MICE technology transforms Empire Riverside’s revenue management strategy

REVENUE MANAGEMENT

MICE technology transforms Empire Riverside’s revenue management strategy

Franziska Brandl, Head of Convention Sales at Empire Riverside Hotel and Hotel Hafen Hamburg discusses how OpenSpace has revolutionized Empire Riverside Hotel’s revenue management strategy and operations, increasing RevPP by 17%.

Why it matters: Empire Riverside lacked a total revenue approach when it came to their strategy.

Despite their prime location and high occupancy, they weren’t optimizing for demand, leaving profit on the table. In many cases, they would turn down high-value and last-minute RFPs, because space was already reserved up to 12 to 18 months ahead.

Top 3 Core Objectives: Before OpenSpace, demand for the hotel’s banqueting function was recorded in Excel spreadsheets, making it difficult to see trends and react to changes in the market. The team were relying on luck to get any business during low-demand periods, which coupled with their static pricing strategy, resulted in lower profitability. They wanted to flip this on its head.

Revenue per person: The hotel wanted to move away from occupancy and focus on RevPP, considering factors like room rates, event spaces, and catering, for a total revenue perspective.
Implement flexible pricing: The hotel wanted to base their pricing structure on demand and seasonality.
Automate the booking process: The hotel wanted to reduce the time spent on creating proposals, allowing staff to focus on client relationships and strategic sales efforts.

Innovators Mentioned

Empire Riverside Hotel

Duetto

Franziska Brandl

Head of Convention Sales

Empire Riverside Hotel

"Our partnership with Duetto has transformed our revenue management strategy and overall operations. By implementing dynamic pricing, focusing on total revenue, improving communication, and streamlining processes, we’ve achieved significant improvements in efficiency, staff empowerment, and most importantly, our revenue."

Franziska Brandl

Head of Convention Sales

👍 Head of Convention Sales Franziska Brandl said that Duetto's partnership has revolutionized our revenue management, boosting efficiency, empowering staff, and driving significant revenue growth.:

"Our partnership with Duetto has transformed our revenue management strategy and overall operations. By implementing dynamic pricing, focusing on total revenue, improving communication, and streamlining processes, we’ve achieved significant improvements in efficiency, staff empowerment, and most importantly, our revenue."

⚖️ The selection process: During their research process, Franziska Brandl evaluated Duetto's product differentiators, customer support, and holistic value as a strategic partner and ultimately decided that Duetto was the best fit solution:

Head of Convention Sales Franziska Brandl said, about their decision: "We had a big communication gap, with room and banquet teams operating in silos, and found manually creating event proposals in Word time-consuming, hindering the team's ability to focus on client needs and making strategic decisions."

📈 The results: By implementing dynamic pricing, focusing on total revenue, improving communication, and streamlining processes, Empire Riverside has achieved significant improvements.

Increased revenue per person (RevPP): By adopting a dynamic pricing strategy and focusing on total revenue, the hotel has seen a 17% increase in RevPP, from January to September 2024 compared to the previous year.
Improved efficiency: Streamlining the proposal process with an online booking engine saved the hotel valuable time, so they could be more responsive to client needs and focus on higher-value tasks. Customers have a better experience as they can self-serve and select dates from a calendar setup the same way they do for booking flights or hotel rooms, and see live rates.
Empowered staff: The system has given the team confidence to make data-informed decisions, leading to improved client interactions and a more proactive sales approach. The hotel is no longer accepting the first RFPs they receive and they’re not afraid to wait for profitable business.