AI Breakthrough and Human Expertise Propel a Stunning 30% RevPAR Surge at Palacio Ramalhete, Lisbon, in Record Time

REVENUE MANAGEMENT

AI Breakthrough and Human Expertise Propel a Stunning 30% RevPAR Surge at Palacio Ramalhete, Lisbon, in Record Time

Palácio do Ramalhete, an urban palace nestled in Lisbon's vibrant Alcântara neighborhood, boasts a rich history dating back to the 17th century and remarkably withstood the devastating 1755 earthquake. Its 16 spacious and uniquely designed rooms and suites transport guests back to Portugal's golden era, earning features in prestigious publications like Conde Nast and The Times. Seeking to unlock the full potential of this historic gem, the owners were also focusing on its charming sister property, Casa Holstein, located in the picturesque town of Sintra.

Why it matters: Despite its immense potential, Palácio do Ramalhete faced low occupancy during the off-season and underwhelming ADR (Average Daily Rate) during the high season (April to October). In a city as dynamic as Lisbon, the property needed to optimize pricing in response to fluctuating demand through automation, saving valuable time. Additionally, they required robust support for operational tasks related to distribution, such as adjusting sales conditions, refining content, and optimizing OTA profiles. Given its ideal setting for weddings and banquets, the property also needed to maximize this segment without undermining its OTA revenue. Casa Holstein, their sister property in Sintra, faced similar challenges. Recognizing these needs, the owners turned to the Franco Grasso Revenue Team, whose expertise aligned perfectly with their goals.

The collaboration with the seasoned revenue managers of the Franco Grasso Revenue Team enabled the property to adopt a more dynamic pricing strategy, effectively capitalizing on the latent demand generated by Lisbon's attractions during the low season. This partnership also enhanced online visibility, increased ADR during the high season, and seamlessly integrated the wedding and banquet segment with the OTA channels.

Top 3 Core Objectives: Palácio Ramalhete and its sister property aimed to capture maximum demand during the low season to maintain profitability, while also seizing high-season opportunities to drive incremental revenue. This approach would enable them to reinvest and enhance their already stunning offerings.

Increase occupancy: Palácio Ramalhete sought expert guidance to fully realize its potential, even during the low season, by leveraging its prime location, luxurious amenities, and historic charm. The sales structure was streamlined by simplifying rate plans and eliminating those that caused guest confusion, which significantly improved conversion rates on OTAs. Tailor-made low-season promotions and optimized online content further increased the property's visibility, allowing it to stand out from competitors by showcasing its unique selling points and capturing a larger market share. Additionally, a well-crafted pricing strategy was introduced to highlight lead-in room categories and offer upgrades/upselling during the low season. This approach led to a dramatic increase in occupancy, even during the colder winter months when weather and the absence of major events typically posed challenges.
Improve brand reputation: Online reputation is always crucial. The hotel sought expert advice on enhancing its presence on online channels to increase visibility. Implementing some strategic tips and tricks at the front desk significantly improved the property's online ratings and boosted the volume of reviews. This, in turn, helped increase occupancy during the low season and allowed the hotel to command impressive rates during the high season.
Improve ADR: Given Lisbon's strong appeal from April to October, it was evident that the property had untapped potential, with rates falling below what the market was willing to pay for such a unique product in an excellent location. The expert guidance of the Franco Grasso Revenue Team, combined with regular, detailed reporting—accompanied by clear explanations from their team—and the automated AI-driven pricing optimization of their Revolution Plus software, enabled the property to achieve stellar rates during the high season by capitalizing on the city’s events and attractions. Profitability through online channels was enhanced by discontinuing unprofitable OTAs and focusing on those that generated year-round reservations at the highest ADR. This strategic requalification, along with improved pricing strategies, also ensured more accurate quotations for offline segments such as weddings and banquets, resulting in significantly higher revenue than in the past.

Innovators Mentioned

Palacio Ramalhete

Franco Grasso Revenue Team

Nuno Araujo

Operations Manager

Palacio Ramalhete

"The collaboration experience was exceptional, marked by prompt interactions with the designated contact person. The Revolution Plus system, despite the complexities of artificial intelligence and machine learning, was notably user-friendly for beginners. The team's guidance was invaluable, ensuring a smooth and efficient process. Communication throughout was consistently effective and courteous, greatly enhancing the overall experience."

Nuno Araujo

Operations Manager

👍 Operations Manager Nuno Araujo said that The transition to working with Franco Grasso's team and their AI system has been seamless. The team ensures swift communication and effective problem-solving, working closely with the hotel to achieve excellent results. Their assistance and response times have been outstanding. We look forward to further collaboration and continued growth with their support.:

"The collaboration experience was exceptional, marked by prompt interactions with the designated contact person. The Revolution Plus system, despite the complexities of artificial intelligence and machine learning, was notably user-friendly for beginners. The team's guidance was invaluable, ensuring a smooth and efficient process. Communication throughout was consistently effective and courteous, greatly enhancing the overall experience."

⚖️ The selection process: During their research process, Nuno Araujo evaluated Franco Grasso Revenue Team's product differentiators, customer support, and holistic value as a strategic partner and ultimately decided that Franco Grasso Revenue Team was the best fit solution:

Operations Manager Nuno Araujo said, about their decision: "We have two properties that are working with Franco Grasso's team and in a few months you can see the result and immediate improvement. From the beginning we were professionally advised by their team and thanks to the implementation we have had improved results in all aspects of Revenue Management (ADR, REVPAR, ROOM REVENUE). Highly recommended, even for small properties like ours."

📈 The results: The Franco Grasso Revenue Team swiftly transformed Palacio Ramalhete and Casa Holstein with comprehensive revenue management strategies, implemented within just two weeks. This led to a remarkable increase in RevPAR and a significant enhancement in brand reputation.

The properties surpassed 50% occupancy during the challenging low season months, enabling the properties to achieve a positive GOP (gross operating profit) in periods that typically resulted in financial losses.
The properties increased RevPAR by an average of 30% during the low season months and 15% during the high season months.
The properties boosted the volume of reviews by 20% compared to the same period last year, leading to a consistent improvement in OTA rankings and conversion scores.