In the second HappyTalk, we talk to Pierono Di Sanzo about his pricing strategy in current times. Pieriono is an experienced hotelier, with an affinity for Revenue management.
He is managing director of the health resort in Freiburg (Dorint Thermenhotel & Mooswaldklinik) and has accompanied Happyhotel from the start. Here you can find out how he currently sets his prices and what tips he has for hoteliers.
Our happyGuest Piero di Sanzo
Pierino di Sanzo from”Health Resort” in Freiburg (Dorint Thermenhotel & Mooswaldklinik) is an enthusiastic hotelier. As a learner hotel specialist Does he have an exciting career at home and abroad, right up to the hotel director run through. This also included business education at the hotel management school in Heidelberg. For five years, he has worked as a hotel manager at the Freiburg Health Resort, with an employee responsibility of over 200 people.
sebastian: You're close to Freiburg and yet you've stuck to your prices right from the start. Which strategy did you follow and did it prove effective in retrospect?
Pierino: Yes, I think that was definitely the right decision. In my opinion, if you do yielding, you can yield significantly lower or keep prices down in absolute low seasons. The term “price dumping” is sometimes a bit too negative for me. But for whom should we have reduced prices? We could have cut prices, but that wouldn't have helped us. The tourists were not allowed to travel and the business travelers were not there, did not come back in the summer and have still not returned now. We have decided to keep the hotel open despite the distance from the center of Freiburg, as we provide many services to the clinic. However, only achieve a capacity utilization of 8-10%. When business travelers come, I take the 130€ with me. In my opinion, that is the only sensible thing to do.
I scoured the OTA's today and found that the prices directly in Freiburg also seem to be stable.
sebastian: Last year in summer, you had an insane boom and you achieved record sales. All of a sudden, there was such a huge demand! How boldly are you now setting your prices in view of the reopening?
Pierino: When I think about last summer, I get a big smile on my face. Health, space and leisure have suddenly taken on a whole new meaning. We were able to achieve significantly longer stays. When I then looked at our price development, I realized that we could also have been a bit bolder.
We have used the last few months intensively and have revised our segmentation and pricing. As a result, we have actually increased our prices by 20-25%. It's going to be exciting now, but I'm sure we can sell it too!
I think it's important that we make a promise to our customers. The price they pay is justified because the service is worth it.
Pierino Di Sanzo — hotel manager at the health resort in Freiburg
The guest should not get the feeling that they are being pulled across the table or paying too much. He should come back again! The price we have now is fair for both sides.
sebastian: You also have a very large conference area. Do you expect this to restart soon with the appropriate hygiene measures? Or do you think it will be a long time behind?
Pierino: The conference business is undergoing a renaissance. It has changed a lot and will continue to change. Small meetings are becoming fewer and big events are becoming more.
Meetings with just a few people who come together in hotels for a few hours won't happen often anymore. This will mostly take place online.
Pierino Di Sanzo — hotel manager at the health resort in Freiburg
Pierino: What lasts and is also becoming more intensive are events for employees and customers. When you meet, you want to experience something! We also note this in our inquiries.
Even during the lockdown, we had inquiries for over 100 people for several days. Our conference facilities are not designed for that at all. Especially not with the current social distancing regulations. This must be compensated for in some way. I reacted boldly last year and immediately added 5€ to the package for hygiene measures. Customers have understood this and paid for it. Our guests have seen that we are responsible and that safety is ensured by our hygiene concept.
sebastian: You are very progressive in the area of digitization. What are your next planning steps?
Pierino: We changed our PMS two years ago and are currently in the process of redesigning our website. It will finally go live soon. Unser CRM We have now also connected (Customer Relationship Management System) to our PMS. There is always something to do, but you shouldn't overdo it.
Of course, we are primarily hosts and work with people. That is in the foreground. But where digitization can make processes easier, you should also use it.
Pierino Di Sanzo — hotel manager at the health resort in Freiburg
This includes QR codes for menus, for example. However, I am still careful with some tools with direct contact points with guests. The tools are all very good, but I don't think the market is ready everywhere yet. I'm still watching this very closely at the moment!
Nevertheless, you can already check in and out of us contactlessly and soon also book wellness services online. We also automate a lot in the background. This includes accounting, a time recording system, and an applicant and personnel management tool. Of course, all of this must also be paid for.
sebastian: What are your three tips that a hotelier should currently focus on?
Pierino: 3 tips? — Three hours aren't enough! Jokes aside. Find employees and retain employees These are two very important points. If we have achieved that, then we have a very high potential to achieve our To retain guests. And those are my three points. Anything else, whether that digitization is or a revenue management system. It is there to have time and fun with the guest.
Pierino Di Sanzo — hotel manager at the health resort in Freiburg
