Streamlining Success: Altstadt Hotel Hofwirt and HotelPartner
The long-established 3-star Altstadt Hotel Hofwirt in Salzburg has always been owned by the Gmachl family. For a long time, manual pricing was used, which took a lot of time. Hotel manager David Koller has set himself the goal of making the hotel the best 3-star hotel in the city. As part of this vision, he brought HotelPartner Revenue Management on board in February 2022. In this success story you will get an exciting insight into the successful development of the hotel since the beginning of the partnership between Director David Koller and our Chief Portfolio Manager Stefan Hannemann.
The Starting Point: Increasing Occupancy by Lowering Prices
The location of the 111-room hotel in the heart of Salzburg’s old town is a key USP for the Hofwirt and has contributed to the hotel’s good occupancy throughout the year, even before working with our revenue management experts. Approximately 85% of the hotel’s guests are leisure travellers who also appreciate the hotel’s easy accessibility by car or public transport. Overall, the hotel has a market share of around 8-10% in terms of overnight stays.
In the past, however, the Hofwirt has had to sacrifice revenue in order to achieve high occupancy rates. The focus was on filling the hotel at all costs, which left a lot of potential untapped, according to hotel manager David Koller. Generous room rate adjustments were occasionally successful in maximising occupancy. Manual pricing did not allow for quick and flexible responses to fluctuations in demand. In order to unlock the potential that had been identified, David Koller sought support, which he eventually found in collaboration with us.
Onboarding: Trust as the Basis for First Successes
The decision to partner with HotelPartner was an easy one for David Koller, as it was recommended by a fellow hotelier and friend who also works with us. In addition, according to Koller, he felt that we had “handshake quality” from the very beginning. This initial trust outweighed any concerns during the introductory phase, when we required deep insight into past seasons and the associated figures relatively quickly. Within the first few weeks, he realised that, as an open and honest person, he was dealing with like-minded partners, which helped to establish trust.
Our Chief Portfolio Manager, Stefan Hannemann, was able to build on this trust during the onboarding process and soon began to see positive results from the work invested. Stefan particularly appreciates the transparent and honest exchange with the Hofwirt team, which allows both sides to make constructive suggestions for improvement in order to maximise the success of the business.
Long Term Successes: Higher Occupancy and an Increased ADR
The Altstadt Hotel Hofwirt has already seen significant results from the partnership. In 2023, occupancy was increased by a further 19%, reports Stefan Hannemann. Compared to before the cooperation with HotelPartner, the average rate has even increased by 50%. This shows that the increase in occupancy at the Altstadthotel Hofwirt is no longer based on price reductions. The last few years have been the most successful ever – despite the three-month pandemic closure in 2022.
In addition to the hard figures, there has also been a noticeable change in the soft factors: the Hofwirt has developed a new self-confidence in its own product – the employees have realised that the hotel has a lot to offer. As a result, employees are now more likely to come to him with their own ideas, and impulses for innovation and digitalisation are being encouraged in the hotel. David Koller emphasises the importance of actively involving his team to reduce their fear of new things – including the professionalisation of revenue management with HotelPartner.
In the past, the current rates for the next few days had to be determined manually and communicated in a time-consuming process. Now every employee knows exactly which rates can be sold with a simple click.
Given these developments, both Stefan Hannemann and David Koller are positive about the future. The next common goals are to further increase guest reviews, the visibility of the hotel on online platforms and the direct booking rate. There will also be an increased focus on sustainability. Once the forthcoming renovations have been completed, the new pricing strategy will need to be crystallized and tested in the marketplace in order to make further improvements. Hannemann emphasises that it will be a challenge to improve on this successful year – a challenge he is happy to accept.
We look forward to continuing to support Altstadthotel Hofwirt in these next important steps. Thank you, Mr Koller, for sharing your vision for the hotel with us! Here’s to many more successes together!
Your HotelPartner Team