Case Study –  Fattal Hotel Group

Case Study

Fattal Hotel Group


Pilot Hotels Success Leads to Enterprise Adoption

Pilot Hotels Success During Pandemic Leads to Enterprise Adoption

Fattal Hotel Group is one of Europe’s fastest growing hospitality brands, with more than 230 locations stretching across 19 countries. Fattal’s expansive portfolio includes a diverse range of properties able to cater to any guest preference- from ultra-exclusive resorts to niche urban experiences.

With each of its locations committed to achieving 100 percent satisfaction and providing each guest with a unique experience centered on local flair, Fattal continues to encounter impressive growth.

Having recently raised €315 million, the brand has plans to open an additional 30 locations mostly throughout Western Europe.

Challenges

Since its initial founding in 1998, Fattal Hotel Group has earned a reputation for effective distribution processes that have seen the company maintain higher occupation rates than any of its competitors regardless of the time of year. Key to Fattal’s high guest traffic numbers is its strategy of overbooking standard room categories to ensure maximum occupancy and revenue performance.

 

However, attempting to maintain the highest possible level of occupancy for each of its 230+ properties in 19 countries does prove to be a complex challenge for any organization also aiming to optimize upselling and cross selling efforts. 

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Stalling the improvement of company-wide performance was the lack of time that employees have to compile and analyze data that could point the way to improving post-booking sales opportunities in real-time. 

Such efforts were only further complicated due to the now widespread need to upsell or cross sell offerings based on the unique interests of each individual guest.

The Goal

Fattal Hotel Group sought out a solution that could ensure consistently high upselling performance without leading to overbooking situations where room upgrades are given away for free. To achieve this goal while sidestepping potential risks, the company notably desired the adoption of robust technology that would promote only those offerings that a hotel has available to supply from its inventory.

 

 

For ancillary services such as onsite dining, Fattal also sought the ability for a solution to automatically determine if a restaurant is anticipated to operate at less than full capacity. In such circumstances, Fattal desired the ability for a platform that could promote meal plans where and when appropriate in order to consistently drive up maximum revenue performance.     

A hospitality company benefiting from having one of the industry’s leading and most experienced digital teams, Fattal Hotel Group also recognized the importance of not spamming its guests with emails that are unrelated to their interests and experience preferences. Instead, the company set itself the goal of implementing upselling and cross selling strategies utilizing highly targeted communication. This would ensure that the right promotions are always sent to the right guests, maximizing both guest satisfaction and sales conversions as a result.

The Product

After performing research into various solution options, Fattal Hotel Group identified UpStay with its advanced upselling technology as the ideal solution for its global business needs. Using the UpStay platform and its ability to integrate with a hotel’s systems, Fattal was able to rely on advanced AI to automatically identify and push promotions by micro-segment and in line with individual guest interests.

 

With no monthly subscriptions and only a nominal fee with each successful upsell, UpStay’s industry-proven capabilities not only ensures maximum success and profitability for Fattal’s promotional outreach efforts, but does so without representing additional work for staff. By integrating with a property’s PMS, UpStay automatically updates a hotel’s available inventory in real-time both on direct booking sites and on OTAs- no risk of overselling assets and no need to give away free upgrades to affected guests.

 

UpStay’s impressive record of converting at least 20 percent of guests into successful upsell purchases is achieved due to the solution pushing promotional messaging to guests prior to arrival and while itineraries are still being planned. Fattal can also leverage UpStay’s innovative bidding feature to ensure that guests perceive value from promoted offerings and to uncover hidden demand for room and ancillary service upgrades. Using the feature, each guest can select the amount they are willing to pay for a room upgrade or service, with the offering ultimately going to the highest bidder. This ability ensures that properties always sell their assets at the highest possible profit, while also preventing hotel efforts to upsell during the time of booking from being undermined.  

The Results

 

Following the deployment of UpStay at 10 of its Israeli properties as part of a pilot trial, Fattal Hotel Group was able to experience positive results immediately.

In contrast to other upselling methods and strategies previously deployed, UpStay was credited with generating five times the conversion rates that Fattal typically experienced.

Significantly for the organization’s goals, UpStay was able to generate room upgrades for categories that were still unsold and nearing check-in times, minimizing the need to provide free upgrades.

 

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Following a six-month trial period, Fattal Hotel Group has since moved forward with adopting UpStay for all of its locations in 19 countries around the world. Using a combination of UpStay upselling abilities including room upgrade, stay extension and meal plan enhancement modules, Fattal Hotel Group has already gone on to experience a 10 percent increase in profit, while ADR and guest satisfaction scores continue to reach new heights