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  • Writer's pictureBernhard Lermann

Dynamic pricing model compensates for increased costs

Switch from fixed to dynamic pricing produces significant increase in sales for Seehörnle BIO Hotel & Gasthaus on Lake Constance

Seehörnle Hotel & Gasthaus
Photo: Seehörnle Hotel & Gasthaus

The Seehörnle BIO Hotel & Restaurant is a vacation hotel on Lake Constance in the middle of the nature reserve at the Höri Spitze in Horn, in the district of Constance. Currently, the hotel managed by Thomas Kopacevic provides its guests with 31 rooms for bed and breakfast. The inclusive business employs 30% to 50% of the staff with a severe disability. Currently, a total of 30 employees, including Thomas Kopacevic, director of BIO Hotel Seehörnle.

Since April 2023, the business has grown by eleven premium rooms. At Seehörnle, an Á la Carte BIO restaurant offers 54 seats, a terrace and various adjoining rooms for meetings and events. The business uses Protel as its PMS system and Vioma as its channel manager. Thomas Kopacevic uses, HRS, Expedia, and as online booking portals.

Thomas Kopacevic, Direktor des BIO Hotel Seehörnle
Thomas Kopacevic, Director of BIO Hotel Seehörnle (Photo: Seehörnle Hotel & Gasthaus)

Dynamic pricing model was essential to maintain profitability

Before the Seehörnle came to RateBoard, it operated with a rigid pricing system. The hotel classically had two seasonal periods, with the high season starting at Easter and the low season starting in November. Thomas Kopacevic realized that this price management was too inflexible. In times of very high demand, the price potential was not fully exploited, resulting in only a moderate increase in sales.

It was therefore the right step to work with a dynamic pricing system in order to be able to react quickly enough to demand and market changes and to be able generate maximum sales every day at the optimum rate and capacity utilization. The changeover to a dynamic pricing model was essential for maintaining the profitability of the business.

RateBoard RMS increases RevPar by 37 percent

The hotel saw a significant increase in revenue, especially during the peak season, as a result of the switch to RateBoard. A comparison between 2019, the last year of operations before the switch to a dynamic pricing model, and 2022 shows a 19 percent increase in revenue and a 21 percent increase in average daily rate. ADR increased by €18.97 over the comparable period. The successful use of the RMS system was most evident in the revenue per available room (RevPar). Here, an improvement of 37 percent or € 20.05 was achieved.

Through the use of the dynamic pricing system and the support of RateBoard, the Seehörnle was able to increase its sales enormously. Even during the Corona pandemic, the hotel achieved very good results in the months it was open.

Room rate management helps offset increased costs

Staff shortages are among the biggest challenges for BIO Hotel Seehörnle. In addition, dealing with rising costs in various areas, such as energy, food, and more, is becoming an increasingly important task. The right room rate management helps to compensate the rising costs in an appropriate way. RateBoard's system supports Thomas Kopacevic in choosing the right price.

Enormous time savings by switching to RateBoard

Onboarding with RateBoard started with preliminary meetings, followed by installation and training. Thomas Kopacevic works most often with the budget function: "It's a tool where I can take a closer look at the past and the current months, and it gives me very good information about whether I'm strategically right or need to change something."

The clear dashboard shows him all the important key figures in a very short time and he sends the prices to the sales channels. The time saved since the switch to RateBoard is enormous and gives the hotelier more freedom for his guests and employees.


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Bernhard Lermann

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