A major European hospitality group operating 10+ hostels and
botique hotels across the UK and mainland Europe experienced a
strong post-pandemic rebound, generating £20M+ revenue in 2023.
While group level numbers looked healthy, leadership recognized
that this aggregate view masked branch level inconsistencies.
Several locations were lagging in performance despite similar
brand standards, facilities, and corporate support.
To sustain long-term growth, management sought AEM Consultancy (Analyze . Eliminate . Maximize)'s expertise to diagnose underperforming branches, uncover hidden inefficiencies, and design targeted improvements that would uplift occupancy, revenue, and guest experinece across the network.
Deep-dive analysis revealed that two branches were consistently underperforming, with 5-6% lower occupancy rates compared to peer properties within the same chain. These performance gaps were not due to infrastructure limitations, but rather operational and market alignment issues that had gone unnoticed.
Key challenges include:
Without targeted intervention, these inefficiencies risked reducing lifetime guest value, weakening brand reputation, and eroding long term financial performance.
AEM initiated a structured diagnostic process combining time-series data analysis, competitive benchmarking, and on-ground operational assessments. Multiple data streams occupancy reports, booking logs, guest reviews, staff rosters, and local market data were analyzed to identify systemic and behavioral drivers.
Key Insights Uncovered:
AEM's competitor analysis across nearby hotels and hostels revealed:
This rigid structure caused travelers to choose competing hostels with better price-value ratios
Time series booking analysis showed that:
This resulted in artificial capacity shortages, lower occupancy, and revenue leakage.
AEM conducted convert and open audits at both branches. Findings included:
The customer experience gap directly impacted repeat bookings and ratings.
Branches relied heavily on central HQ policies, leaving them unable to: Adjust pricing based on real time demand, Respond to local competitor promotions, and Modify operational practices quickly
This slowed reaction time in a fast moving hospitality market.
AEM designed a targeted, branch level improvement framework, addressing both operational and strategic gaps.
AEM created a data backed pricing model tailored to each branch's: Market demand patterns, Competitor pricing fluctuations, Seasonal occupancy trends, and Local events and tourism spikes
Pricing autonomy was delegated to branch managers within controlled ranges, ensuring strategic flexibility without compromising brand policy.
To eliminate blocked beds and improve real time capacity:
This optimized inventory usage during peak demand.
AEM implemented a structured service improvement program:
Branches were granted controlled autonomy to: Adjust prices, Offer promotional bundles, Manage staffing levels dynamically, Respond to local market conditions.
This empowered on ground teams to make faster, more informed decisions.
AEM Consultancy (Analyze . Eliminate . Maximize) helped the hospitality chain uncover hidden performance gaps at the branch level and transform them into growth opportunities. Through localized pricing strategies, inventory discipline, service quality improvements, and competitive market alignment, the underperforming branches experienced quick and sustainable improvements in occupancy and customer experience.
The project reaffirmed that granular, localized interventions outperform centralized one size fits all strategies, helping the group secure its long term growth trajectory across Europe.
For expert insights and strategic solutions in optimizing hospitality operations, enhancing profitability, and driving sustained growth, please contact AEM Consultancy.