Turkish hotel group, IC Hotels, claims it now achieves more than 18% of bookings from direct marketing campaigns and as a result reduced commission levels to 3%. IC Hotels has spent the past five years developing its online marketing strategy and has successfully developed a new approach to bookings which has grown revenue 1,500%*
The group invested time and resources in revenue management technology to boost and optimise distribution while leveraging more opportunities for gaining direct business to improve profits. Working with BookLogic, the hotel group needed to boost sales and see where future bookings were coming from. As a result, the portfolio upgraded its property management systems by implementing BookLogic’s Smart Booking Engine to improve direct booking.
IC Hotels connected ChannelPass channel manager, in order to have flexibility in its channels, and integrated bespoke rate shopping data for each property with Hotel Compare Manager. It was important that the technology products were fully integrated with the existing systems and were simple and easy to use for the existing management team. Each property can now change channels easily and quickly, while optimising rates and updating availability simultaneously to improve revenue performance.
“We increased our ADR and RevPAR values up until the close of 2015. Our rates grew approximately 15% in 2013, 19.5% in 2014, and has continued to grow by 5% in the last year,” said Mr Fuat Ersoy, business development and marketing sales director. “We review competitor rates in order to maintain our competitiveness and remain ahead in the market. This ensures we do not out price ourselves in any given market.”
The group didn’t just rely on technology to draw increased revenues, but also improved its SEO, PPC and online marketing performance across all channels to bring business throughout the year from across new traveller markets. IC Hotels took the opportunity to sell its super luxury villas and travel lodges online. Previously the hotel chain was selling to a limited market for specific periods within the year, by investing in online visibility and branding the portfolio is now booking throughout the year, for up to 25 days, with guests from new locations worldwide.
“Within five years, IC Hotels increased the direct email customer booking business from 7% in 2010 to over 18% in 2015. In addition commission costs fell to only 3%.” continued Mr Ersoy. “With the help of BookLogic, we are now able to focus on the most profitable partners, as well as investing in marketing that is driving more direct bookings. This has helped us develop the long-term view for a more sustainable yet flexible revenue management strategy.”
“IC Hotels has made a 100% commitment to online bookings and has renovated its sales, revenue and marketing strategies to optimise the performance of its most lucrative channels,” said Oral Yigitkus, CEO, BookLogic. “The properties utilise important competitor and market data to improve results immediately through the tools that provide flexibility for updates and distribution. The technology combined with improving online visibility through digital marketing is driving direct traffic that is converting into valuable bookings.”
BookLogic provides the full suite of revenue management and marketing services to IC Hotels working with one team to optimise its position in the market, while ensuring reservations and occupancy levels are continually improved. BookLogic’s direct connections with the wider travel industry and OTAs, and GDS means that IC Hotels is able to take advantage of improving visibility and commission rates to reduce costs.
Read the full success story here: http://www.booklogic.net/case-studies/ic-hotels-group-case-study.php
*Revenue increase represents the growth between 2011 and 2016.
