Customer Spotlight: the President Hotel

Key Results:

• Achieved dynamic and competitive pricing in a highly competitive market

• Gained an accurate understanding of market shifts and demand trends

• Improved decision-making process with concrete data and easy-to-understand insights

About the President Hotel

Nestled in the heart of Bantry Bay, Cape Town, the President Hotel is a beacon of South African hospitality. With 349 rooms, it stands as one of the largest independent properties in the country.

The hotel's multifunctional facilities and resort-style atmosphere cater to both leisure and corporate guests, attracting a broad mix of international and domestic visitors throughout the year.

Its prime location and unique offerings make it a popular choice for travelers and set it apart from other offerings within the highly competitive Cape Town market.

We caught up with Corné Serfontein, Deputy Commercial Manager at the President Hotel, who oversees the hotel's revenue management strategy and has been instrumental in implementing Lighthouse's market intelligence products.

Overcoming challenges in a highly competitive market

Challenge

Cape Town's hospitality market has seen substantial growth in recent years and is highly competitive. As one of Africa’s premier destinations, demand has always been very high.

However, as more and more properties vie for business, it’s never been more important for a property to remain dynamic, relevant and competitive.

Solution

Lighthouse's Rate Insight and Market Insight have helped the President Hotel to determine demand on certain dates more accurately. Data from both helps them make the right decisions at the right time.

Rate Insight provides the hotel with information about their competitor’s rates and rate strategy, while Market Insight helps Corné understand what market demand he can anticipate in the future.

The Market Insight heat map paints an immediate picture of future demand meaning that he can adjust offers to ensure they are converting lookers into bookers ahead of their competition.

Results

The President Hotel has much more accurate, competitive, and dynamic rates than before. Corné can log in daily and instantly gauge where the hotel stands before quickly making any necessary strategy changes.

The hotel can anticipate future demand and adjust rates accordingly, ensuring they get their fair share of the market for any given future date in the next 365 days.

More accurate data

Challenge

Previously, the President Hotel was using a rate shopper that was not only difficult to navigate but also inaccurate.

It would convert prices from euros, dollars, or pounds into a rand value, which didn't accurately reflect the rates other properties were charging. This led to uncompetitive high rates that didn't reflect the market reality.

Solution

By feeding Rate Insight data into their RMS, they found a solution that provided accurate and competitive pricing information.

Rate Insight enabled Corné and his team to immediately see how they are pricing compared to their compset and which of the other properties are selling at room only, or which are selling at bed and breakfast.

Results

Not only are they getting more accurate data that enables a true like-for-like comparison with the rest of their compset and market, but they are also getting more granular data in real-time so that they are always positioned correctly relative to the rest of their market.

A new understanding of market demand

Challenge

Before using Lighthouse's products, Corné relied heavily on historical data from within the hotel to see which countries were booking with them, or by talking to other operators to understand the demand patterns meaning that making strategic decisions to capitalize on market trends was difficult.

Without reliable data, these were often based on previously held beliefs that most of their business came from traditional markets such as Germany, the UK and the USA.

Solution

Lighthouse's Market Insight provides 365 days of forward-looking data, allowing the hotel to eliminate any guesswork from their forecasting.

With insights into hotel searches, most searched flights, average length of stay, and booking countries, Corné uncovered new opportunities from other markets, such as Turkey, Tanzania, France, and the Netherlands, which the hotel had not previously considered.

Results

By using Market Insight data, Corné could work closely with the rest of his team to target high-yield markets with specific offers or rates, thereby attracting a more diverse transient clientele, while maximizing their return on investment for any digital ad spend.

The sales team could also focus on specific agents, operators, or corporates to negotiate new business. For example, on seeing early signs of demand in Market Insight, generated by a jazz festival, Corné was able to proactively approach the event organizers with an attractive offer tailored to that audience which included transfers to and from the event.

Easy navigation and customisation

Challenge

Before using Lighthouse's products, Corné dealt with multiple complex systems that required extensive training to understand and navigate.

These systems often lacked intuitive design, making it difficult for the team to access and interpret the data they needed for their day-to-day decision-making.

Solution

Market Insight and Rate Insight offer a user-friendly interface that is easy to navigate and understand.

They provide immediate access to data, meaning that the team can quickly interpret it and make informed decisions.

Whether it’s seeing if they have a parity problem, flagging upcoming holidays or events, or seeing the rate strategy of the market and compset, Corné can make the changes he needs, click refresh and have all the latest data at his fingertips.

Results

The ease of navigation and customization of Lighthouse's tools have saved the hotel time and allowed them to make quicker decisions. The tools' intuitive design has also reduced the need for extensive training, allowing the team to focus more on strategic decision-making.