RevenYou has shared how an underperforming motel was turned into a profitable investment, establishing a benchmark for success.
The property was acquired with the intention of serving as a defensive investment - prioritising consistent income over capital growth. The owners envisioned a hands-off approach, delegating operations to a manager while enjoying steady returns.
Despite significant renovations and effort, the motel underperformed compared to competitors in the area. After two consecutive years of financial losses in a thriving market, the owners engaged RevenYou to conduct a thorough operational assessment, identify the underlying issues and implement a strategic framework aimed at delivering profitability. A daily revenue target was determined based on the desired return on investment, establishing a clear benchmark for success.
Strategic Actions Taken
Revenue Management & Distribution Optimisation
- Conducted a comprehensive audit of the Property Management System (PMS), Channel Manager and Online Travel Agency (OTA) listings.
- Introduced a dynamic pricing strategy that adjusted rates based on day-of-week trends, seasonal demand and peak event periods.
- Developed a corporate rate strategy for targeted sales activity.
- Expanded distribution channels to include platforms focused on corporate and government segments.
- Secured competitive government contracts to increase occupancy.
- Implemented automated post-stay emails to encourage guest reviews and enhance the motel’s online reputation.
Sales & Marketing Enhancements
- Undertook a review of the website, GA4 analytics and SEO performance, resulting in a redesign of the website and content update, ensuring the property’s unique selling points were highlighted and optimised for search.
- Conducted targeted telephone sales campaigns to attract new business.
- Developed a social media calendar to ensure consistent and strategic messaging.
- Delivered on-site staff training focused on accurate guest data collection, enabling personalised marketing through quarterly email campaigns.
- Established relationships with high-volume travel agents already booking clients within the area.
- Leveraged Lanyon and Consortia platforms to increase Global Distribution System (GDS) bookings.
Outcomes
- Revenue Milestone: surpassed the daily revenue target within two months; achieved 100% growth over the original target within five months.
- Annual Trading Performance:
- Increased Average Daily Rate (ADR) by NZD 36 per night.
- Boosted room revenue by NZD 335,000.
- Profitability: the property transitioned from loss-making to profitable, with the owners expressing high satisfaction.
Return on Investment: For every NZD 1 invested in RevenYou, NZD 12 in revenue was generated.
“I have worked with Tamie and RevenYou both formally and informally for three years. Our business has seen continued growth as a direct result of getting our rate mix sorted with OTAs, government agencies and direct bookings. I know Tamie is always there if I ever need assistance and RevenYou is directly aligned with our motel when it comes to strategies and goals. I would highly recommend to anyone, even those of us who think we know everything,” said Melissa, Owner (client testimonial).
Read more in the latest issue of Hotel
