Project Description

Bar-Blue

Turning Around Hotel Performance

A well-known family run Hotel located in the West of Ireland was rapidly losing business and market share as a result of the economic downturn of 2008 and 2009. Profits were reducing fast as were the businesses ability to pay its creditors and other financial commitments due to reducing cashflow caused by loss of business.

First Western developed a new strategy for the client’s business to help them rebuild business and retain their market position and put in place an optimal product mix.

This included:

  • A detailed analysis of all cost and revenue centres
  • Identification of significant costs savings and elimination of same
  • Refinement of the product mix to generate a more attractive and value for money proposition for customers.

We also redesigned the core operations model, that included closing of the premises for non-peak periods, addition of product packages with third party operators and mining the hotels database of customers for marketing and promotions opportunities.

As a result, over a 12 month period the hotel turned around from an 18% loss on turnover to 7% profit, to 15% the following year. Occupancy levels achieved were ahead of the national averages and the repositioning of the product allowed them to increase room rates faster than average.