Switzerland’s diverse Tailormade Hotels group consists of 13 properties scattered throughout the alpine country (and one in Cape Verde). With an eclectic inventory – from rooms to beds to apartments – and a broad range of customer types, the hotel group needed revenue management technology that could handle a complex revenue mix.
NB: This is an article from Flyr for Hospitality, one of our Expert Partners
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We spoke with Revenue Manager Alex Löw about how FLYR for Hospitality has helped revolutionise Tailormade’s pricing process.
Finding the right technology
“A few years ago, we started the search for a Revenue Management System (RMS) with a true two-way API connection. The legacy revenue management vendors can’t really do that, so we looked at more modern options. We wanted a system we could navigate easily and that plugged into Apaleo – our cloud-based Property Management System (PMS). We also needed something with a good reporting function, which ruled out a bunch of systems.
“In the end, FLYR for Hospitality was the best fit for us. Their native, integrated BI and user interface particularly differentiated them from the competitors.
“We used to work with a basic demand calendar with seven buckets requiring manual adjustments. One of the most challenging things was that, because I had so many other tasks and responsibilities, I simply did not have the time to check pricing at the properties every day and ensure they were optimised for the upcoming months. My pricing focus was never more than the next 14 days at each property.
“We were missing a lot of chances to impact prices and revenue. Furthermore, that 14-day window normally had over 80 percent occupancy so even then it was too late to make a material difference. We often take reservations several months out and I would never be able to price that far out before. But now, FLYR for Hospitality is always working and pricing 365 days out. Problem solved.”
Rapid and flexible implementation
“All of our properties now have fully automated pricing. Onboarding was fast and easy, with our first property set up in just two working days and on autopilot within two weeks.
“But FLYR for Hospitality didn’t force us to activate autopilot immediately for every property. We were able to personalise our approach and accommodate some of the general managers who were hesitant and needed more information. A few wanted proof over time that the system wouldn’t automatically apply its recommendations without their input. We worked together to set minimum and maximum acceptable pricing, manually adjusted the system when needed, and eventually went to full autopilot when the GM had confidently accepted the system’s recommendations for two solid months without adjustment.
“The system provides all the possibilities. Then you put it on autopilot and let it run.”
Instant results
“We have a big mix of inventory and a range of customer types so an RMS that handles that is essential. For example, one property in Zurich is 85 percent corporate while another on the lake in Lucerne has over 40 rooms for mainly weekend leisure visitors and another one caters to one-night stays for travellers (the Germany to Italy route) on the side of the motorway.
