How Price Optimization Helped Yasuragi Increase its RGI by 47% During the Pandemic

REVENUE MANAGEMENT

How Price Optimization Helped Yasuragi Increase its RGI by 47% During the Pandemic

Yasuragi, part of Nordic Hotels & Resorts is one of Atomize’s most iconic customers. The Yasuragi – Japanese Spa- and Conference Hotel, is a unique Spa and Conference Hotel built with an exclusive Japanese lifestyle located outside Stockholm. Yasuragi With the use of Atomize RMS, Yasuragi has taken their tactical pricing to a new level based on automated dynamic room pricing and the possibility to better capitalize on future demand with the right rates and offers. It has helped them increase their revenues and improva margin.

Why it matters: In this case study, we will share the story of how the use of Atomize has helped Yasuragi adopt new and improved ways of handling their price optimization and increase their RGI, hence their market share by 47,3% during the pandemic.

The big difference prior to how Yasuragi used to handle their pricing, is that with the use of Atomize RMS, Yasuragi has the advantage of being one step ahead of their competitors. Prior to Atomize, Charlotte Thulin, the RM at Yasuragi would manually adjust rates upwards on days when they experienced a high demand through a rising number of reservations – but the manual approach meant they were acting “too late” and missed revenue opportunities. With the use of Atomize, the system picks up the booking intentions and indications of high demand before the reservations happen – and results in more bookings at higher rates. Atomize sets prices 365 days into the future and adjusts prices dynamically, per room type. Atomize also ensures the optimal combination of room prices across all room types in order to maximize Yasuragi’s total room revenue. By implementing Atomize in the operation, Yasuragi has created a much more efficient and streamlined operation. With the use of Atomize, Yasuragi has had the best conditions to capitalize on the market demand. Without Atomize, Charlotte doesn’t believe they would have been able to improve their RevPAR and ADR as they have managed to do.

Top 3 Core Objectives: By implementing Atomize RMS, Yasuragi wanted to be able to be more proactive in their pricing by changing prices as a response to indications of changing market demand. They wanted to be able to adjust rates longer into the future and faster than the competition to capture more revenue opportunities and in addition, to that save many hours of manual work by moving to price automation.

Respond to changing demand: By implementing Atomize RMS, Yasuragi wanted to be able to instantly respond to indications of changing market demand to capture more revenue opportunities.
One step ahead: Yasuragi wanted to be more proactive with their pricing and monitor dates with indications of high demand, to be able to adjust room rates before the booking actually takes place.
Price per room type: Yasuragi wanted a solution that could optimize each room type individually to ensure the optimal combination of room prices across all room types in order to maximize total room revenue.

Innovators Mentioned

Yasuragi

Atomize

Charlotte Thulin

Revenue Manager at Yasuragi

Yasuragi

"Atomize has helped us to improve ADR and room revenue and avoid any price wars with our comp set. Atomize has managed to instantly pick up on changing market demand and the algorithm has increased the rates accordingly which has led to growing ADR and a RevPAR up to 2,5 times better compared to the market."

Charlotte Thulin

Revenue Manager at Yasuragi

👍 Revenue Manager at Yasuragi Charlotte Thulin said that With the help of Atomize, Yasuragi has managed to grow its ADR and RevPAR up to 2,5 times better compared to the market.:

"Atomize has helped us to improve ADR and room revenue and avoid any price wars with our comp set. Atomize has managed to instantly pick up on changing market demand and the algorithm has increased the rates accordingly which has led to growing ADR and a RevPAR up to 2,5 times better compared to the market."

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

Revenue Manager at Yasuragi Charlotte Thulin said, about their decision: "We really liked the fact that Atomize detects changes in market demand and instantly adapts prices to them in real time."

📈 The results: With the help of Atomize, Yasuragi has increased its market share tremendously in relation to its competition and has saved several man-hours per week by implementing price automation.

Looking at RGI - showing Yasuragis RevPAR in relation to the competitors' RevPAR – Yasuragi has performed much better than the market by increasing its RGI by 47.3 % during the pandemic.
With the use of Atomize, Yasuragi has increased the efficiency in setting and managing their prices, what used to take approx 3-4 hours per week is down to only a couple of minutes per day.
Yasuragi can with the use of Atomize capture revenue opportunities 365 days into the future instead of 30 days which they managed prior to Atomize.