San Francisco's Parc 55 Drives Revenues Amidst Tough Economy with Travel Tripper
The Parc 55 Hotel near Union Square reports significant increases in revenue-per-available-room (RevPAR) over the same period last year -- even despite falling metrics in the hotel industry. The 1,010-room downtown San Francisco hotel attributes its success to increasing the amount of direct-web bookings via Travel Tripper's private-label booking engine RezTrip, and the system's ability to apply condition-based pricing rules or promotions. As such, the Parc 55's website has become its lowest-cost, highest-return distribution channel.
From May 2008 to May 2009, during the worst economic decline in U.S. history since the Great Depression, the Parc 55 saw roomnights booked through its own website climb 46.9% and its revenues rise 33%. Roomnights driven by their website Q1 2008 accounted for 8.3% of contribution compared to 12.1% of roomnights Q1 2009. Website revenues climbed from 9.5% of contribution in Q1 2008 to 13.4% in Q1 2009.
From May 2008 to May 2009, during the worst economic decline in U.S. history since the Great Depression, the Parc 55 saw roomnights booked through its own website climb 46.9% and its revenues rise 33%. Roomnights driven by their website Q1 2008 accounted for 8.3% of contribution compared to 12.1% of roomnights Q1 2009. Website revenues climbed from 9.5% of contribution in Q1 2008 to 13.4% in Q1 2009.
Through RezTrip, travelers can consistently find the best rates and deals with the hotel directly, rather than booking through intermediaries, he said. This means more direct revenue for the property and a positive impact to the hotel's bottom line while giving it complete, real-time control over inventory. RezTrip allows hotels to increase revenue, decrease dependency on high margin third-party websites, sell ancillary products and services pre-arrival, enhance guest confidence and loyalty and boost productivity.
John Bauso, Parc 55's director of revenue, says independent properties such as Parc 55 do not have the huge brand power of prominent hotel chains. RezTrip leverages the marketing value of third-party intermediaries and allows the Parc 55 to compete favorably with the big brands while being easier to use.
"RezTrip produces results — and that's critical for an independent property that doesn't have the brand clout of a Marriott or a Starwood," says Bauso. "It's also much easier to use than any other system I'm familiar with. Whereas you could spend a weekend in a class learning the in's and out's of other systems, I can have someone trained in a matter of a few of hours. It's intuitive, crystal clear, and we were up and running in no time. The bottom line is, we're much better off as a property."