REVENUE MANAGEMENT

16.9% RevPAR increase

Verified case study Hotel Tech Report has reached out to hoteliers at Best Western to verify this case study.
Case study header image
Best Western Borås is a four-star hotel and has 52 rooms across five different room types. They have been a beta client to Atomize since the summer of 2017. From December 2017 they have applied 100% of Atomize price recommendations. Borås is a city in Sweden with about 100 000 inhabitants. The town has five hotels and a total capacity of over 600 rooms per night.
Why it matters: Best Western Borås (BW Borås) started using Atomize at the end of 2017 and in Q1 2018 their RevPAR increased with 16.9%.
  • The increase in RevPAR is adjusted for seasonality and considers the market trend of the city and the number of rooms that were out of order. Hence, it is a true increase that can directly be attributed to the effect of using Atomize.

Top 3 Core Objectives: To be able to automatically optimize rates and by doing so with Atomize increase RevPAR and their market share.
  • Increase RevPAR: By implementing dynamic room price settings and adjusting rates faster than the competition and in line with market demand, increase RevPAR.

  • Increase market growth: To determine the effect that Atomize has on RevPAR, it is crucial to take the development of the local market into consideration. If the RevPAR of the local market grows by 10% and the RevPAR of BW Borås also grows by 10%, then the effects of using Atomize would be zero, even though the RevPAR increased. The overall objective is to show that Atomize generates a growth above index in the local market.

Atomize

Atomize is a lean Revenue Management Software built for hoteliers that want to generate revenue and do more with less.

Innovators Mentioned

Best Western
Atomize
Janne Johansson
Hotel Tech Report reached out to Janne Johansson who verified this case study.

Owner

Best Western

"“The year-on-year growth for Q1 2018 for Best Western Borås was 18.45%, compared to 1.35% for competitors.”"

Janne Johansson

Owner

👍 Owner Janne Johansson said that Outperformed their competitor in growing market share:
  • "“The year-on-year growth for Q1 2018 for Best Western Borås was 18.45%, compared to 1.35% for competitors.”"

⚖️ The selection process: During their research process, Janne Johansson evaluated Atomize's product differentiators, customer support, and holistic value as a strategic partner and ultimately decided that Atomize was the best fit solution:
  • Owner Janne Johansson said, about their decision: "“I‘m impressed by the way Atomize has managed to generate an uplift of almost 17% in the RevPAR. That extra revenue has increased our profitability, and in addition to the financial gain it also gives us room for future investments and a good opportunity to increase the skills of our staff”"

📈 The results: The period from which we built the case study was from January 1st, 2018 to March 31st, 2018. During that period, BW Borås applied 100% of the rates that Atomize recommended and grew their RevPAR +16.9% better than the local market.
  • Atomize has generated a 16.9% true increase in RevPAR for Best Western Borås.

  • On the index scale for yearly growth, the competitors grew from 105.23 to 106.65 year on year for Q1, which is an increase of +1.35%. During the same period, BW Borås rose from 100 to 118.45, which is an increase of +18.45%.

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