Over the last 44 years, the family-run Lindner Hotels AG has grown into one of Germany’s leading hotel groups. Operating across seven European countries, the innovative company employs over 2,000 people in 37 hotels. Their expansive brand base—which ranges from contemporary hotels in metropolitan areas to high-class spa and sports resorts—generates annual revenues of €190m.
A second-generation leader, Chief Executive Officer Otto Lindner has won peer admiration and coveted industry awards for pioneering new hotel concepts, most notably Hamburg’s first-ever zoo-themed hotel, Lindner Park-Hotel Hagenbeck.
In October of 2016, as part of its expansion strategy, Lindner launched their ‘me and all’ brand with a brand-new hotel in its hometown of Dusseldorf. Me and all hotels is Lindner’s new ‘bleisure’ boutique hotel brand for central city locations. With their urban, casual and informal flair, these hotels appeal to city and business travellers who want to combine business and pleasure in a friendly atmosphere. The pipeline also includes additional venues projected to open in Mainz, Hannover, Kiel and Dusseldorf in 2018 and 2019.
However, the launch of ‘me and all’ challenged Lindner with a difficult situation experienced industry wide: Without any historical data, how could the hotel group accurately forecast demand and set prices for their new hotels?
As an existing client of IDeaS Revenue Solutions, they were pleased to discover the solution was already at their fingertips. With IDeaS G3 Revenue Management System (IDeaS G3 RMS) already rolled out across its entire estate, the company was able to leverage its Limited Data Build functionality. By using estimates and cloned data from existing hotels with similar business mixes, they used the combined data to quickly generate forecasts with IDeaS G3 RMS. The forecasts provided expected demand levels and guest behaviours from day one of operation. This allowed Lindner to not only establish their optimal rates, but also enjoy an immediate return on their investment.
“Me and all’ is a completely new brand, so we were starting with an almost blank sheet of paper,” shared Monika Sand, Corporate Manager Revenue at Lindner Hotels AG. “Normally, we rely heavily on a hotel’s historical market data besides examining the public price points of other hotels to get a feel for the market. On this occasion, however, there was a bigger knowledge gap to fill. “
The proof is in the numbers: The hotel’s first-half year performance exceeded budgeted forecasts, RevPAR is 14% higher than anticipated and ADR is 15% stronger than predicted.
“It’s a very competitive marketplace for hotel groups expanding their portfolios with new construction and the acquisition of properties. Up until now, one of the biggest problems has been forecasting how a new business will unfold. Our experience using IDeaS’ Limited Data Build has been extremely positive, and it helps solve an industry-wide problem.”