Creation of 19% projected net profit increase for a hotel chain and reduction -68% the current monthly maintenance cost

Overview & Challenges

A hotel chain wanted to improve its internal technology and its external online strategy. Internally our client was managed by an expensive, non integrated multi-platform, located in the same hotel headquarters. Externally our client had a poor online presence, with low numbers of touch points, bad reviews and the main distribution channel had expensive commissions for each new booking.

Strategy Designed

A Simastec team came to assess the change of the company. The proposed plan includes measures like:

 

(1) Reduce its CCA (cost of client acquisition): on one hand, creating key performance indicator, preparing a software to visualize in a easy way graphically. On the other hand, we detected that near 90% of distribution was done by 3rd parties channels charging 21% commission on average; so try to reduce it by go over them with own online marketing channels.

 

(2) Search a new integrated, cloud, mobile-compatible and cheaper solution to manage the external sales and the internal management of the company. In order to reduce the complexity for the long-term of the company, decrease the risk and improve the efficiency of the process. After that, give a deep training to maintain the software, reducing the suppliers maintenance costs.

 

(3) Improve the online presence: increasing the numbers of touch points and the corporate branding -including the website and social networks-.

Technologies Applied

Business Intelligence, ERP, Cloud, IT Strategy, Mobility, SEO and SEM, Social Networks, System Integration, Training, Web Development

Impact

After that approach Simastec: first, decrease the technology implementation cost s in -40% and the current monthly maintenance cost in -68%. Second, it improved the online presence: increasing +1,5 over 10,0 points the average public review score by customers, increase the engagement and an average of +92,5% the number of participants in client social networks (Twitter followers and Facebook likes) and in terms of Google Search Engine Optimisation it was converted from non appearing in the 1st page of search results, to appear in the 1st results position, going over the main tour operators as Booking, Trip-advisor, etc. Third and finally, it created a projected net profit increased of 19% per year.

 

 

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Case Study

Reduce technology complexity in a retail distributor.

 

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Testimonial

"The project was great with Simastec. Speed and results, all in one."

 

- Hotel Chain Client