The Meritage Resort and Spa Increases RevPAR 33% and ADR 25% with IDeaS RMS

The Story

“IDeaS is like having a team of revenue managers— all with their eye on the target, 100 percent of the time,” said Genea Kearns, corporate director of revenue management, Pacific Hospitality Group. “The result is much higher RevPAR and ADR and a system that easily pays for itself within the first few months of implementation.”

Business challenge

When Kearns began working at The Meritage Resort and Spa in Napa Valley, California, she was surprised to learn that the property did not have an automated revenue management system in place. Instead, data had to be manually collected and compiled using spreadsheets, taking away hours that could have been used to analyze the data and make more strategic decisions about hotel pricing. Under this environment, revenue management processes became laborious, sluggish and susceptible to overlooked growth opportunities.

After reviewing historical STR data, it was evident the property had challenges maintaining its fair share in revenue per available room (RevPAR), and Kearns decided it was time for a change.

The perfect storm

After proposing the idea to Pacific Hospitality Group, Kearns received the green light to implement IDeaS Revenue Management System (RMS). Yielding 365 days a year, IDeaS RMS provides reliable, up-to-date market information quickly and easily so users can more accurately optimize demand and increase profits.

Amid harvest season and Napa’s huge drive-in market—in which weekends fill up but the shoulder dates don’t—having the system enabled Kearns and her team to drive higher weeknight occupancy and revenue.

“Implementing IDeaS RMS at the Meritage was really the perfect storm,” reflected Kearns. “Although we had doubled the size of the hotel, IDeaS RMS had a tremendous impact on our rates and RevPAR. Had the hotel continued its manual revenue management processes, it would not have experienced the unprecedented growth that it did.”

Higher profitability

A month after IDeaS RMS went live, year-over-year RevPAR increased 33 percent and average daily rate (ADR) increased 25 percent. Inspired by the uptick in revenue, Pacific Hospitality Group decided to implement IDeaS RMS at three additional properties in the Meritage Collection: Balboa Bay Resort, Estancia La Jolla Hotel & Spa, and Bacara Resort & Spa.

The revenue uplift we have realized from the IDeaS automated revenue management system has helped our company attract investment capital for new acquisitions.

“We are committed to the success of our properties, and IDeaS RMS has proven beneficial to this mission,” said Steve Arnold, president and chief operations officer, Pacific Hospitality Group. “The revenue uplift we have realized from the IDeaS automated revenue management system has helped our company attract investment capital for new acquisitions.”

“Already at the other properties, the system has had a positive impact on the properties’ overall rooms revenue,” added Kearns. “Moving forward, IDeaS RMS will be Pacific Hospitality’s first choice as a revenue management system at any new properties we acquire.”