Pricing perishable inventory online is extremely difficult and it is a major problem for specialty lodging providers
Pasadena, CA (PRWEB) September 21, 2010
LeisureLink, the leading distribution and revenue management platform for specialty lodging suppliers, today announced the launch of its Active Revenue Management™ (ARM™) system. ARM uses real time market data and powerful technology to give its clients the same pricing tools previously available to only the largest hotel chains and airlines.
“Pricing perishable inventory online is extremely difficult, and it is a major problem for specialty lodging providers,” said Erik Hovanec, President and Chief Executive Officer of LeisureLink. “The solution requires a heavy investment in technology to collect real time market information and correctly adjust prices multiple times per day. Airlines and large hotel chains have invested heavily in the technology to maximize their yields, and now LeisureLink has made the same advantage available to our clients.”
ARM has delivered impressive results for early adopters. “The results of the initial test of ARM at our Cimarron Golf Resort were eye opening” said Jeff Brodzeller, Director of Revenue Management at Raintree. “Revenues were up nearly 100% over the same period in 2009. The ARM system delivered on the promise of airline style pricing by using frequent rate changes to drive additional revenue. Consumers booked at a wide variety of price points for virtually every arrival date.”
Unsold inventory is the greatest drag on the profits and RevPar of smaller lodging providers. LeisureLink’s market research confirms that many specialty lodging units fail to sell, even in season, due to minor pricing errors. “Simply being a few dollars above market means that you will miss a fleeting opportunity to sell a unit. You can never get that lost revenue back. ARM ensures that you have the right rate, every time” said Hovanec.
ARM solves this problem with technology and market data. LeisureLink’s distribution network gives the company an enormous volume of market data, including pricing and consumer demand. That data is coupled with proprietary pricing algorithms to adjust rates in real time to maximize revenues and occupancy. “ARM delivers enterprise quality revenue management via our Software as a Service (SaaS) platform, making it affordable for specialty lodging properties for the first time”, continued Hovanec.
LeisureLink’s ARM system is in use at 20 properties, and has produced an average increase of 60% in year over year revenues. ARM’s effectiveness has been demonstrated in multiple markets and across both high and low seasons. To learn more about ARM, go to Active Revenue Management. You can also visit our newsroom for more press resources.
The specialty lodging segment has $8 billion in annual sales, and experiences vacancy rates that are much higher than the 32% (source: Smith Travel Research) experienced by larger lodging providers. “Solving this pricing problem unlocks more than a billion dollars in previously unsold inventory. ARM dramatically increases online monetization for specialty lodging providers,” concluded Hovanec.
LeisureLink powers global distribution and demand for the specialty lodging industry. LeisureLink Major Market Access™ enables property management companies to market and distribute their vacation lodging products across thousands of travel Web sites, travel agents and other distribution channels. Over 1,500 vacation rental properties, timeshare resorts, condo hotels and boutique resorts throughout North America and Europe build their bookings through LeisureLink.
For more information please contact:
Senior Vice President, Sales
# # #