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REVENUE MANAGEMENT
OpenSpace Drives 51% Increase in RevPP for Atrium Hotel Mainz
Verified case study
Hotel Tech Report has reached out to hoteliers at Atrium Hotel Mainz to verify this case study.
The Atrium Hotel Mainz comprises 150 rooms, a conference area with 22 conference rooms, and 1365 m² of event space. Meetings, groups, and events have been a focus of the hotel for many years.
Why it matters:
The Atrium Hotel Mainz contracted with OpenSpace to help management react to fluctuating demand and manage revenue across the entire property.
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With 22 conference rooms, and 1365 m² of event space, meetings, groups, and events formed an important part of revenue for the hotel, but leadership could see this could be optimized further.
Top 3 Core Objectives:
Before OpenSpace, conference capacities were handled via traditional sales channels, there were only three price levels, and quotations were handled manually. The aim was to centralize this and make events part of the total revenue management of the hotel.
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Increase revenue: The hotel was looking to fluctuate daily rates on event space in line with demand, to capture a higher willingness to pay on high-demand periods.
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Optimize space usage: The Atrium Hotel Mainz wanted to be able to price each event individually, to optimize revenue per available square meter.
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Automate booking process: The hotel wanted to speed up the quotation process and allow customers to find out about prices and capacity via the website so that they could book direct.
Innovators Mentioned
Atrium Hotel Mainz
Duetto
LF
Lutz Frey
Hotel Tech Report reached out to Lutz Frey who verified this case study.
General Manager
Atrium Hotel Mainz
"By automating the booking process and also creating quotations automatically, the hotel was able to speed up the quotation process while at the same time increasing the individualization of the price calculation."
Lutz Frey
General Manager
👍 General Manager
Lutz Frey
said that personalized pricing and a quick response time for quotes were important to the hotel.:
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"By automating the booking process and also creating quotations automatically, the hotel was able to speed up the quotation process while at the same time increasing the individualization of the price calculation."
⚖️ The selection process:
During their research process, Lutz Frey
evaluated Duetto's product differentiators, customer support, and holistic value as a strategic partner and ultimately decided that Duetto was the best fit solution:
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General Manager Lutz Frey said, about their decision: "Our younger employees are very grateful to be working with intuitive, modern software. Selling with OpenSpace makes working in the events office more attractive in terms of content because the administrative work is done quickly and the role of host and consultant at the events is once again in the foreground. I am particularly pleased that this feedback has also come from my long-standing employees."
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The results:
OpenSpace had an immediate impact in terms of driving revenue, conversion rates, and customer engagement.
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OpenSpace still enabled the hotel to increase sales through flexible prices, higher conversion, and selecting more profitable events, despite a drop in demand between 2018 and 2019.
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The hotel saw a substantial increase in event revenue in May and June 2022. RevPP (revenue per person) increased by an average of 51%, despite the number of event attendees decreasing by 20%.
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Demand during this period was very strong and sporadic. The system responded successfully to this with a day-specific pricing strategy. May and June 2022 saw an average 22% increase in RevPASM (revenue per available square meter).
