The Rainmaker brings LRO solution to Asia
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Singapore - Oct 27, 2009 (TravMedia.com) - The Rainmaker Group, the world leader in automated revenue management software and services to the apartment and casino hotel industries for total property profitability, announced it is introducing its LRO (Lease Rent Options) lease/rent optimization solution to operators & owners of Serviced Apartments, Branded Residences and Rental Properties that include Office & Retail space in Asia Pacific. LRO is the most widely installed revenue management system for rental properties. It optimizes pricing for over 500,000 rental units and is delivering lease rent lifts for many of the largest private and public companies.
“LRO has demonstrated its value to operators in the North America market with clients seeing incremental revenue lift of 3-6% percent after implementing the software.” said Bruce Barfield, President of The Rainmaker Group. “The volatility in the real estate market demonstrates the importance of improving asset profitability with optimized rental/lease pricing. We see similar signs in Asia where in the last 18 months increased competition and volatility underscore the importance of optimizing asset profitability through sophisticated, effective pricing and revenue management automation.”
LRO maintains a disciplined, optimized approach to rate and rental setting by basing pricing on detailed analysis of a much greater number of market data points and demand influences than are possible manually. Pricing factors analyzed by LRO include the occupancy levels of each unit type, lease expiration trends, seasonal effects, competitive pricing, and other local market conditions particular to each property. “Optimal pricing is essential to success in this industry,” said Barfield. LRO by Rainmaker is the most widely installed apartment / rental property revenue management system with a total of 29 companies using the system to optimize lease-rents.
“There is a history of successful hotel revenue management in the Asia Pacific region, but this is relatively new in the serviced apartment / rental property arena,” said Vivek Bhalla, Managing Director - Asia Pacific of The Rainmaker Group. “There is a vast difference in the approach to revenue management in the hotel sector and in the apartment arena. This stems from the fact that the length of stay for apartments and rental properties is much longer relative to hotels. When the average length of stay runs from 6 months to 2 years, setting the optimal rental price is essential to driving asset value.” In the hotel business, rates can be adjusted every 1.8 nights for many market segments, so the margin for error is much larger than in the apartment space. There is also an immense difference in forecasting within the two sectors.
“The complexity of forecasting accuracy is much more in the apartment business as there are very limited data points with guests staying for longer durations and there is limited inventory turnover.” added Bhalla. “We recently participated in the Serviced Apartment Asia conference and received significant interest in LRO amongst the various apartment operators and property management companies.”
Rainmaker’s LRO software is designed to address the unique issues of the apartment industry. The system is used by Archstone, Equity Residential, Babcock and Brown Residential, Colonial Properties Trust and other successful operators.
About The Rainmaker Group:
The Rainmaker Group (www.letitrain.com) is a Microsoft certified gold partner and provider of the LRO (Lease Rent Options) price optimization solution that enables serviced apartments operators / property management firms to maximize revenue from leases. LRO lease rate improvement results have been reviewed and validated by independent accounting firms. For more than six years, revolution LRO has delivered optimized leasing rates to the largest operators, including Archstone-Smith, Equity Residential, Babcock and Brown Residential Post Properties, Simpson Housing, Mid-America Apartment Communities and a number of other leading serviced apartments/multifamily housing companies.
The Rainmaker Group also provides revenue management for more than 80,000 rooms in the gaming hospitality industry. Rainmaker implements and supports the revolution product suite, which maximizes total property profitability for operators of casino hotels and other hospitality enterprises. The company enables clients to identify and maintain availability for their most profitable revenue sources through revenue management implementations. Hospitality clients include Boyd Gaming, Harrah’s Entertainment, MGM MIRAGE, Trump Entertainment Resorts, Omni hotels and other leading casino and hotel companies. The Rainmaker Group has offices in Las Vegas, Atlanta and Singapore
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