Right Revenue helped Sanctum Soho to increase ADR by 19%Text
Background
The Karma Sanctum Soho has an enviable reputation amongst the great and the good of the music scene. Owners Mark and Sherene Fuller have welcomed industry legends, past and present to the Sanctum Soho and they have always wanted this to be the hotel of choice for travelling musicians. Sanctum Soho is the place where you can come back to after an exhausting gig and get a proper drink, mixed by a ‘Mixologist’ and not a “gin and tonic from a can, served by the night porter.”
Over the years the hotel has built an incredible reputation, a loyal client base and a solid business.
The Sanctum Soho is run by a tight-knit, lean management team. Mark (Founder/Owner), Sherene (GM) and Gabriela (Accounts Executive) are all involved in the operation and running of the business. They all contribute to the revenue strategy and the day-to-day pricing strategies. Between them they have extensive knowledge of how the local market behaves and are constantly striving to ensure the best and most profitable business mix, whilst maintaining the integrity of their very high levels of customer service and guest satisfaction.
Challenges
Both the global pandemic and then the following financial crisis brought an array of challenges to the hotel. As The Sanctum Soho emerged from the pandemic into a market with different behavioural patterns, Mark and Sherene realised that there was, perhaps, the opportunity to be more proactive with their rate management.
The Soho market, in which the Sanctum Hotel operates, is very competitive and market dynamics change often and fast, lead times are short, competitors change, rates fluctuate wildly and events across the city push and pull at demand.
The team at Sanctum Soho found that they did not have sufficient time to apply their knowledge and expertise consistently nor did they have time to adjust their rates as often as they would like. They also found that they could not always dedicate time to changing prices of specific room types according to demand patterns.
There was a feeling that sometimes there was ‘money left on the table’.
Solution
In early 2023 the team selected Right Revenue as the partner to assist them overcome these challenges and to help them maximise opportunity.
Through integration with Reslynx (Guestline) Right Revenue imported all the historical reservation data, meaning that the team instantly had access to a suite of revenue related reports available for historical and future periods.
More importantly, the Right Revenue onboarding team worked with the hotel team to find the most effective pricing model - i.e. the one which was suited to the needs of the hotels, whilst allowing Right Revenue’s technology to have the most positive impact on profitability.
Customer Benefits
Sanctum Soho was able to move the hotel away from traditional, inflexible rate bands (bar levels) to a more flexible, dynamic model.
Daily Rate Recommendations mean the hotel is more proactive with rate changes, helping them to maximise opportunities and drive rate when demand is strong.
Need dates are instantly identifiable and strategies can be put in place immediately.
The rate shopping tool makes price comparisons amongst competitors quick, easy and accurate. This saves hours per day as well as reducing potential for human error and ensures the team are working with up-to-date information.
The whole team has access to relevant reports and critical information meaning revenue decisions are now made quicker with more strategic outcomes.
Why Right Revenue
During the selection process, the team at Sanctum Soho felt that Right Revenue offered the perfect blend of sophisticated technology and human interaction.
With both companies in a phase of growth, Mark and Sherene were excited by the opportunity to join forces with a company who valued the input of their clients. They also wanted do business with a company they felt they could trust, and one which had similar ambitions for growth.
From a technical point of view, they liked the fact that Right Revenue was a flexible solution, which allowed them to configure the system according to the needs of the property.
The Stats
Despite only using the system for a few months The Sanctum are already seeing some great results;
The team estimate that use of Right Revenue has saved them circa 50 hours per month
For Q3 ADR has increased 19.6 %, and Q4 shows an increase of 18.6%.
What the Team Say
Using Right Revenue has given me a one-stop shop to move my rates up and down automatically, both on my website and OTA portals, considering our own unique demand, but also keeping in line with comparable other hotel rates.
The system has given us the confidence to hold rates during high demand and offer more flexibility when we need to. In real terms, this means that we never miss a trick!
We have all of the data we need to make decisions at our fingertips and this means that we quite literally action things much quicker.
That equals better revenue and less headaches!
That can’t be bad can it!
Mark Fuller CEO, Concept Ventures Ltd
What Right Revenue say
The team at Sanctum Soho have been amazing through every step of this, their first step into a revenue technology journey.
I know Mark won’t mind me saying that he was a little reticent at first and as an Owner/Manager I would have expected nothing less. It takes a huge leap of faith to allow a software solution to effectively manage your rate strategy but over a very short space of time, Mark has become one of our biggest advocates.
Mark uses our favourite word ‘useful’ a lot and we love that! We set out to design a revenue solution that quite simply put was indeed ‘useful’. Mark has all of his data in one place and we are thrilled to have been able to support him with such a strong uplift in revenue (which of course we don’t take full credit for) but it is wonderful that we have been able to partner and guide the hotel to such strong revenue growth.
And best of all, Mark has now allowed us to partner with his second site, the stunning Karma Sanctum On The Green, in Cookham Dean, and for us, there is no higher praise than to be trusted enough to partner with a growing and expanding business.
Thank you Mark and Team - you are an absolute pleasure to work with!
Adrienne Hanna, Founder & CEO, Right Revenue
