Revitup Case Study Palmera Beach Hotel & Spa
ΤHE SUCCESS STORY OF PALMERA BEACH HOTEL & SPA
The global competitive environment of the hotel product in 2023
Despite the many positive messages for tourism in the previous year (2022), a fundamental problem for the Greek hotel industry (and not only) has emerged; the dependence on major TO's, who continue to control the majority of the demand. This may be altered/influenced by online visitors booking either through online booking platforms (OTAs) or through the hotel’s website. Moreover, the existing seasonality, with most Greek destinations except Athens (and some urban centers) showcasing purely seasonal demand, creates a significant problem in the annual strategic planning not only of hotels but of any tourism business.
Market challenges
Additional challenges added to this difficult landscape are several. The main ones are the rapidly ongoing digitization of tourism services as well as the need for specialized personnel which is no longer related to the service – experience of the guest but to the efficient execution of the annual internal digital management and profitability planning (Revenue Management). This novel need for specialized qualifications requires sourcing executives with knowledge of statistical research, analysis, forecasts, etc. Said knowledge is still hard to find in the tourism industry.
The digital future creates an even greater challenge for the Greek family business. It is very challenging for an organization without the corporate culture of a multinational group to create an effective sales strategy, from TO's contracts to the online plan strategy for individual visitors.
HOTEL / PARTNER / PALMERA BEACH HOTEL & SPA
Palmera Beach Hotel & Spa is a 4-star adult-friendly hotel located in Hersonissos, Crete. It features a capacity of 148 rooms and suites, offering all meal plans. The hotel operates all year round but its highest seasonality is more pronounced in the months of April – October, following the tourism seasonality of Crete. The main markets are Central Europe, Great Britain and Israel.
The Hotel’s 2019 Status & the Market Landscape
Static and Dynamic Sales:
- Lack of competitive Online presence
- High dependence on Tour Operators
- Dependence on 3 main markets – France, Germany, Netherlands
- Overselling the cheapest room type (e.g., Garden View Room)
- Structural problems in Pricing Policy
- Significant price variations in Online channels that led to low revenue
- Absence of a sales strategy on the website (direct bookings)
Our Methodology
Revitup is the first integrated service for total sales management, both (offline) contracts and (online) dynamic promotion of direct bookings. The Revitup methodology is a result of a ten-year-old experience, research and development of an integrated Revenue Management model.
The annual approach is an innovation in the tourism industry and requires a unique relationship of trust and two-way communication, depending on the needs of each entrepreneur.
With our focused and holistic approach, we manage to increase the "eyes" that browse our hotel’s website, the so-called “Lookers”, and at the same time convert them into “Bookers” through direct bookings.
A REALISTIC AND SUSTAINABLE SOLUTION DERIVES FROM DATA MANAGEMENT
REVELIER: THE ADVANCED SOFTWARE FOR COLLECTING & EDITING DATA
Revelier is our internal data collection and management tool for monitoring significant indicators in total (the so-called KPIs), as well as the overall tourist demand, in all channels (Demand).
By using Revelier, we gather and monitor data so that we:
- Track in advance the peculiarities of international markets and how they can affect sales
- Achieve balance in the Sales Mix (balance of supply & demand).
- Attain gradual financial independence from TO's.
- Establish a steady stream of revenue for the business
- Facilitate direct bookings, regulating sales through OTA's
- Control the international markets dynamically, limiting costs in Online advertising effectively
- Support and guide hoteliers to invest strategically in direct sales by building their online presence.
- Strengthen the hotel's website, establishing it as a profitable tool.
The human factor is critical. Our people collaborate with hoteliers based on the annual Revitup approach, combining technology with human contact and communication.
Revitup’s Annual Approach
Beginning our collaboration, our team proceeds to check the static contracts in parallel with the digital "setting" of the accounts and strategies for a comprehensive plan for a profitable season.
Following the above planning, everything that occurs at the hotel is forecasted, based on real-time data and dynamic adaptation. This cooperation strengthens trust with the partner and ensures a quality approach to the hotel's Revenue.
REVITUP & PALMERA BEACH HOTEL & SPA
Our collaboration with Palmera Beach Hotel & Spa began in 2020. RevitUp presented a 3-year strategic plan with clear steps and goals to improve both sales and the hotel's overall online presence.
Comparing 2019 with 2022 we conclude that:
- Total hotel revenue increased by 512%
- Website visits increased by 526%
- Availability searches increased by 4887%
- Website revenue increased by 13508%
- Google Ads revenue increased by 100%
- Facebook Ads revenue increased by 100%
- Average Daily Room Rate increased by 60%
- Absolute number of appearances to prospective customers (Impressions) increased by 401%
The following table illustrates in more detail how our 2-year cooperation has gradually improved all the important metrics:
CONVERTING LOOKERS INTO BOOKERS
WITH MINIMUM ADVERTISING SPEND!
In addition to the above figures, emphasis should also be placed on the cost of advertising. Namely, the Palmera advertising budget we spent for the 2021-2022 season amounted to 19,659 € TOTAL, a very low amount for an advertising budget, generating very satisfactory sales figures. This specific investment significantly enhanced the hotel's visibility and acted as an assistant for the website, supporting direct bookings. From the beginning of our collaboration, great emphasis was placed on increasing the hotel's Lookers, i.e., the accommodation’s exposure to as many eyes of potential customers as possible. Implementing the suitable pricing approach and promotion, we managed to translate this large increase in Lookers into an increase in Bookers, i.e., we managed to convert more eyes into more bookings..
The RevitUp proposal includes a comprehensive annual package:
- Consulting for offline contracts and full management of Online contracts.
- Affiliate team for both sales and advertising.
- Collection and processing of ALL data related to the hotel product.
- Frequent Meetings with answers to ALL partner's questions.
- Digitization of all services, with easy access and file exchange through technological tools.
In the age of information and data, we are the most reliable digital partner for the hotelier.
APPENDIX
INFOGRAPHICS
Below you will find a detailed description of how RevitUp's strategic plan improved the hotel's online presence every year.
Impressions measure the number of appearances on the screens of potential customers, making them the most important indicator of Brand Awareness.
Campaigns aimed at boosting impressions rarely bring bookings and direct income. However, they work in a way that makes our target audience familiar with our business and enters our targeting funnel.
Within two years, total Impressions have increased from 1,094,830 to 5,482,813 (+401%).
At the beginning of the Revitup collaboration, the Palmera Beach Hotel & Spa website did not have a leading role but a purely supporting role with the total visits moving in "shallow waters".
Two years later, the total number of citizens increased sixfold, a result of a clear strategy regarding the audience we wanted to reach. The promotion effort is not only focused on reaching audiences digitally but reaching the targeted audiences for each hotel. This means effectively targeting the people about whom our services are (or will soon be) focused.
Key platforms for boosting website traffic are Google and Meta, with the implementation of campaigns that target potential visitors based on searches for specific keywords or based on interests respectively.
The graph below captures the number of visitors who took the extra step and searched for availability. The increased number of searches for availability compared to total visits in these 3 seasons proves that the audience reach was of higher quality and therefore more interested in booking.
At the beginning of the partnership, a small number of people were inclined to finalize an actual room reservation. Two years later, not only has this number grown almost 50 times, but we see that the vast majority of our visitors take the next step and proceed to an availability search.
An important tool to bring visitors who are already "warm" to our page is Remarketing campaigns, contributing the most, which work both on Social Media and Google.
With a proper mix of planning and implementation, the Average Daily Rate (ADR) increased from 89 euros in 2019 to 140.80 euros in 2022. This is a result of proper pricing and continuous monitoring of supply and demand.
In the year 2022, Palmera Beach Hotel & Spa exceeded one million euros (€1,026,113 to be precise) in Online Revenue. Thus, the hotel's online income has sextupled within two years.
These impressive results would not exist without the daily effort of our partners and our constant and direct communication with the hotel management, whom we would like to thank for their trust and permission to publish the aforementioned data.
For us, all that this case study proves is that with teamwork every goal is achievable for each hotel business.
