Revenue is based on the rental of apartments for periods ranging from one night to several months, following the hotel model. Smartflats has implemented an active and dynamic Revenue Management strategy; this allows prices to be constantly adapted to market trends (high/low demand, high/low supply). This Revenue Management strategy is possible thanks to the use of software for monitoring and managing prices and competition.
The strategy employed by Smartflats is to maximize REVPAR (Revenue Per Available Room) by increasing the occupation rate of our apartments. We do this by offering a superior service to hotels, in terms of space and capacity, for a comparable cost (4 persons in a flat compared with 2 persons in a hotel room).
Smartflats' main competitors are hotels.
Smartflats' competitive advantage lies with its management and prices. By using intelligent technologies, Smartflats is able to manage 20 apartments spread over 3 cities with a small team.
As can be seen from the above table, Smartflats is more competitive than hotels as regards its REVPAR for a similar occupation rate. The REVPAR can be maximized by adopting a strategy of affordable pricing resulting in a certain volume of sales.