Success Stories

Kempinski Hotels, Europe’s oldest and most established luxury hotel collection, maintains a leading position in the business travel market with a portfolio reaching across Europe, the Middle East, Africa, South America and Asia. As a company that is synonymous with distinctive luxury, Kempinski strives for continued global growth in an increasingly competitive luxury segment.

The Challenge

  • Seamless integration with Kempinski’s existing hospitality technologies, such as CRS, PMS and CMS systems
  • Focus time and energy on strategic planning instead of consolidating data from multiple systems

The IDeaS Revenue Management System allows for seamless integration with Kempinski’s existing operations, including the central reservation system (CRS), property management system (PMS) and channel management system (CMS).  Additionally, IDeaS Revenue Management System interfaces with TravelClick’s RateView product incorporating RateView’s shopped competitor rates into IDeaS RMS Best Available Rate (BAR) recommendations. With visibility of the shopped rates alongside IDeaS BAR recommendations, Kempinski is able to maintain close control and have absolute confidence in the public rates they place in the market, for each length of stay requested, right up to the day of arrival.

The Solution

“With the automated revenue management system from IDeaS Revenue Solutions, we have the ability to quickly see in one screen our position in the market and efficiently set the best available rate.”

  • Group pricing functionality
  • Multi-property view
  • PMS and CRS decision upload integration
  • Custom reporting

With the IDeaS Revenue Management System’s core functionality to accurately and efficiently forecast the market and the business intelligence available through the system, Kempinski can extend intelligence to various departments, especially to sales and marketing, for example, warning of anticipated challenges.

Through simple reporting across the organization, they can clearly communicate information about certain months they may be underperforming and immediately put programs in place to correct the situation for the upcoming period.

IDeaS Revenue Management System allows the Kempinski revenue management team to spend more time focusing on long-range issues because of their confidence in the system’s accuracy. Today, they’re sending rates to market in 3.3 seconds and tackling new goals every day because they have the time to be strategic.

The Results

“The growth and revenue boost we’ve seen in is a fantastic benchmark for what we hope to achieve worldwide with the help of IDeaS Revenue Management System.”

  • Average room rate increased 22% year on year
  • $4 million in increase in revenue
  • 28% growth in ADR

Kempinski has enjoyed great returns on investment since installing IDeaS Revenue Management System. For example, through the use of IDeaS Best Available Rate module and pricing review, Kempinski’s Hotel Baltschug in Moscow has increased its average room rate 22 percent year on year, with no discernable impact on occupancy. This has equated to more than US$ 4 million increase in revenue for the year. In Dubai, Kempinski’s Mall of the Emirates enjoyed a 28 percent growth in ADR following a pricing review, and enhanced use of IDeaS’ Revenue Management System.

Supporting Materials