Josh Ramsey, SSP’s Hotel Revenue Performance Industry Expert, is trusted as an expert in revenue management and hotel performance for top management companies in the US.
He is the Founder and Managing Partner of Prosper Hotels — one of SSP’s Strategic Alliances — providing commercial-level revenue support through revenue management, analytics, performance marketing, and group housing. See his expertise in action below!
Situation: Untapped Areas of Opportunity for Revenue Growth
Prosper Hotels, SSP’s Strategic Alliance, began working with this hotel on January 6, 2021 to demonstrate how their experience, strategy, and skill can improve an already well-performing hotel.
As a result, RevPAR increased by $12.97, and multiple opportunities for increased revenue were found.
Strategy: Capitalizing on Special Events
Prosper’s laser focus on high-demand events created new opportunities for retail-tied revenue growth. When comparing the week of President’s Day with MLK Day (the most recent event prior to Prosper’s intervention), the hotel performed 22% better.
— Source: Strategic Solution Partners
On top of the success of effectively utilizing high-demand events, new opportunities were identified including:
New Corporate Business: +20 Potential leads offered for new local business accounts
Expedia Accelerator: +$2,400 /mo in additional revenue
Expedia 2+ night Promotions: +$1,263 /mo in additional revenue
Results: Overall ADR Performance Improved $14
To maximize pricing performance, a measured approach was taken to increase retail rates and premium rooms to improve the hotel’s overall ADR.
Increasing retail rates by $5 per week, while continuing to closely monitor price elasticity, resulted in new pricing $15 higher than before, which accounted for an extra $3,590 /mo.
After only one month of increasing Junior Suite and Studio Premium Room pricing by $5, there was an improvement on these room types amounting to +$595 /mo.
After just 28 days, RevPAR increased from $51.89 to $64.86, and by March 2021, ADR had increased by $20 since December.
Are you looking for similar results for your hotel? Get in touch with our Revenue Management Industry Experts here.
About Strategic Solution Partners
Strategic Solution Partners (SSP) is an integrated hospitality solutions provider with a proven track record of success in hospitality task force and consulting. SSP has the experience, expertise, and staffing necessary to find the best-fit solution for any situation and has done so for nearly 1000 hotels to date.
