For years, a premier corporate housing provider has worked with companies of all sizes throughout Chicago and is an expert at filling the needs of corporate travelers. Similar to most corporate housing providers, they experience gaps in bookings during peak months and slowdowns during offseason months. Such elusive challenges negatively impact their bottom line. To solve this problem and maximize revenue, this corporate housing provider engaged ApartmentJet in late Spring.
The corporate provider began piloting ApartmentJet in April 2018. They proposed three main goals:
- Backfill vacancy between corporate stays
- Maximize revenue for a unit where a corporate client canceled at last minute
- Utilize availability reports to allow reservations only during specific blocks of days.
Fill the Gaps Between Corporate Stays
The main need during the busy summer months was filling gaps between reservations booked for the provider’s corporate clients. ApartmentJet worked closely with the provider’s team to strategically open the calendar for select units and fill those costly vacant days. The two teams spoke on a regular basis as calendars change frequently, and the ApartmentJet team required flexibility to meet the provider’s needs. Throughout the summer, ApartmentJet was able to drive over $30K in additional net revenue to the corporate housing provider by filling short-term vacancies.
Help with Last Minute Corporate Cancellation
The provider had a rare situation where a corporate client canceled a long-term stay at the last minute. It left an expensive two bedroom unit with two months of vacancy. ApartmentJet was asked to fill the unit as many nights as possible during the seven week period. ApartmentJet listed the unit and, in a period of seven weeks, generated nearly $12K in net revenue for the provider.
Use Availability Reports for Specific Days
Corporate housing is tricky with constantly changing reservations and availability. ApartmentJet worked directly with provider’s team to understand their vacancy gaps and open the calendar only on specific days. Additionally, ApartmentJet would confirm availability with the provider’s team before accepting reservations, as it’s common in the corporate housing world for existing guests to extend or new guests to book outside the ApartmentJet platform.
- Backfill vacancy between stays
- Help generate revenue for a last minute corporate cancellation
- Use availability reports to fill specific vacant days
- ApartmentJet manages multiple listings on short-term channels with short lead times
- Concierge team supports property inquiries and potential guests seven days a week
- ApartmentJet team works with the client’s team to fill gaps and generate revenue
Results in Four Months
- From April to August generated an additional $44,000 in revenue while filling gaps
- Last minute vacant unit, generated nearly $12K in less than 2 months
- Maximized revenue using price optimization for an average $225 per night and rates as high as $450 per night.
- Booked 66 reservations for a total of 228 nights.
- Zero additional client expense has been added which means every dollar goes directly to the bottom line