Silverado Resort and Spa is a luxury hotel in the heart of the world-famous Napa Valley, featuring fine dining, two PGA championship golf courses, tennis, a 16,000ft spa, and a variety of rooms. The Silverado Resort sits just an hour north of San Francisco and is in the heart of Napa wine country, neighbouring more than 400 wineries.
We sat down with David Gill, who has been Director of Revenue Management at Silverado Resort and Spa for three and a half years, to understand how he and his team have benefited from using Rate Insight and Revenue Insight. Read on to learn how OTA Insight's intelligent business tools have facilitated more accurate decision-making for the commercial teams at Silverado Resort and Spa throughout the recent crisis.
"You need complete data accuracy, and you get that with Revenue Insight, pulling data directly from your PMS system."
One thing we pride ourselves on is price indexing. Finding the measurement that enables you to properly position your hotel on a day-to-day basis against a core competitive set. Sometimes, because of the hotel we are, we're not able to compare against, say, a 100-room hotel in the city of Napa. We have to look for other property types as well.
With Rate Insight, we can create an environment that allows us to price index against the averages of a competitive set. We can create a pricing index for any given day, so each day of the week, I can see my average base price against this competitive set to move a certain volume of rooms. This is absolutely critical to our decision-making.
From a macro point of view, with the monthly reporting, we can dive in and see how we performed against the positioning we put in place from an index perspective. We can analyse this and ask ourselves if we need to adjust that daily indexing seasonally or by month to determine which direction we need to take to hit our goals.
We have only been using Revenue Insight for the past 60-days, so it's been fine-tuning what that macro view looks like. But the first core competency is making sure that you have the daily index pricing in place to measure productivity against it and go from there.
"We've been using Rate Insight for two years, and it's safe to say that due to the pricing intelligence we get out of it, we see a five, to seven, to one return on the cost that's fully measured."
We had to create a manual report to measure new bookings versus cancellations during the pandemic. We needed to get past the onslaught of cancellations and really focus on identifying new customers. When Revenue Insight was brought forth, we had the flexibility to immediately separate and understand what booking behaviour was taking place. Taking into account gross and net sales, and by which channel so that we could immediately identify the customer of today - where they're booking and how they're booking.
Cancellations are inevitable in this climate. New bookings are what matter. Revenue Insight can hone in on new bookings, the customers that are buying today. There is a critical need to understand that value.
You need to make smart decisions in this environment. Making intelligent decisions requires you to understand the difference between new booking behaviour versus net bookings. If you can't separate the two, then you don't know the customer that's coming in moving forward. The pandemic has led us down a path to get even smarter on new customer demographics, and that's where Revenue Insight has proved invaluable.
"When Revenue Insight was brought forth, we had the flexibility to immediately separate and understand what booking behaviour was taking place."
I have a family, a four-year-old boy, and truth be known, it's all about him. While we'd love to go international because we want him to be fully invested in international travel, we think our next trip is Disneyland, once it opens up. We don't know if it's Disney World if it's a Disney Cruise but something Disney for the family and something we can also enjoy. So that's the next trip.