How Hotelatelier was able to identify their guests’ willingness to pay for their rebranded properties in Madrid and Barcelona.
In summer 2018, the Hotelatelier Group re-launched three of their hotels in Madrid and Barcelona under the newly created Icon brand. This re-branding went hand in hand with a change in target group, a new competitive set and the goal to establish the new brand long-term. In order to achieve this, the revenue management team had to analyze their new offer compared to the competition and understand exactly what their target group would be willing to pay for the quality they offer. Matching guests’ expectations of quality with price was perceived to be one of the keys for creating a sustainable base of loyal guests.
“The Hotel Quality index has been key in positioning us with respect to our compset. The comparative value between our establishment and those we consider direct competitors, allows us to establish a pricing strategy in line with customer expectations. How much a client is willing to pay to stay in our hotel is a key factor to increase sales.” – Beatriz Crespo García, Pricing Operations Manager at Hotelatelier.
The re-branding process has coincided with the implementation of BEONx. In the process of identifying their target group’s willingness to pay for the new products, Hotelatelier’s revenue management team largely relied on BEONx’s Hotel Quality Index.
The Hotel Quality Index, which is based on objective factors plus online reputation, allowed the team to quantify not only their own quality, but also their competitors’ quality, Going a step further, HQI combines this quality data with competitors pricing. This deeper insight into the market ensures pricing decisions coincide with guests’ expectations of quality. and enabled the team to correctly position their properties within the marketplace from the outset.
The scores on the price-quality-ratio on review platforms show to what extent guests’ expectations of quality match with the price. Let’s compare them before and after implementing BEONx.
Hotelatelier’s team was clearly able to identify their guests’ willingness to pay for the quality they offer with the help of the Hotel Quality Index. This fair price identity will be one of the cornerstones to successfully establish the ICON brand long-term.
“Including this indicator in the RMS decisions combines demand patterns with quality data, marking a differential value with respect to other systems that do not include this variable in their decisions. For us it has been key to take quality into account, allowing a better analysis of pricing decisions.” – Beatriz Crespo García, Pricing Operations Manager at Hotelatelier.