2 Hostels · Madeira
2 hostels · 13 rooms and 38 beds · Madeira Island, Portugal
At a glance
In just three months of joint work between Revenue Management Lab and Distribution Lab, two hostels on Madeira Island achieved outstanding results: December, typically a low-season month, finished 33% above their best August ever, and accommodation revenue grew by an average of 60% per month compared with the previous year.
The hotel
Two distinctive hostels on Madeira Island, with a combined total of 13 rooms and 38 beds, committed to providing unique and memorable experiences for their guests. They recognized the importance of refining their revenue management strategy and turned to Tourism Lab's Revenue Management Lab and Distribution Lab.
The partnership focused on optimizing higher-yielding segments and navigating seasonal dynamics, with a tailored solution built for each property's specific needs.
The challenge
Four challenges shaped the work:
1. Increase ADR (Average Daily Rate), based on analysis of market trends, competitive pricing and guest demand. 2. Improve positioning and visibility in the main OTAs, to increase positive reviews and drive bookings. 3. Reduce the negative impact of the group segment, due to the creation of shoulders. 4. Organize reporting and define the main competitors in the local market, to support decision-making.
What we did
Seasonal pricing strategy
Creating a seasonal pricing strategy, based on a detailed internal analysis to find the main opportunities, supported by tools such as Yield Calendar and a Rate Shopper.
Channel manager and OTAs
Changing the channel manager structure to give partners price parity and conditions to increase their production, and contracting and restructuring the main OTAs in line with the properties' targets.
Seasonal offers
Seasonal offers to improve ranking and online visibility.
Case-by-case group quotes
Quoting groups on an ad hoc basis, to avoid accepting deals that could negatively affect total revenue.
Results
+60%
Monthly accommodation revenue vs previous year (average)
+33%
December vs best August ever
3 meses
To the first results
Record performance in low season
After just three months of implementation, December, typically a low-season month, grew 33% above the best August ever recorded.
Consistent growth
The hostels consistently achieved an average monthly growth of 60% in accommodation revenue compared with the previous year.
Higher occupancy and ADR
Both occupancy rate and ADR increased.
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