We are the hotel with the best rates in our market segment in Bremen – not only occupancy rates, but also our Average Daily Rate (ADR). By using the IDeaS RMS, we have become more profitable. From 2010 to 2011, we were able to increase our ADR by 5 per cent – a great result.”
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.
“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.”
“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…
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.
“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.