Embracing Technology at Makkah Hotels to Optimize Revenue Management and Save Time

Makkah Hotels and the Saudi Arabian Market

We recently had the pleasure of speaking with Alaa Beshir, Yield and E-commerce Manager at Makkah Hotel and Towers. Mr Beshir introduced us to the brand and told us more about how technology has helped them save time and stay close to the dynamic market of Saudi Arabia. 

Makkah Hotels, a prominent hospitality group in the heart of Makkah, Saudi Arabia, stands as a beacon of excellence and comfort for their guests. Strategically located just a five-minute walk from the sacred Al-Masjid al-Haram, the group boasts two impressive properties with 1437 contemporary rooms and suites and a prime location. This location is excellent for visiting the Holy Kaaba, Zamzam Well, Jabal al-Nour, and Makkah Museum that are in close proximity to the hotel. You can also find a shopping mall and local supermarket close to the properties as well as various international restaurants and lounges. 

Makkah Hotel and Towers feature a great selection of recreational activities, entertainment options, and modern business facilities. The hotel’s clientele consists of Muslim pilgrims from all over the world, but primarily from Southeast Asia, India, North Africa and the Middle East. Additionally, Makkah Hotels cater to European guests, especially during high seasons like the end of the year, when many Europeans seek to escape the cold weather. In addition, the brand has a great deal of recurring guests that regularly come back to enjoy a stay at the hotel.

Technological Advancements

Makkah Hotels has proactively integrated advanced technologies to enhance its operations and guest experiences. They utilize Opera Cloud for their Property Management System (PMS), TravelClick for channel management, Lighthouse (previously OTA Insight) for competitive market analysis, and Atomize for revenue management. These tools collectively ensure seamless management of the hotel’s extensive operations, enabling staff to focus more on guest satisfaction and less on administrative burdens.

Opera Cloud PMS

Opera Cloud, the PMS adopted by Makkah Hotels, has significantly streamlined hotel operations. It provides a robust platform for managing reservations, check-ins, check-outs, and other essential hotel functions. The cloud-based nature of Opera ensures data accessibility and security, which is crucial for the hotel’s day-to-day operations. The system’s comprehensive functionality supports Makkah Hotels in maintaining high standards of service and operational efficiency. Connecting Opera Cloud and Atomize has proven to be incredibly useful for Mr Beshir, as it saves a lot of time from the previous process of updating prices on all different platforms individually. 

“Integrating Opera Cloud and Atomize has been very valuable! These tools not only streamline our operations but also help us save time. By reducing the time spent on manual tasks, I can focus more on strategic initiatives.”

Alaa Beshir

Transforming Revenue Management

Before adopting Atomize, revenue management at Makkah Hotels was a manual, time-consuming process. The Yield and E-commerce Manager Mr Alaa Beshir described the laborious task of manually checking competitor rates, updating availability, and setting room prices, which could take up to 20 minutes per room type. This traditional approach consumed a lot of valuable time that could be allocated to other initiatives. 

The introduction of Atomize has been exceptional. Atomize uses advanced algorithms and real-time data analysis to optimize room pricing dynamically. This automation has reduced the time required to update rates which normally took 15-30 minutes every morning to just 2-3 minutes, allowing Mr Beshir to focus on strategic decisions.

“Before Atomize, updating our rates was a labor-intensive and manual process that could take a very long time. Now, with Atomize, we can adjust rates in  2-3 minutes, allowing us to focus on strategic initiatives rather than repetitive tasks.”

Efficiency and Time Savings

The integration of Atomize has led to significant time savings at Makkah Hotels. During peak seasons, when rate adjustments are frequent, the system saves between 15 and 40 minutes per update session. 

“During peak seasons, Atomize saves us between 15 and 40 minutes per day. This is very important to us given the shortened booking windows we see today, where guests book within a month of their travel dates.”

This efficiency is crucial, especially in a market where booking windows have shortened dramatically due to changes in travel behaviour post-pandemic. Guests now tend to book their trip on very short notice and close to a month of travel dates, necessitating agile and responsive pricing strategies.

“The pandemic has changed travel behaviors significantly. Guests now tend to book their stays within a month of their travel dates, making good pricing strategies more important than ever. Atomize enables us to stay ahead of these trends and adjust our rates dynamically.”

Revenue and Occupancy Rates

While specific figures were not disclosed, Mr Alaa Beshir confirmed that Atomize has positively impacted the hotel’s revenue per available room (RevPAR) and average daily rate (ADR). The ability to swiftly adjust rates ensures that Makkah Hotels remains competitive and maximizes revenue opportunities, especially during high-demand periods like Ramadan and Hajj.

Moreover, Atomize supports the hotel in maintaining high occupancy rates, which typically range between 80% and 90% during low seasons and reach 100% during peak times. The dynamic pricing model helps balance occupancy and room rates, ensuring optimal revenue generation without compromising guest satisfaction.

“Real-time data analysis provided by Atomize has given us a strategic advantage. We can monitor market trends and competitor rates instantly, ensuring that our pricing remains competitive and reflects current market conditions.”

Customer Support and Collaboration with Atomize

The partnership with Atomize extends beyond the software’s functionality. Makkah Hotels appreciates the robust customer support and collaborative approach offered by Atomize. The feedback loop between the hotel and the Atomize team has been productive, with suggestions for improvements being welcomed.

“The partnership with Atomize extends beyond the software. Their customer support is exceptional, and they genuinely value our feedback.”

Conclusion

Makkah Hotels’ journey towards technological advancement exemplifies the benefits of embracing modern solutions in the hospitality industry. By leveraging tools like Opera Cloud and Atomize, the hotel has streamlined its operations, enhanced guest experiences, and optimized revenue management. This proactive approach not only positions Makkah Hotels as a leader in the competitive Makkah market but also sets a benchmark for other hotels aiming to blend tradition with innovation.

Get ahead of the game with Atomize

Save hours on price optimization and maximize your revenue potential.