Hotel Villa Magdalena in Krapinske Toplice ( www.villa-magdalena.net ) is a multi-awarded hotel in Croatia, and over the past few years (with the exception of 2020), they have continuously achieved above-average capacity occupancy results – up to 77.50% on a yearly basis with also above the average room rate (ADR) for continental hotels. The hotel operates all year round with minor differences in demand between months.
The hotel has been using the WebBookingPro Booking engine and Channel manager for 10 years, and recently has been actively using Revenue Manager, with which it automates prices daily based on mathematical estimates of demand and current occupancy. The hotel achieves an above-average number of direct reservations, which is primarily due to the Booking engine, but recently also to the Revenue Manager.
Revenue Managers have always been expensive applications and we mostly tied them to larger hotels, resorts and chains. The use of revenue managers in smaller facilities is still very rare today. Of course, smaller facilities of private owners generally have a lower level of digitization and automation, and unfortunately some of them still see every technological solution as a cost. But more and more owners and hotel managers understand the necessity of digitization and automation – with the ultimate goal of increasing revenue – the possibility of additional income, the effect of saving on human labor resources, reducing errors and generally reducing manual work greatly outweighs the cost of introducing technology.
There are various Revenue Managers, some extremely advanced, but perhaps too complicated for small and medium-sized facilities. Therefore, WebBookingPro’s Revenue Manager is something that offers a new approach – a simple and fast way to define goals, rules with the ultimate goal of increasing total revenue! We all look at increasing occupancy, but ultimately revenues and EBITDA are more important than occupancy and overnight stays. Revenue manager can increase both overnight stays and occupancy, but maybe if you arrange it smartly you can achieve better average prices, similar or lower occupancy (which reduces costs) and significantly better income.
How is this achieved?
Rules are simply created with which you set how the price is adjusted higher or lower for a certain target period, the next period, certain days of the week, certain types of accommodation units depending on various conditions – occupancy of the type of accommodation unit per day, total hotel occupancy, estimation of demand for the day based on various parameters.
For example, one of the strategies is to set a policy that when the occupancy rate is low, the prices will drop proportionally, for example by 15%, so as the occupancy rate increases, the price will rise. One strategy is to raise the price, for example by 10% fixed or proportionally, after some occupancy. One strategy is to adjust the price based on demand as well. But strategies (rules) can also be combined so that they either add up or multiply, and this all leads to the fact that with smart automation you can create higher revenues – sell better when there is demand and a well-founded expectation of higher occupancy, sell at a slightly lower price when it is very bad demand and perhaps create an additional reservation that would otherwise not exist.
This is linked to the WebBookingPro Channel Manager, which with its advanced price list mapping methods – where each price list on each channel can have conditions corrected in relation to the Standard price list which is then corrected by the Revenue Manager, where each room can have its own limits on the number of available units, where each the room can have “unavailable” units until a certain day before checkin and many other advanced functions.
Contact us for an offer – we cooperate with PMS/HIS applications, we do free system setup for you, filling with initial data (price list), we “import” existing OTA reservations to make the transition as painless as possible, we educate you for support, we are available 24 hours a day through all channels – email, phone, Wacapp.
Contact us at info@webbookingpro.com .
