragonfly stresses that an RMS should augment human capabilities, not replace them, and highlights the importance of proper configuration and training.

“People assume that if you turn on an RMS, you’re going to lose your job. That’s not the case—it still needs a driver, and the configuration
is so important” said Alise Deeb, Chief Revenue Officer.

Insightful Implementation

A big piece of Deeb’s work is to challenge clients’ preconceptions and ultimately getting them to be more open minded about their pricing optimization strategies. Dragonfly’s approach involves tailoring pricing strategies to a hotel’s specific needs. They commonly advocate for clients to develop a more refined division of room categories, emphasizing the importance of understanding their true value in order for G3 RMS to make precise decisions. Their foundational work is crucial in their comprehensive approach to pricing strategies.

During the implementation process, Deeb starts with building the pricing schedule and thoroughly understanding all room types. By analyzing seasonality and market performance, Deeb and her clients gain insight into their pricing decisions and competitive positioning.

“By doing this, not only do you understand how you’ve been performing, but why you are pricing the way you price and if you even have the right competitive set,” said Deeb.

Deeb loves having a “hotel within a hotel” through room classes. They can treat standard rooms, junior suites, suites, and residences differently depending on their specific needs—and see ADR growth.

With their meticulous approach, Dragonfly helps their clients make informed configuration and strategy decisions that position G3 RMS users for lasting success.

Effective G3 RMS Configuration

One specific challenge Dragonfly faced was helping a group of hotels transitioning from another RMS provider to G3 RMS. These hotels initially struggled with the setup of G3 RMS as they were trying to do so in the same manner as their previous vendor which proved ineffective. Through their guidance and expertise, Dragonfly facilitated a successful transition by changing the client’s approach, resulting in substantial improvements in their revenue management practices and an uplift in KPIs.

This scenario emphasizes the importance of understanding the unique features and configurations of G3 RMS and the need for a tailored approach to best meet the ongoing needs of individual properties. Some hoteliers may have reservations about using an automated RMS, with preconceived notions often rooted in past negative experiences or anecdotes. However, Dragonfly has demonstrated that a thoughtful approach and proper configuration can lead to positive results that even the biggest skeptics cannot ignore.

Dynamic Pricing Success With G3 RMS

Deeb shared two success stories where the implementation of G3 RMS resulted in significant revenue growth. In one case, a hotel owner initially believed they did not need an RMS for their luxury property that was already getting $1,500 per night, but G3 RMS helped them increase rates and achieve record ADR.

“If you trust the system, you will sell rooms when you didn’t think you were going to and you’re going to sell them for rates you never thought you could get” said Deeb.

In another instance, G3 RMS facilitated a remarkable $40 ADR growth in the initial year after implementation for a hotel in New York City, demonstrating the system’s capability to pivot and adjust pricing strategies dynamically.

Results and Conclusion

The success stories shared by Dragonfly Strategists underscore a crucial message: the absence of a full-time revenue manager should not deter hotels from harnessing the power of a sophisticated revenue management system like IDeaS G3 RMS. Dragonfly’s expertise and collaborative approach not only bridge the gap but also dispel common misconceptions, emphasizing that an RMS, when properly configured and integrated, creates a pathway for hotels to optimize revenue, navigate dynamic pricing challenges, and thrive in an ever-evolving hospitality landscape.