Red Roof Inns Implements State-of-the-Art Revenue Management System

Strategic Insights -

Red Roof Inns, Inc., a leading economy lodging chain, has announced the chain-wide implementation of TEMPO, a state-of-the-art revenue management system created by Talus. TEMPO uses real-time inventory controls, analyzing current and historical occupancy levels, and forecasts demand to maximize reservations and revenues. The system provides data to inn managers on optimal room pricing and makes recommendations on lengths of stay and overbooking opportunities, aiming to increase occupancy and revenues. TEMPO has shown promising results, with Red Roof Inns in Albany, N.Y., and Enfield, Conn., experiencing average increases of 1.6 percent and 3.8 percent in weekly revenues, respectively.

Key Takeaways:

  • TEMPO is a fully integrated revenue management system created by Talus that analyzes current and historical occupancy levels to forecast demand and maximize reservations and revenues.
  • The system uses real-time inventory controls and makes recommendations on optimal room pricing, lengths of stay, and overbooking opportunities.
  • TEMPO has shown promising results, with Red Roof Inns in Albany, N.Y., and Enfield, Conn., experiencing average increases of 1.6 percent and 3.8 percent in weekly revenues, respectively.
  • One Red Roof Inn has seen an average increase of 18 additional rooms sold per week since implementing TEMPO.
  • TEMPO is a unique level of forecasting in the hotel industry, making Red Roof Inns the first hotel company to use this technology.
  • Talus is the world leader in developing advanced revenue management systems for companies worldwide, including industry leaders in the airline, hotel, travel, and leisure sectors.
  • Red Roof Inns is one of the leading economy lodging chains in the United States, with over 265 properties and 30,000 rooms in 36 states and the District of Columbia.

Statistics:

  • TEMPO has shown average increases in weekly revenues of 1.6 percent and 3.8 percent at Red Roof Inns in Albany, N.Y., and Enfield, Conn., respectively.
  • One Red Roof Inn has seen an average increase of 18 additional rooms sold per week since implementing TEMPO.
  • Red Roof Inns has over 265 properties and 30,000 rooms in 36 states and the District of Columbia.

Sources:

  • Red Roof Inns, Inc. press release dated June 2, 1998.
  • Talus press release or documentation.
  • Wieck Photo Database ( available via phone at 214-392-0888).
  • Red Roof Inns website: http://www.redroof.com/
  • http://www.prnewswire.com