RoomPriceGenie, a provider of revenue management systems (RMS) for independent hotels and groups, is proud to announce the impressive results from an in-depth, 700-day study of 567 hotel clients worldwide, which demonstrates the ROI earned by each property as a result of implementing the company’s RMS. During the study period, participating hotels experienced:
- An average revenue increase of 19% across 567 properties in various markets worldwide.
- ADR and occupancy improve together. With a 4% increase in ADR and a 14% boost in occupancy, properties benefit from higher rates and more booked nights.
- Importantly, the study showed that thehotels’ room count had no significant impact on revenue, ADR or occupancy gains experienced.
This study conclusively showed the RoomPriceGenie RMS helps hotels increase room rates while driving higher occupancy and significantly increasing overall revenue. The consistency and significant nature of the gains earned by each property also demonstrates that the cost of investment in implementing the RMS will be recovered quickly, with financial gains increasing exponentially over time – no matter the type or size of hotel, or how the market changes.
As well as boosting bookings and revenue, the study also proved the RoomPriceGenie RMS helps hoteliersplan and execute their revenue management strategy significantly more quickly than before.
Lucas Roth, Owner at Raincity Property Group said: “Instead of spending 10 hours every month going over the pricing for the upcoming months, we can now complete it in about 15 minutes.”
Kiki Shahabi, Manager at Steiner Residences agreed: “What used to take days to several weeks to do is now possible in a single day.”
“Revenue management isn’t just about increasing prices; it’s about finding the sweet spot where occupancy, rates, and guest satisfaction align perfectly,” said Chas Scarantino, CEO at RoomPriceGenie. “While many hotels are initially wary of implementing dynamic pricing, this study shows that automating your pricing is the only way for hotels to create and maintain that integral balance, without losing control over their pricing or dissuading guests from booking with their property. As only approx. 10% of hoteliers currently use a dedicated RMS for managing their pricing, the RoomPriceGenie RMS is a proven way for ALL hotels to perform more competitively and maximize their overall profitability.”
Methodology
The study examined the data from 567 properties from nine countries: Australia, the Czech Republic, Germany, the Netherlands, New Zealand, Spain, Switzerland, the United Kingdom and the United States.
The study included comparing each property’s performance to the Same Time Last Year (STLY) to track improvements at 567 properties in different markets and with different sizes and types, all using the RoomPriceGenie with AutoPilot feature, which automates pricing calculations and updates. The study examined each property’s core revenue metrics – total revenue, ADR (Average Daily Rate), and occupancy rates – for up to 700 days.
