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Challenging the Trend: How Rate Yield Clients Defied Montreal’s Market Decline – Image Credit Unsplash+
It has been a tough year for our home market of Montreal. Every STR presentation I have seen throughout the year has been saying the same thing about the city. It is underperforming all major cities across Canada and growth is negative compared to last year. This is predominantly driven by reduced occupancy.
Unfortunately, because of dependency on historical trends, reduced occupancy is interpreted as reduced demand and thereby met with conservative rate setting. The small rate increases were not enough to offset the reduced occupancy.
Rate Yield’s approach differs from legacy RMS in that we look at current market dynamics and set rates based off of market positioning, hotel priorities and hotel performance. We decided to look at the performance of our client hotels in Montreal to see how they fared in this tough year. We limited our analysis only to hotels who were live with Rate Yield throughout 2024 and 2025 to ensure that no growth could be attributed to the introduction of an RMS.
We are proud to share that our clients in Montreal have outperformed the market in revPAR growth in all but one month. The month in question, February, saw ADR growth of 7% for Rate Yield clients compared to 4.2% for the market, reflecting a desire to grow ADR over Occupancy when there is sufficient performance in the market in favour of profitability.
If Rate Yield clients revenue in 2025 was adjusted for market growth, the difference alone represents a return on investment of 33:1.
With Rate Yield you aren’t just getting an RMS to optimize pricing in real time. You are getting a team of experts and the ability to fully define and own your strategy.
Rikki Cavanagh is the Director of Business Development at Rate Yield. Connect with Rikki on LinkedIn.
About Rate Yield
Rate Yield was created in 2019 by seasoned Revenue Management consultants with over 30 years of experience within the field. Rate Yield RMS was designed to adapt to small hotels, inns, and resorts as well as large hotels in city centers. With settings and thresholds that can be modified against a hotel’s unique market trends, Rate Yield makes it more accessible than ever to implement AI in revenue management strategies. With real-time insights, agile strategy development, modules for budgets and forecasts, as well as a tool for displacement analyses, Rate Yield provides a complete software that will help your hotel to yield more revenue, period! To learn more, visit us at www.rateyield.com
