Harnessing the power of advanced revenue management technology and price automation, Hotel Opus 16 in Bergen, Norway, has experienced a significant surge in their performance metrics. « With Atomize’s assistance, we’ve pinpointed our optimal price elasticity, » revealed the owners of Opus 16. « This strategy significantly enhanced our performance indicators. In Q2 2023 alone, our ADR surged by 25%, and our RevPAR jumped by 32% compared to the same period the previous year.«
Hotel Opus 16 in Bergen, Norway, is an elegant boutique hotel, originally built as a bank in 1876, located in the heart of the city. Since its partnership with Atomize in May 2022, there has been a tangible transformation in its revenue generation. We had the opportunity to visit this exquisite property and speak with the Owner and Co-founder of Hotel Opus 16, Britt Marie Grieg, to delve deeper into their experience and journey with Atomize.
About Opus 16
- Company: Opus 16
- Location: Norway, Bergen
- Nr of rooms: 65
- Type of property: Hotel Opus 16 is a high-end, modern upscale boutique hotel that reflects a tasteful combination of classic and contemporary design.
Britt Marie and her husband, Alexander Grieg, have owned and operated the hotel since 2017 when they seized the chance to take it over. Both bring invaluable experience to the table, having previously worked as Hotel Managers. Moreover, Alexander has a unique connection to the building; he is a relative of the renowned Norwegian composer Edvard Grieg. This historic building holds significance as it once served as the bank of Edvard Grieg’s family.
Over the course of a year, the couple renovated the property, transforming it into a high-end, modern upscale boutique hotel. It boasts 65 individually designed rooms, complemented by a restaurant and bar. The design of Opus 16 harmoniously blends contemporary elements with its historical roots, ensuring the preservation of the building’s rich history. In 2018, they proudly opened their doors to welcome guests from all over the world.
About Opus 16
Opus 16 is located in Vågsallmenningen, a central square in Bergen. This prime location offers guests easy access to many of the city’s main attractions, such as the famous Fish Market, Bryggen (a series of Hanseatic commercial buildings lining the eastern side of the Vågen harbour), and the Fløyen funicular. The central location means that many of Bergen’s shops, restaurants, and cultural spots are within walking distance.
The hotel itself is rich in history and heritage and has left an indelible mark on Bergen’s cultural scene, and the hotel pays tribute to Edvard Grieg’s legacy.
Hotel Opus 16 reflects a tasteful combination of classic and contemporary design. The rooms and public areas retain many original architectural details, like ornate mouldings and high ceilings, but are furnished with modern amenities to ensure guests’ comfort.
The hotel provides a range of amenities including a fitness centre, meeting, and event spaces, and a dedicated concierge service to assist guests in planning their Bergen experience.
Hotel Opus 16 is more than just a place to stay; it’s an experience. It delivers an extravagant and culturally journey through Bergen’s intricate tapestry of history and modernity, making it a favourite choice for travellers who appreciate both heritage and modern comforts.
Navigating High and Low Seasons
Opus 16 caters primarily to two main guest segments: the local Norwegian market and international tourists. These two markets present distinct demands. In many ways, they complement each other, necessitating that the hotel be adept at serving both. The depreciation of the Norwegian currency against the Euro and USD in the past year has resulted in a significant uptick in international tourism. From May to October, a staggering 90% of their guests hail from abroad, predominantly sourced through premium international travel agents.
During November and December, Opus 16 enters its low season marked by reduced occupancy. However, this period coincides with a surge in Food & Beverage (F&B) demand, especially from the local market—spanning both individual and business guests, as well as events. Conversely, the summer months of June through August represent the hotel’s peak season, bustling with both local and international visitors.
While the periods of high and low demand have remained largely consistent, there are notable differences in booking behaviours and pricing expectations. Local guests typically have a shorter booking window and varying willingness to pay compared to international tourists. Furthermore, pricing expectations can differ even among international markets.
Britt Marie acknowledges the invaluable assistance of Atomize in this dynamic landscape. She credits the platform for empowering them to adjust room rates responsively to demand fluctuations. Leveraging insights from Atomize’s market demand data ensures they remain agile, adapting to changing demands across different guest segments.
The Pandemic Years: Embracing a Technological Revamp
The years 2020 and 2021, characterized by the global pandemic, were incredibly challenging. The team at Opus 16 exerted considerable effort to attract whatever demand was available. Recognizing the slowdown as an opportunity, they decided to evaluate their existing tech infrastructure.
Opus 16 realized that their legacy property management system was a bottleneck, hindering hotel tech integrations and putting them at a disadvantage. With that background, they decided to move to Mews, a more modern and innovative PMS provider.
The user-friendly nature of the Mews platform, coupled with its automation capabilities, allowed the team to redirect their energies towards crafting unparalleled guest experiences.
From Price Recommendations to Full Automation: The Evolution of Opus 16’s Revenue Strategy
Having successfully integrated Mews into their operational framework, Opus 16 recognized a crucial aspect of their business that needed further refinement: their revenue management strategy. A key challenge they faced was the labor-intensive and manual approach to determining prices. This is where Atomize, a preferred RMS on the Mews Marketplace and championed by Mews representatives, entered the picture.
Launched in May 2022 Atomize empowered Opus 16 with a revolutionary real-time revenue management system. More than just automation, the platform delivered a comprehensive solution, constantly gathering and analyzing data, and adjusting prices throughout the year, even projecting as far as 365 days ahead. The requirement for manual oversight was significantly reduced.
Delving deeper into Opus 16’s journey, their transition from merely relying on price suggestions to adopting full-blown automation is noteworthy. This bold leap wasn’t just about modernizing processes; it was closely tied to tangible business results. By harnessing the synergistic blend of enhanced Average Daily Rate (ADR) and increased occupancy, they’ve witnessed a dramatic surge in revenue generation. Their story underscores the transformative power of embracing automation and how it can catalyze remarkable improvements in both efficiency and profitability.
The synergy between Atomize and Mews ensures that all pricing adjustments are instantaneously mirrored in the PMS. Additionally, Atomize’s robust data analysis and multi-property reporting tools empower the Opus 16 team with actionable insights into their performance.
Sophisticated Pricing Boosts ADR and RevPAR
A standout feature influencing the selection of Atomize is its ability to determine a hotel’s price elasticity in relation to competitors—a core element of Atomize’s pricing algorithm. By intricately analyzing comp set data, Atomize assists its customers in striking the perfect balance between optimizing occupancy, average daily rate (ADR), and overall revenue.
Opus 16, an upscale hotel in Bergen, Norway, stands as a testament to this.
For a high-end establishment like Opus 16, which operates within Bergen’s upscale, top-tier segment, sustaining a high ADR is pivotal to upholding and amplifying the brand’s prestige. Using Atomize, Opus 16 has not only maintained its ADR but also witnessed significant growth in both ADR and RevPAR metrics.
« With Atomize’s assistance, we’ve pinpointed our optimal price elasticity. This strategic approach has bolstered our performance indicators considerably. In Q2 2023 alone, our ADR surged by 25%, and our RevPAR jumped by 32% compared to the same period the previous year”Britt Marie Grieg,
Owner and Co-founder of Hotel Opus 16
Both 2022 and 2023 have been financially robust years for Opus 16, presenting Britt Marie and Alexander with the opportunity to further invest in their establishment.
Come early 2024, they plan to briefly close the hotel for renovations. The aim is to revamp the bar and restaurant area, transforming it into a more spacious, welcoming environment for guests. Additionally, a state-of-the-art kitchen will be constructed to elevate and streamline the restaurant’s service.
As Opus 16 continues to intertwine its rich history with modern technological advancements, it sets a new standard for upscale hotels worldwide. With an unyielding commitment to guest experience and innovation, there’s no doubt that this Bergen gem will shine even brighter in the years to come.