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increase in net room nights after loading long-term inventory*
increase in raw margin dollars (RMD) after loading long-term inventory*
Challenge: Maintain steady bookings in a competitive market
As general manager, Janet Chen had a top goal of filling as many beds as possible at the Beimen WOW Poshtel. The Taipei market is competitive, with over a million searches by travelers every day across our travel websites.
Janet knew she had to think creatively to set the Beimen WOW Poshtel apart from the competition. The 22-room property is unique in that it offers private rooms and dormitory options, making it appealing to a wide variety of guests.
For help attracting more travelers and increasing bookings, Janet turned to her market manager. Together, they analyzed the market and came up with a revenue management plan to achieve these goals and maintain a healthy average daily rate.
Solution: Increase bookings with a long-term inventory strategy
Janet’s market manager recommended the hostel adopt a long-term inventory strategy to maximize potential bookings. Opening up inventory for future dates would help the Beimen WOW Poshtel attract travelers who want to make reservations six months or even a year ahead of their trip.
To further appeal to potential guests, Janet created several early-bird promotions. The earlier travelers made their reservation, the bigger the discount they received. Janet also offered discounts to guests who stayed more than two nights to incentivize longer stays.
“It’s easy for us to set up promotions in Partner Central since we can amend them daily instead of having to set them for specific lengths of time. We depend on OTAs to sell rooms, so the promotions function works really well for us.”
Results: Managing and promoting future inventory pays off in a big way
After opening up long-term inventory and adopting early-bird promotions, the hostel saw a 150% increase in net room nights and a 392% increase in raw margin dollars.*
Future: Preparing to welcome future guests
Like many partners, Janet has felt the impact of COVID-19. The Taiwan market saw a drop in demand throughout the pandemic, but the hostel’s inventory management strategy ensures they can capture bookings from travelers eager to explore in the future.
In addition to adjusting their inventory and creating early-bird discounts, Janet and her team are also renovating select rooms to ensure the property is ready to welcome future guests as demand returns to normal.
*Expedia Group internal data, 2020
Information contained in this article may have changed since publication.
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