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Overview
Overview
A leading European hospitality chain with 10+ hostels and hotels across UK and Europe had recovered strongly post-COVID, with revenues growing £20M+ in 2023. However, despite overall growth, certain branches were underperforming, masked by strong group-level results. Management wanted to identify and fix these weak spots to sustain long-term momentum.
The Challenge
The Challenge
Analysis revealed that two branches were consistently underperformed, with 5–6% lower occupancy than peers. Root causes included:
Uniform pricing across all branches, ignoring local market dynamics and seasonal demand.
Poor booking management, with unpaid reservations blocking beds during high-demand periods.
Staff professionalism issues, impacting customer experience and reviews.
Without intervention, these localized inefficiencies risked eroding customer trust and future growth.
The Solution
The Solution
AEM Consulting conducted a KPI-based performance review (Occupancy, ADR, RevPAR, ReRTI, Reviews, MPI) across all properties. Key interventions included:
Localized dynamic pricing, empowering branch managers to adjust rates based on events and demand.
Booking management training, emphasizing prompt cancellation of unpaid reservations and proactive inventory control.
Targeted staff training and hiring changes, focused on professionalism and guest experience.
Results
Results
Within just 2 months:
2% performance improvement at the underperforming branches, driven by higher occupancy and revenue.
More efficient booking management, maximizing inventory during peak demand.
Foundation for long-term growth, with localized decision-making and staff professionalism now embedded into operations.
These early results confirmed that granular, branch-level interventions are far more effective than broad, centralized strategies in sustaining growth.
For expert insights and strategic solutions in optimizing hospitality operations, enhancing profitability, and driving sustained growth, please contact AEM Consultancy.
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