Madeho

Madeho operates ten boutique properties and restaurants scattered between the left and right bank of beautiful Paris. The hip French group are specialized in the design, management and development of independent and under franchised mid-range and high-end urban hotel establishments.

We spoke with Commercial Director Emmanuel Kerrien about Madeho's approach to technology and revenue management.

Old-School Frustrations

"We had no Revenue Management System (RMS) in the past – we were using primitive tools provided by a revenue management consultancy. Then we switched to the Mews PMS and their Marketplace opened up a world of potential tools for us.

"At the end of the day, we were overpaying for a consultancy and we couldn't monitor the results of the service they were providing for us. Furthermore, there were always gaps and major time lags in rate changes. We needed a new solution.

"We chose FLYR for Hospitality for a number of reasons. Firstly, I had to find a system that was so intuitive that it could accommodate a range of different users. We have a mix of professionals working in the group and not all are experienced with revenue management. When you look at the dashboard it just all makes sense so quickly and you can navigate around it immediately, no matter your level of experience.

"Even our CEO said to me when he first saw the dashboard: 'Emmanuel, I've never really understood revenue management and how it works, but now with FLYR for Hospitality… I get it!'

"Then there are the efficiency gains. Before, I used to spend hours every day staring at competitor pricing and manually changing prices accordingly – perhaps three or four times a day. Now I can relax as the system is adapting prices to demand automatically and in real time."

Rapid Implementation

"The onboarding was super fast and simple and even though we didn't have the historical data that most RMS require, it wasn't a problem as that's not how their algorithms are built."

Instant Results

"When we switched on automated pricing we almost immediately saw much more pickup coming in. Even during the pandemic, we've outperformed. In Q1 2021 we had 55-60% occupancy vs 14-15% average in Paris.

"We've seen a 17% ADR boost on our suites – without FLYR for Hospitality we would have left that kind of money on the table."

"With a room type like 'Suites' we had always just set flat rates during weekdays as we just thought there was never much demand during the week. We had rates set at €240. But then we plugged in FLYR for Hospitality and the automated pricing kicked in. We now have weekday prices go up to €280 some nights! Without the decision engine's pricing, we would have kept believing that luxury products like that were only impacted by the leisure market."

Commercial Intelligence

"Now we have automatic reports generated every morning at 8:30am and that alone is saving me a lot of time in comparison to the old days of crunching all the numbers manually on an Excel sheet. Even our CEO now gets something automatically sent to him seven days a week with the data and reports he needs."