High fluctuation in demand causes uncertainty in maximising RevPAR and ADR
- 20% increase in revenue between occupancy and ADR after 10 months
- Increased occupancy on shoulder nights
The Metropol Hotel, arguably the most famous hotel in Moscow, has embraced the latest in revenue management technology within their architecturally unique five-star property. Moscow’s recent spike in tourism has created a considerable ongoing challenge for hoteliers to capture the most profitable guests.
Julia Vereskun, director of revenue at the Metropol Hotel, describes how revenue management at the hotel has evolved to optimise performance within their dynamic and competitive city centre market. “Even as Russia’s most historic hotel—with a 112-year pedigree and some of the best examples of art nouveau architecture anywhere—it is vitally important we use revenue management to compete successfully within this expanding market,” explained Vereskun.
“Our central location and world-famous Metropol Hall restaurant attract large numbers of guests, but we want to offer the right room to the right guest at the right time.”
Looking to evolve the manual process previously informing their decisions, Vereskun’s team reviewed revenue technology providers against two broad criteria: the scope of the technology and how each provider handled an ongoing relationship with its clients. The hotel identified the specific functionality they required, which included automated processes, sophisticated forecasting and shoulder night capabilities, all of which save time and allow their team to focus on optimising average daily rate (ADR) and increasing revenue per available room.
“We knew that IDeaS and their RMS would deliver the best technology for us to use,” added Vereskun. “But we were especially impressed to learn how they looked after their clients during the implementation stage and then as an ongoing partner.”
A fast return on investment
Following implementation, the hotel’s revenue management team quickly saw the system provide accurate forecasts and insights that led to decisions needing very little adjustment or additional inputs. Almost immediately, the team could re-focus their efforts on strategic approaches and managing emerging trends, such as shorter booking windows.
Another challenge was managing the increased booking volumes coming from the enhanced distribution of online travel agencies, and ensuring the higher occupancy levels were balanced with the best possible prices.
“Reviewing the results of the past ten months revealed considerable improvements in performance, with a 20% rise in revenue split equally between occupancy and ADR,” concluded Vereskun. “The hotel also achieved one of the important objectives: to increase occupancy on shoulder nights.”
We knew that IDeaS and their RMS would deliver the best technology for us to use, but we were especially impressed to learn how they looked after their clients during the implementation stage and then as an ongoing partner.