Posadas Turns To AltiusPAR For Real-Time Revenue Management

Until about three years ago, Mexico-based Grupo Posadas Hotels lacked the ability to confirm whether channel distribution information was complete and correctly received, risking a loss of revenue from unknown reservations missing in cyberspace. Posadas, with 91 hotels in beach resort destinations and annual revenues of US$400 million, suffered from channel management technology that was painfully slow. Sales managers were effectively encouraged to black out dates and rates to prevent accidental overbooking, and rate integrity was virtually nonexistent.

Posadas called on Dallas-based AltiusPAR to increase channel management efficiency. Posadas wanted a solution that would determine optimal, revenue-managed rates in real-time, applying them to all distribution channels while tailoring pricing and property experience based on individual guest needs and potential value.

With AltiusPAR’s real-time online inventory controls, Director of Revenue Management Mauricio Elizondo is able to monitor inventory across all channels, making educated changes on the fly. RevPAR is up about 10% as a direct result, he says, and the portfolio-wide stable of revenue managers has been reduced from about 90 to 14.

“The revenue management tool that we have now opens up the possibility to have dynamic pricing,” Elizondo says. “Additionally, the revenue management tool is giving us more accurate information regarding sales and statistical reports, which has helped in our decision-making process. This has helped directly in increasing our RevPAR. And because everyone is working in the same system in the same property, this helped in time management and efficiency.”

The AltiusPAR system is graphically attractive and user-friendly, Elizondo says, and it allows for integrated distribution and sales points and centralized inventory, payments to travel agencies and data repository. The centralized customer relationship management function allows for improved guest recognition, he says.

“We are now revenue-managing every transaction,” Elizondo says. “We are managing every group, not just against other groups, but against every business using the same space. That has been a great gain.”

Eventually, Posadas would like to leverage AltiusPAR’s expertise to implement automated check-in and an entirely interfaced sales scheme, which would reduce commission costs and increase time management while being able to easily sell distressed revenue through all channels, Elizondo says.

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