How Can a City Hotel Increase RevPAR by 19% in 122 Days?

This example case study details strategies OMNI Hospitality Systems™ deploys to break luxury hotel's dependence on high-commission Online Travel Agencies (OTA), resulting in a 24% increase in direct bookings and a significant lift in profitability.

The Challenge: Stagnant RevPAR and Crippling OTA Fees

A leading luxury hotel in Kigali, a hub for international MICE and corporate travel, faced stagnant growth. RevPAR had increased by only 1.5% year-over-year, well below the market average. An operational audit revealed the core issue: over-reliance on OTA, which accounted for over 60% of all bookings.

This dependence can result in OTA commission fees consuming 22% of room revenue, eroding margins and giving third-party channels control over the hotel's inventory and pricing. Their own direct booking engine was underperforming, capturing less than 20% of total online reservations.

Our Approach: A 3-Phase Revenue Recovery Plan

We implement a targeted 12-week program focused on shifting the channel mix and optimizing pricing.

1. Deployed OMNI's OTA Counter-Strike Calendar

• Analyze the channel mix to identify the least profitable OTA partners and periods of high compression.
• Implement a dynamic inventory and rate allocation strategy, restricting OTA access during peak demand periods to drive traffic to direct channels.
• Overhaul the hotel's direct booking engine with a clear value proposition, including a "Best Rate Guarantee" and exclusive perks for direct bookings.

2. Execute a Dynamic Pricing Strategy

• Replace the hotel's static rate structure with a dynamic pricing model based on demand forecasting, competitor set analysis, and a city-wide events calendar.
• Train in-house revenue and reservations teams to manage rates actively, focusing on yield management and upselling techniques.

3. Built a Direct Corporate & MICE Sales Funnel

• Develop new, tiered packages specifically for corporate clients, NGOs, and conference organizers.
• Launch a direct outreach program to local and international businesses with a presence in Kigali to secure long-stay and group bookings outside of public channels.

Results Achieved

The strategy produced a significant and rapid financial turnaround:

Client Feedback

"OMNI Hospitality Systems™ provided a clear, actionable roadmap — not just theory. They gave us the tools and training to take back control from the OTAs. The 19% RevPAR increase speaks for itself. We are no longer just selling rooms; we are strategically managing our revenue."

Conclusion

This engagement proves that city hotels in competitive African markets can break the cycle of OTA dependence. By implementing a disciplined, data-driven revenue management strategy, it is possible to shift business to more profitable direct channels, enhance yield, and achieve substantial growth in RevPAR and overall profitability.