In early 2022, TCRM was hired by the River Canyon Lodge, located in Moab, Utah, to provide revenue management services.  The 80-room lodge had previously gone without revenue management services, relying on hotel operations to manage pricing and inventory controls.

With the addition of TCRM’s professional revenue management services, the property was able to see strong revenue gains in their first year of service, resulting in a 7:1 ROI.  As a result, TCRM continues to support the hotel property.

Situation: Hotel Occupancy Pace and Total Actualized Revenue

Fast forward to 2024, and the property is still thriving under TCRM’s revenue management leadership.  As of March 2024, occupancy pace is ahead by 200% compared to same time last year (STLY).   In fact, compared to STLY, revenue is up 185%, and is at nearly 40% of total room revenue actualized in 2023.

Strategy: Multi-Faceted Hotel Revenue Strategy

While we won’t reveal proprietary strategies, this case study will share general insights and overarching principles that guided the strategies.

1 – Getting the Right ADR

Like many markets located in or near well-known national parks, Moab benefited from incredibly strong demand during the pandemic years.  This allowed all hotels to drive higher ADRs.  However, in the post-pandemic world, leisure demand has dropped off significantly and rates have come down accordingly.  TCRM utilized booking data from the PMS and other business intelligence to set dynamic pricing strategies that adapted to market conditions, ensuring competitive rates while maximizing revenue potential.

The Result: Retail room night production improved by over 200%.

2 – Shifting the Hotel Business Mix

As the market dynamics changed, TCRM saw an opportunity to shift the mix of business in the hotel.  This also meant expanding the channels used to attract more travelers. 

The Result: Two new wholesale channels were added with production.

3 – Leveraging OTA Channels

Like them or not, OTA channels serve as an important part of the overall channel and segmentation mix for most hotels.  TCRM utilized analytics available from the OTA channels, along with Sponsored Ad placements, to increase bookings. 

The Result: In the Q1, Return on Ad Spend (ROAS) was 48:1

Total Hotel Revenue Impact

In conclusion, TCRM’s strategic revenue management has propelled River Canyon Lodge to new heights of revenue success.  The 185% revenue growth is a testament to professional revenue management acumen and data-driven decision making that TCRM employs with all clients.