Revenue Management Technology Produces Strong Early Results
HOUSTON, Texas, (Oct. 12, 2010) — Raintree Vacation Club has reported successful early results in a test of LeisureLink’s Active Revenue Management system. LeisureLink, Inc. is the leading distribution and revenue management platform for specialty lodging suppliers. Raintree Vacation Club (Raintree) offers a wide variety of condominium style lodging across the US, Canada, and Mexico.
Since early 2010 Raintree has participated in an ongoing test of LeisureLink’s new Active Revenue Management (ARM) system. Raintree Vacation Club is a longtime LeisureLink client, and the ARM system was first employed at their Cimarron Golf Resort in Palm Springs, CA in early 2010.
“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 deliver additional revenue. Consumers booked at a wide variety of price points for virtually every arrival date.”
LeisureLink’s Active Revenue Management incorporates a vast array of market data, the individual property’s strategy, and LeisureLink’s powerful distribution system to rapidly shift prices in response to changes in consumer demand. The result is the right price for every consumer, every time.
“Even though we were impressed, we needed to see results across more resorts, in different types of markets and with different travel patterns, before we fully committed to using the system,” said Brodzeller, “so we implemented ARM for 3 other properties. We were able to generate similarly strong high season results at our Sandcastle at Birch Bay property in Washington state, and gained valuable insight into the consumer’s response to changes in price.”
“Working with the Raintree team, we were able to fine tune the ARM system to significantly increase volume with only modest discounting,” said Steve Reich, Senior Vice President of Sales and Marketing at LeisureLink. “The Raintree team’s strategy and local market knowledge were critical to this effort.”
“We were able to nearly triple our high season online bookings by closely monitoring the market and adjusting our strategy,” said Brodzeller. “ARM assists us in tracking the market and calibrating our response in real time.”
Raintree Vacation Club and LeisureLink will next focus on properties in Los Cabos and Puerto Vallarta, Mexico. “We want to test ARM at our Club Regina Los Cabos resort, as well as at our Club Regina Puerto Vallarta resort. Shoulder season can be challenging at these properties, and the system will add real value by increasing rental revenue during this period,” said Brodzeller. “Since both properties also offer onsite restaurant and bar facilities, we will also create the opportunity for more food and beverage revenue during a traditionally slower time of the year.”
“The LeisureLink team has been working with Jeff and his team at Raintree to identify the correct competitive set and review market pricing and demand data for Los Cabos and Puerto Vallarta. We are looking forward to driving strong results at these properties as well,” said Reich.
To learn more about ARM, go to Active Revenue Management. You can also visit our newsroom for more press resources.
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 visit www.LeisureLink.com and to view properties go to www.ABetterStay.com.
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