In Brief: The Colton House Hotel has effectively utilized revenue management techniques, resulting in significant success and setting a precedent for the sector.
Last year was not a great year for the market of Austin, Texas according to CoStar data. The rolling 12 month revPAR change was -6.10% year over year. Our client, the Colton House Hotel, however fared much better.
Understanding that there are multiple factors that go into hotel performance, it is important to us at Rate Yield to back out market performance when evaluating the ROI of our system. In the case of the Colton House Hotel, we see that the revPAR growth of the hotel outperformed the revPAR growth in the market in all but two months. While the hotel has been using Rate Yield for multiple years, the new management company revisiting the configuration of the RMS contributed to the hotel’s exceptional performance.
Zaira Aahz, revenue manager at Columbia Hospitality had this to say about Rate Yield:
“Rate Yield’s configuration options and intuitive interface allows us to adapt our pricing strategies with precision and frequency, ensuring we remain competitive in Austin’s constantly shifting market.”
These results remind us of why we got into the business. Maintaining competitiveness and favouring hotel performance and strategy over a demand-focused approach keep our clients ahead of the game. We are excited to watch what the Colton House is able to achieve with Rate Yield and Columbia Hospitality!
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
