Gastwerk and 25hours Hotel Hamburg No1 Achieve RevPAR Index Increases

8/3/2019 Gastwerk and 25hours Hotel Hamburg No1 Achieve RevPAR Index Increases

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Client SuCCeSS Story

Gastwerk, the rst Design Hotel established in Hamburg,

is situated in the uniquely stunning surroundings o an 1896

ormer gasworks building. Situated in the west o Hamburg,

this brick house has 141 rooms, lo ts and suites in addition to

200 person capacity con erence acilities and a restaurant, bar

and spa or guests to enjoy.

Neighboring to, and under the same management team as,

Gastwerk, the 25hours Hotel Hamburg No.1 is a contemporary

design-led boutique hotel with 128 rooms. In Germany and

urther a eld, the 25hours Hotel Group has gained a reputation

or its a ordability and o beat creative brand voice.

The Challenge

As we were acing several challenges, such as the economic

downturn and increased competition in Hamburg rom the

addition o 6,000 beds per year rom new hotels, calling IDeaS

Hospitality Consulting was the right decision, at the right

time, explained Kristin Seel, General Manager o Gastwerk and

25hours No.1.

In order to meet the challenging market conditions, the

hotels elected to invest in developing a best practice

revenue management culture across the organizations while

also enhancing its systems by utilizing the IDeaS Revenue

Management System (RMS).

Fast FactsHotel

Gastwerk and 25hours Hotel No.1- members o the Design HotelGroup

Challenges Understanding the value o

revenue management

Difculty establishing optimumrates

Solutions IDeaS Revenue Management

System (RMS)

IDeaS Hospitality Consulting

- IDeaS Insight - Revenue andChannel Opportunity Analysis

- IDeaS Virtual Revenue Management services

Gastwerk and 25hours Hotel Hamburg No. 1 Achieve RevPAR IndexIncreases of 7.5% and 2.7% Respectively After Enhancing RevenueManagement Structure


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The main challenge that prompted Gastwerk and 25hours No.1 to partner with IDeaS Hospitality Consulting was the

issue o pricing transparency. For example, prospective guests asking or prices on the phone were, on occasion,

given rates that di ered signi cantly rom the rates quoted online, Seel explained. This was, in part, due to a lack

o an integrated pricing structure within the organization and the increasing ability o customers to view multiple

prices and products as a result o growing strength o on-line channels and hotel review sites.

In addition, when it came to the optimization o

shoulder periods o traditionally high-demand days,

the management elt there was room or improvement.

While we were happy with our per ormance on

periods o high-demand, we were still struggling to

optimize demand on shoulder periods in order to

optimize revenue consistently. And actually, the marked

di erence in occupancy levels throughout the period

was making our strategic business planning difcult

and causing us human resource issues in that we were

never sure how much support sta we would need inthe hotel, said Seel.

The Solution

IDeaS Insight - Revenue and Channel Opportunity Analysis IDeaS Virtual Revenue Management services

The process was started with a comprehensive review o current revenue management practices and opportunities,

and the creation o a detailed revenue roadmap as to how the hotels could best develop a revenue management

strategy to improve per ormance. Based on this roadmap, IDeaS Hospitality Consulting provided personalized

support and assistance to Gastwerk and 25hours No.1 in distinct project phases, over the period o a year. Each

phase had speci c products and activities customized to the individual hotels requirements.

One o the key recommendations delivered by the IDeaS Consultants was or Gastwerk and 25hours No.1 to create

a dedicated revenue management role. As part o the roadmap, the hotels also implemented a new process or the

determination o rates, and adjusted their group pricing structures and market segmentation, according to industry-

wide best practices.

In order to maintain the revenue management momentum and ongoing business per ormance, IDeaS Hospitality

Consulting also delivered daily tactical revenue management support to Gastwerk and 25hours No.1 in the orm o

Virtual Revenue Management Services.

Once a dedicated revenue manager was established, IDeaS Hospitality Consulting implemented a mentoring

program in order to ensure that the newly-developed revenue management culture would be sel -sufcient and

sustainable. This involved training sessions on revenue management principles and guidance on how to ully

optimize the IDeaS RMS, in the orm o weekly calls and daily support when required.

This series o phases has enabled Gastwerk and 25hours No.1 to grow a sophisticated revenue management culture

across the organization, resulting in optimized pricing, distribution and orecasting processes.


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The Results

IDeaS Hospitality Consulting has assisted Gastwerk

and 25hours No.1 in building a success ul revenue

management structure, utilizing the right tools,

processes and people.

Overhauling revenue management across our

business was exciting, but it was also an intense project

that required commitment and concentration. Apart

rom being very satis ed with the genuine commitment

to our business shown by IDeaS, as a result, we are

now also able to expertly employ advanced revenue

management techniques and processes, delivering

recognizable business bene ts, said Seel.

Since the consulting project ended, the two hotels have

been doing exceptionally well against their competitive

set in August 2011 Gastwerk showed a 7.5% increase

in RevPAR (Revenue Per Available Room) Index, while

25hours No.1 showed a 2.7% RevPAR Index increase.

Following revenue management processes standardised

by IDeaS Hospitality Consulting, Gastwerk and 25hours

No.1 were able to orecast demand more accurately,

allowing Seel to manage resources more e ectively in

the hotels. Accompanied by a newly instilled awareness

o pricing and occupancy optimization strategies, this

also meant that the hotels were able to success ully

optimize peak and shoulder periods, stabilizing demand

and pricing dynamically to drive revenue per ormance

at the hotel.

There is enhanced internal communication concerning

revenue management across key revenue stakeholders

at Gastwerk and 25hours No.1, leading to a deep

understanding o this important hospitality eld and

driving the hotels to retain a competitive advantage and

achieve long-term revenue management goals.

Finally, now that Gastwerk and 25hours No.1 are

optimizing rates and practicing dynamic pricing, the

advantages are not only seen in increased revenue or

the hotels; hotel guests also bene t rom transparent

pricing structures as well as competitively optimized

rates in periods o low-demand.

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We are now also able to expertly employ advanced revenuemanagement techniques andprocesses, delivering recognizablebusiness benefts.

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Gastwerk and 25hours Hotel Hamburg No1 Achieve RevPAR Index Increases