Case Study: RezTrip Delivers for Park Central
The Park Central Hotel is an independent, 3.5-star hotel with 900+ rooms located in the very competitive midtown Manhattan market. The property enjoyed occupancy rates over 95%, and the property’s owners challenged its management company to grow net operating profits. The owners aimed to capitalize on the “10-cap rule of thumb” where, with each million dollar increase in annual net operating profits, the asset value of the hotel would increase by a minimum of $10 million.
The Strategy
Park Central decided that the best way to achieve the owner’s objective was shift the mix of business from lower-rated customer segments to higher-rated ones. To do this the hotel would need to replace secure business coming from wholesale tour operators and high-margin online travel agencies with more lucrative but less certain business from transient leisure travelers.
The hotel switched to Travel Tripper’s RezTrip booking engine, and the results were stunning.
The Results
In the first nine-month period after deploying RezTrip, the hotel booked over $12.7 million through their website. In the same nine months of the previous year (while using another provider), the website had booked only $4 million.
RezTrip’s streamlined user interface, dynamic pricing, and packaging capabilities helped the hotel successfully convert many website visitors to guests. A greater share of its bookings were coming through their own website and from higher-rated transient consumers. More rooms were being booked online, without costly third-party agencies, and at higher ADRs.
With its dynamic pricing, packaging, and showcasing capabilities, Travel Tripper’s booking engine had helped the hotel successfully convert many website visitors to guests. A greater share of their bookings were now through their own website and from the higher-rated leisure travel group, so more rooms were being booked online, without costly third-party agencies, and at higher ADR’s.
The Bottom Line
Ever since Park Central installed RezTrip, its website has been by far its most profitable distribution channel. The hotel owners estimated that Travel Tripper alone generated an incremental profit of approximately $3.19 million, and applying the “10-cap rule of thumb” the hotel’s asset value has increased by at least $32 million.
Below are graphs showing how several key metrics improved – and have remained improved – for the hotel upon implementing RezTrip
Revenue Delivery per Month
Reservations Booked
Room Nights Booked
