BEONx HQI™ Empowers Hotelatelier to Outperform Competitors with Targeted Pricing Strategy

REVENUE MANAGEMENT

BEONx HQI™ Empowers Hotelatelier to Outperform Competitors with Targeted Pricing Strategy

In 2018, Hotelatelier Group, a hotel management company, re-launched three of their properties in Madrid and Barcelona under the newly created Icon brand. This re-branding was accompanied by a change in target group, a new competitive set, and the goal to establish the new brand long-term. In order to achieve this, the revenue management team had to analyze their new offer compared to the competition and understand exactly what their target group would be willing to pay for the quality they offer. Matching guests’ expectations of quality with price was perceived to be one of the keys for creating a sustainable base of loyal guests. This is where BEONx, a revenue management system, came into the picture. With the implementation of BEONx, Hotelatelier's revenue management team was able to largely rely on its Hotel Quality Index (HQI) to identify guests' willingness to pay for the quality they offer, which was crucial for correct pricing decisions and positioning properties within the marketplace. In this case study, we explore how BEONx's HQI helped Hotelatelier transform their revenue management and establish a sustainable base of loyal guests.

Why it matters: The success story of Hotelatelier's utilization of BEONx's Hotel Quality Index showcases the importance of utilizing advanced revenue management tools to identify guests' willingness to pay for the quality of the products offered by hotels. The results of the implementation demonstrate that matching guests' expectations of quality with pricing is essential for creating a sustainable base of loyal guests, which is a key factor for long-term brand establishment and profitability in the highly competitive hospitality industry.

BEONx is an intuitive, AI-powered platform that automates and simplifies revenue management for hotels, providing a holistic view of the guest journey with actionable strategies. The platform integrates all relevant data sources into one dashboard, allowing hotel revenue management teams to quickly and easily analyze information through intuitive visualizations. For Hotelatelier, BEONx provided a solution to the challenge of identifying their guests' willingness to pay for their rebranded properties in Madrid and Barcelona. The platform's Hotel Quality Index enabled the revenue management team to quantify both their own and their competitors' quality, combining this data with pricing information to make pricing decisions that aligned with guests' expectations of quality. As a result, Hotelatelier was able to correctly position their properties in the marketplace and establish the new Icon brand long-term.

Top 3 Core Objectives: The implementation of BEONx technology for Hotelatelier had three key objectives. Firstly, to accurately identify guests' willingness to pay for the quality of the newly rebranded properties in Madrid and Barcelona. Secondly, to match guests' expectations of quality with price, and position the properties correctly within the marketplace. Finally, to empower Hotelatelier's revenue management team with deep market insights and data-driven decision-making, by utilizing BEONx's Hotel Quality Index (HQI). Achieving these objectives would enable Hotelatelier to establish a sustainable base of loyal guests and improve revenue management efficiency.

Identify willingness to pay: To accurately identify guests' willingness to pay for the quality of the newly rebranded properties in Madrid and Barcelona, in order to create a sustainable base of loyal guests.
Pricing positioning: To match guests' expectations of quality with price, by analyzing Hotelatelier's new offer compared to the competition, and position the properties correctly within the marketplace from the outset.
Data-driven decision making: To empower Hotelatelier's revenue management team with deep market insights and data-driven decision-making, by utilizing BEONx's Hotel Quality Index (HQI), which is based on objective factors plus online reputation and competitor pricing.

Innovators Mentioned

HotelAtelier

BEONx

Beatriz Crespo

Pricing Operations Manager at Hotelatelier

HotelAtelier

Reyes Mañeru

Chief Business Growth Officer in Hotelatelier

HotelAtelier

"Including the HQI™ in the RMS decisions combines demand patterns with quality data, marking a differential value with respect to other systems that do not include this variable in their decisions. For us, it has been key to take quality into account, allowing a better analysis of pricing decisions, and a better positioning within the compset."

Beatriz Crespo

Pricing Operations Manager at Hotelatelier

👍 Pricing Operations Manager at Hotelatelier Beatriz Crespo said that BEONx's Hotel Quality Index was key for market positioning:

"Including the HQI™ in the RMS decisions combines demand patterns with quality data, marking a differential value with respect to other systems that do not include this variable in their decisions. For us, it has been key to take quality into account, allowing a better analysis of pricing decisions, and a better positioning within the compset."

⚖️ The selection process: During their research process, Reyes Mañeru also researched IDeaS, and ultimately decided BEONx was the best fit for them.

Chief Business Growth Officer in Hotelatelier Reyes Mañeru said, about their decision: "Matching guests' expectations of quality with price was perceived to be one of the keys for creating a sustainable base of loyal guests. The Hotel Quality Index, which is based on objective factors plus online reputation, allowed us to quantify not only our own quality, but also our competitors' quality. This deeper insight into the market ensures pricing decisions coincide with guests' expectations of quality. This fair price identity will be one of the cornerstones to successfully establish the ICON brand long-term"

📈 The results: Hotelatelier was able to successfully rebrand three of their hotels in Madrid and Barcelona under the newly created Icon brand, with the help of BEONx's Hotel Quality Index (HQI). By utilizing the HQI, Hotelatelier's revenue management team accurately identified guests' willingness to pay for the quality of the new products, matched guests' expectations of quality with price, and correctly positioned the properties

BEONx's Hotel Quality Index (HQI) enabled Hotelatelier's revenue management team to quantify their own quality as well as their competitors' quality and combine it with competitors' pricing. This provided the team with deeper insights into the market, allowing them to correctly identify their target group's willingness to pay for the quality they offer.
By relying on the HQI to identify guests' willingness to pay, Hotelatelier was able to establish a pricing strategy in line with customer expectations. This ensured that guests' expectations of quality matched with the price, which helped to create a sustainable base of loyal guests.
Utilizing the HQI empowered Hotelatelier's revenue management team with deep market insights and data-driven decision-making. The team was able to analyze their new offer compared to the competition, understand exactly what their target group would be willing to pay for the quality they offer, and make more informed pricing decisions that were in line with customer expectations. This increased revenue management efficiency and helped to establish the ICON brand long-term.