The Power Of Smart Revenue Technology: Ligula Hospitality Group Increases RGI For One Of Their Brands By 20% YOY

REVENUE MANAGEMENT

The Power Of Smart Revenue Technology: Ligula Hospitality Group Increases RGI For One Of Their Brands By 20% YOY

Learn how Ligula has seized more revenue opportunities and has been growing its market share by implementing price automation and automatic pricing range from Atomize. Ligula Hospitality Group AB is a fast-growing Swedish company that owns, manages, and develops a variety of concepts and brands in the hotel and restaurant industry. Currently, Ligula’s hotel division runs over 40 properties under six brands across Sweden, Denmark and Germany.

Why it matters: In this case study, Fredrik Ternsjö, Head of Revenue, System and Distribution at Ligula Hospitality Group shares how Atomize, and one new feature, in particular, has helped his hotels seize more revenue opportunities and gain market share.

The properties of Ligula implemented Atomize RMS to drive revenue and further topline growth. The Atomize solution has managed to do so by optimizing rates 24/7/365 for all room types so that the Ligula properties can make the most of every demand shift and market trend.

Top 3 Core Objectives: Ligula was looking for an RMS that could offer price automation with the possibility to put in user control functions. In other words to seize more revenue opportunities by directing the automatic pricing range. While Atomize RMS manages all day-to-day rate adjustments 24/7 and 365 days into the future, revenue managers can always step in and make changes and create a better balance between full automation and manual updates.

Increase efficiency: Ligula has managed to save a lot of time by implementing automated price adjustments and removing the tedious task of manual price setting.
Maximize revenue with input: Ligula can influence the pricing range for a specific day or period ahead of that stay date’s pick-up window. Once they enter that arrival date’s booking window, the user can rely on the system to make pricing recommendations within the minimum and maximum prices they specified. This gives Ligula more chances to maximize their properties’ revenue by guiding the algorithm but without restricting it too much. If we believe that we’re heading into a day or period with a certain amount of demand, we can influence the RMS in that direction. And if the actual demand is higher or lower than what we anticipated, the system has the flexibility to pick optimal rates within that range rather than being forced to stick with a pre-set price.

Innovators Mentioned

Ligula Hospitality Group

Atomize

Fredrik Ternsjö

Head of Revenue, System and Distribution

Ligula Hospitality Group

"“With the Min/Max option, I no longer have to lock the system into a fixed price through a manual override. Instead, I give it a new range to operate in. So, if I believe that we’re heading into a day or period with a certain amount of demand, I can influence the RMS in that direction. And if the actual demand is higher or lower than what I anticipated, the system has the flexibility to pick optimal rates within that range rather than being forced to stick with a price I set. That way we now capture revenue opportunities that we would have missed in the past due to restrictive overrides.”"

Fredrik Ternsjö

Head of Revenue, System and Distribution

👍 Head of Revenue, System and Distribution Fredrik Ternsjö said that Ligula have seen impressive results from the Min and Max feature which allows users to impose custom rate floors and ceilings for selected dates and room types even when the system is running on full autopilot.:

"“With the Min/Max option, I no longer have to lock the system into a fixed price through a manual override. Instead, I give it a new range to operate in. So, if I believe that we’re heading into a day or period with a certain amount of demand, I can influence the RMS in that direction. And if the actual demand is higher or lower than what I anticipated, the system has the flexibility to pick optimal rates within that range rather than being forced to stick with a price I set. That way we now capture revenue opportunities that we would have missed in the past due to restrictive overrides.”"

⚖️ The selection process: During their research process, Fredrik Ternsjö also researched FLYR Hospitality, and ultimately decided Atomize was the best fit for them.

Head of Revenue, System and Distribution Fredrik Ternsjö said, about their decision: "“In the two months we’ve been using the Min/Max setting, we’ve seen amazing growth in market share. The RGI of one of our brands has grown by 20% compared to the same time last year. While I know that not all of this can be attributed to this single new feature, I’m sure it played a role in this development. In any case, I’ll continue using it because it provides an extra option to fine-tune our pricing and improve our topline.”"

📈 The results: Ligula has seen amazing growth in market share. The RGI of one of their brands has grown by 20% compared to the same time last year.

Growth in market share Ligula has already seen some impressive results and especially in the latest months where they have seen amazing growth in market share. The RGI of one of our Ligulas brands has grown by 20% compared to the same time last year. Even if it can not be attributed 100 % to Atomize, it has definitely played a big role in this development.