Plava Laguna’s Success with IDeaS and PHOBS

The Story

Plava Laguna, one of the largest hospitality companies in Croatia, first opened its doors in 1957 as a campsite-hotel. Headquartered in Porec, the company has grown its chain through strategic acquisitions and now boasts a diverse portfolio that includes 4 resorts, 24 hotels, and 13 apartment communities.

Plava Laguna’s owners identified the necessity of an automated revenue management system to stay competitive. They were committed to finding a solution that would integrate seamlessly with their property management system (PMS), PHOBS, also based in Croatia. Bojana Benazić, Plava Laguna’s Head of Revenue Management has been instrumental in the exploration of revenue management tools to enhance the company’s operational efficiency and profitability.

They ultimately selected G3 RMS due to the exceptional value it offered compared to its cost, the proven capability to handle diverse property types, and IDeaS’ strong reputation as the market leader in revenue management software.

“IDeaS’ extensive portfolio, encompassing diverse types of hotel businesses, gave us the confidence that G3 RMS can effectively manage our varied hotel operations,” Benazić said.

IDeaS’ solutions offer flexibility, boost efficiency

Because Plava Laguna hotels often compete among themselves in unique destinations with minimal external competition, IDeaS’ tailored approach was particularly appealing. Their diverse portfolio of hotels, villas, and mobile homes required a versatile solution, and IDeaS G3 RMS provided the necessary flexibility and robustness to meet these demands.

Prior to implementing G3 RMS, Plava Laguna manually managed all rate changes and data analysis, which was time-consuming and slow. Given their highly seasonal business, with occupancy rates fluctuating dramatically, the need for swift and efficient pricing adjustments was crucial.

“Implementing G3 RMS didn’t reduce the size of our revenue team; instead, it significantly boosted their efficiency.”

G3 RMS’s automated forecasting and dynamic pricing significantly improved operational efficiency for Plava Laguna, allowing the small team of four to manage twenty-four properties and nearly 5,000 rooms. The automation of rate changes and data analysis freed the team to focus on strategic tasks rather than repetitive manual operations.

The ability to focus on long-term strategy, increase the speed of decision-making, and enhance team efficiency were notable advantages. G3 RMS automated many elements that were previously handled manually, enabling the Plava Laguna team to concentrate on strategic revenue management rather than operational tasks.

Furthermore, their longstanding partnership with IDeaS has fostered a deep familiarity, making IDeaS employees feel like colleagues who understand Plava Laguna’s unique requirements and consistently provide effective guidance.

PHOBS and IDeaS provide strong tech foundation

Plava Laguna’s relationship with PHOBS, which began in 2016, has been a cornerstone of their operational strategy. Initially used as a channel manager, PHOBS evolved into a comprehensive reservation system.

The process of integrating IDeaS and PHOBS was intricate and required close cooperation between Plava Laguna, IDeaS, and PHOBS. The teams worked proactively to discuss every detail of the systems’ functionality and data flow. This collaborative effort provided Plava Laguna with a deeper understanding of data utilization within the RMS, enhancing their overall knowledge of revenue management processes.

“When we began automating elements that were previously done manually, it was a significant step forward. For me personally, the biggest advancement was the automation of distribution and ensuring consistent inventory availability across channels through the collaboration between PHOBS and G3 RMS,” shared Benazić.

In 2023, Plava Laguna saw a 30% increase in arrivals compared to 2022, driven by a strategic focus on direct bookings. This shift placed greater demands on their systems, which PHOBS adeptly managed, ensuring efficient operation during peak seasons.

Results

With PHOBS and IDeaS, all systems work seamlessly together, handling the increased demand effectively while supporting Plava Laguna’s growth and operational needs.

Plava Laguna recommends using both tools, “IDeaS and PHOBS significantly enhance our efficiency. The speed we’ve achieved with using them is unparalleled; no individual could match this level of productivity.”

Plava Laguna’s investment in integrated hospitality technology has shown strong results. Since implementation, key performance metrics such as Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) saw substantial improvements. In 2023, Plava Laguna experienced a 9% increase in ADR and a 17% growth in revenue compared to 2022.

For hotels considering similar implementations, Plava Laguna’s experience offers valuable insights. By automating repetitive tasks, teams can devote more time to refining their business strategies, ultimately driving growth and profitability.

Plava Laguna’s journey with IDeaS and PHOBS highlights the importance of choosing reputable partners and fostering close working relationships to achieve successful technological integration and business transformation.