Dynamic prices in the Romantik Hotel: How revenue management leads to success 

 

The Romantik Hotel am Brühl is located between Berlin and Leipzig in the picturesque film town of Quedlinburg. The hotel has 48 rooms with 94 beds and has 40 employees. The main clientele of the hotel is holiday and conference guests, the length of stay this year is 1-4 nights on average. One focus of the Romantik Hotel is the culinary art. "Fine dining" is very important to the hosts and so the restaurant in the historic villa "Le Mariage" has found a suitable place. A family working atmosphere is the top priority, which is why there were no employee layoffs even during the corona pandemic.

 

In the daily operations the hotel uses the hotel software Guestline, the channel manager HNS and the MarTech tool myhotelshop. Well-known online booking portals such as Booking, HRS and Kurzurlaub.de are also used.

The OTAs used are important for the visibility and profitability of the house, but they take a lot of work and cost money, according to Wiese. It is therefore all the more important to pick up the guest directly via the hotel website with convincing prices. For 8 years now, software with dynamic prices has been used instead of a fixed room price model. The Romantik Hotel partnered with a different RMS before using RateBoard, which did not convince in terms of performance and therefore the search was made for a more functional revenue management tool and they found it in RateBoard. 

 

RateBoard's analysis functions are particularly valuable for Mr. Wiese. This gives a good overview of what is happening in the market. The great advantage is that the system is available anytime and anywhere and benefits of even greater efficiency and added value the longer it is in use, says the hotelier. As part of the intelligent algorithm, the system adapts to the circumstances at all times and thus always provides the best price suggestions.

 

Mr. Wiese notes that booking behaviour of guests has changed significantly in recent times. Previously, bookings were made four to six weeks before arrival at the Romantik Hotel am Brühl. The RateBoard software helps react to the changed booking behavior on short notice. Depending on the demand, the system suggests suitable prices, which can be checked and adjusted in advance. These functions support the hotelier to continue to run his business successfully. Functions such as the reputation and competition analysis give the hotelier Mr. Wiese a good overview so that he can continue to increase the numbers of his business and remain successful in the future.

 

The Romantik Hotel am Brühl has been able to visibly improve its performance figures since working with RateBoard. The average daily rate per room (ADR) was increased by 8.8% from 2021 to 2022. Revenue and revenue per available room (RevPar) increased even more significantly in the same period, each by 33%. With the right RMS, which automatically delivers the optimal price per room every day, the hotel was able to react well to the changing demand situation even in times of crisis.