How We Increased Results for Like Ü Hotels by Over 300%
By using the right Revenue Management methodology, Like Ü Hotels has been able to maximize revenue, increase occupancy rates, and maintain a good level of customer loyalty.
Therefore, it is important to use both strategies: working with long-term agreements and partnerships, as well as analyzing demand fluctuations to adjust rates and maximize revenue.
Thus, the application of a combined rate methodology was the key factor for the growth in performance metrics.
Like Ü Hotels is celebrating another year of partnership with Unity Hotelaria today. Over these months, the Unity intelligence team has adopted various strategies to balance the growth of the properties.
As a result of daily revenue management work, the Unity intelligence team has managed to position itself correctly in the market, increasing revenue by over 300% and occupancy rates by 283% (measured from August 2021 to August 2022).
Making accurate decisions that drive business growth
Effective Revenue Management requires reliable data and trend information about the industry.
Adjusting rates according to market seasonality is already a common practice among hotels. However, Revenue Management goes beyond that. It involves working with different rate fluctuations and various forecasts.
Nevertheless, fluctuations are not always managed in the most appropriate manner, which directly impacts occupancy rates, average daily rates, and primarily, the establishment’s revenue, reducing margins and business profitability.
After all, finding it challenging to balance supply and demand between high and low occupancy periods is a common challenge in hospitality. However, Revenue Management was the key to ensuring a good volume of bookings throughout the year.
The methodology was applied through a combination of Fixed and Flexible Rates
The Fixed Rates consisted of commercial agreements and specific negotiations. On the other hand, Flexible Rates reflected rate fluctuations, whether for B2B or B2C clients.
To work with flexible rates, we need to consider as many variables as possible to define how to apply the methodology.
The main points to analyze are:
- Demand forecast for the period
- Current occupancy rate
- Booking date proximity
- Customer history
- Cancellation rates
- No-show rates
- RevPAR (Revenue Per Available Room) performance
- GopPAR (Gross Operating Profit Per Available Room) performance
- Competitive basket monitoring
This strategy of combining both types of rates was fundamental to ensuring the continuation of good performance results.
We know that using only Fixed Rate strategies primarily loses the opportunity to increase revenue contribution margins.
On the other hand, relying solely on Flexible Rates leads to a diminished base of loyal customers.
Discover Like Ü Hotel Brasília
We offer 144 comfortable rooms spread across 13 floors, equipped with air conditioning, minibar, TV, high-speed wireless internet, and complete bedding.
Discover Like Ü Hotel Goiânia
We offer 108 comfortable rooms spread across 11 floors, equipped with air conditioning, minibar, TV, high-speed wireless internet, and complete bedding.
