Success Stories

A prize-winning budget hotel, the prizeotel Bremen-City aims to make high-design affordable to all. In addition to the hotel in Bremen, the prizeotel brand has ambitious expansion plans, with two new hotels proposed by 2013 and a presence in all the major German cities planned by 2015.

The Challenge

“Our pricing strategy is crucial to our success - we have to watch our competitors closely, and have to keep an eye on how many reservations we get, at which process, and how fast we receive them. Based on the findings, we offer a best-price rate,” said Marco Nussbaum, Co-Founder and CEO of prizeotel Management Group. “However, all working processes, especially administrative ones, should be automated in order to have more time to help and serve the guests.”

  • Automate and streamline accurate rate forecasts
  • Forecast rates that are sensitive to competitor pricing
  • Renew focus on the customer by reducing time and resources spent on data collection, entry and analysis

The Solution

“IDeaS’ quality of analytics is world-class, and we have had excellent results by using the recommendations given by the IDeaS RMS,” said Nussbaum. “We are confident in the system’s decisions.”

IDeaS Revenue Management System (RMS) with…

  • Best Available Rate (BAR) module
  • On-site and online tailored training sessions
  • Seamless integration into legacy Property Management System (PMS) and Channel Management System (CMS)

The IDeaS Best Available Rate (BAR) Pricing Module is particularly important for the team at prizeotel Bremen-City. The module, using forecasts and a calculation of Price-Elasticity of Demand also automatically recognizes the impact of constantly changing competitor rate information, to propose optimal rates dynamically. In an increasingly competitive budget-hospitality market, the BAR Pricing Module guarantees that the hotel will have faster and better responses to the moves of their competitors. Furthermore, since all decisions are updated 3 times every day, the hotel knows that their pricing decisions are always optimized to drive the highest possible revenue. 

The Results

  • A five per cent increase in Average Daily Rate (ADR) year on year
  • Best-in-class analytics ensure accurate, automated generation of Best Available Rate (BAR) and forecasts
  • Hotel staff have more time for strategic decision-making, and renew their focus on guests and service

“Since we are happy with the results, we will definitely work with the system again. We will use IDeaS RMS for all our future prizeotel hotels,” said Nussbaum.

Supporting Materials