How Madrid hotels used RoomPriceGenie during peak demand

Imagine this scenario: Taylor Swift posts a new photo on Instagram with a hidden message about her upcoming concert dates and venues that are near your accommodation. Whether you’re entertaining guests or enjoying time with your family, you might miss this important information. The next day, your accommodation is fully booked for those dates without you knowing about the Taylor Swift concert that sparked the demand.

If you don’t know Taylor Swift, this American songwriter and singer is known for hiding “Easter eggs” – hidden messages for her fans. These clues often reveal the themes of her new albums or the dates and locations of her upcoming tours. Her fans, known as Swifties, are always on the lookout for these signs.

Without an automated revenue management system, you may be missing out on opportunities to maximize revenue at such high-demand events.

The challenge

The above scenario may sound hypothetical, but similar stories have already happened to many hoteliers around the world.

Hoteliers who come to us are often faced with the challenge of manually tracking market trends, competitor rates and fluctuating demand. This can lead to missed opportunities, especially during high-demand events like concerts or industry-specific conferences. By the time they realize what’s happening, it’s already too late to adjust their prices because rooms are already booked.

The solution

At RoomPriceGenie, we are determined that this never happens to hotels again. That’s why we have developed a protection model that kicks in immediately after a booking rush, giving you time to react to the situation. You will never sell your rooms too cheaply again.

This ensures that hoteliers can take advantage of times of high demand without the need for constant manual monitoring.

Read everything about surge protection here →

The results: Three of our clients in Madrid increased their sales by an average of 108% during the Taylor Swift concerts using RoomPriceGenie, which worked on autopilot.

First of all, it is important to mention that these three properties had the RoomPriceGenie autopilot switched on. This means that they did not have to change their prices if they did not want to. Our solution is always They work quietly in the background and optimize their prices and utilization.

Second, all three clients have our Professional subscription with automatic price uploads to the PMS 24/7 and future pricing recommendations 18 months in advance.

Most recently we compared May 28 to June 2. Here are the results:

160-room apartments and short-stays: In just five days, they covered RoomPriceGenie’s costs for the next nine months.

• An average increase in sales of 78% compared to the same data in 2023.
• The ADR rose in May from €69 in 2023 to €175 in 2024 – an ADR increase of 153.62%!
• After paying €824/month to use our software, the average increase in revenue for this data was a whopping €7504. That’s right, you could say that in five days they covered the costs of RoomPriceGenie for the next nine months.

Hostel with 92 beds: 120% increase in revenue

• This hostel recorded an average revenue increase of 120% compared to the same data in 2023.
• The ADR rose in May from €33 in 2023 to €92 in 2024, an increase of 178.79%!
• After paying €202/month to use our software, the average increase in sales for this data was €2141. The next ten months of the RoomPriceGenie subscription are covered 🙂

Hostel with 50 beds: an increase in ADR of 286.36% in May compared to May 2023.

• An average increase in sales of 127% compared to the same data in 2023.
• The ADR rose in May from €22 in 2023 to €85 in 2024, an increase of 286.36%!
• After paying only €202/month to use our software, the average increase in revenue for these appointments was €1252 compared to the same appointments the previous year.

You could argue that Taylor Swift had a big impact on these results. And you’d be right – but with RoomPriceGenie on autopilot, these hoteliers didn’t have to worry about their prices and how their results could be affected by no-shows or last-minute cancellations. RoomPriceGenie optimized their prices in real-time, ensuring maximum revenue and occupancy.

Say goodbye to missed sales opportunities when demand suddenly increases

And it’s not just Taylor Swift. One of the worst ways a hotel loses money is when a big event is announced and, before you know what’s happening, you’re selling your rooms for a fraction of the price you could have charged.

We often hear from hoteliers and property owners that they miss important dates and events:

“I spent hours figuring out how to price my rooms, but still missed revenue opportunities because I sold my rooms too cheaply when demand was highest.” – Hector Sarmiento, Oasis Hotel

“With the number of properties we manage, you can imagine how much time it took to manually change the prices. In fact, we needed full-time staff to help us manage the prices. Often, we would miss the odd holiday or upcoming event and miss out on revenue as a result.” – Greg Marshall, Book Tekapo

How does the surge protection function work?

The Surge Protection feature monitors your property’s reservation data to identify when there is a significant increase in bookings on a particular day. The price is immediately adjusted and you are notified of the increased demand in your destination. The Surge Protection feature causes RoomPriceGenie to send you an email notifying you of the increase in demand. The link includes a link that takes you directly to the Surge Demand Alert in the RoomPriceGenie system where you can adjust your prices accordingly. The alerts allow you to change your prices accordingly to increase revenue. By automatically adjusting your prices in real time, you avoid leaving money on the table.

Try RoomPriceGenie for your property with a 14-day free trial

Want to maximize your revenue? Meet with our revenue management expert today to get started with RoomPriceGenie.