Profitroom, a leading hospitality technology provider, took home the Hospitality Technology Provider award at the FEDHASA Hospitality Awards 2024. The company’s award-winning booking system is changing the game for South African hotels, boosting revenue and improving guest experiences.
Since entering the South African market just three years ago, Profitroom has grown rapidly to partner with over 300 local hotels and onboard a 10-person team based in Africa. Their hospitality solution is a key driver of this expansion, aligning with FEDHASA’s mission to foster a thriving and sustainable hospitality industry.
“Revenue management and optimisation are critical focus areas for hoteliers,” said Lee-Anne Singer, FEDHASA Cape Chairwoman. “We’re proud to honour Profitroom for their trailblazing technology that empowers our members to maximise their revenue potential through data-driven strategies and a guest-centric approach.”
Recognising industry support
While the FEDHASA awards shine a spotlight on exceptional service across the hospitality industry – from housekeeping staff to industry leaders – this year’s event also highlighted the vital role of service providers and suppliers. Profitroom’s win underscores just how much value outsourcing and technology can deliver to an industry grappling with skills gaps, boosting efficiency and guest satisfaction.
“We are truly humbled by this recognition from FEDHASA,” said Leigh Myles, Senior Business Development Manager for Africa at Profitroom. “Our core mission is to be a true partner in the success of our clients. We’re deeply invested in improving their profitability and growth. Everything we do – from our product development to our exceptional customer support – is geared towards maximising revenue, streamlining operations, and enabling hoteliers to curate incredible guest experiences.”
The power of data, upselling and direct bookings
At the heart of Profitroom’s offering is their award-winning booking engine, providing a seamless platform for hotels to create enticing packages, offer personalisation like separate child rates, and upsell a wide array of value-added extras. The company’s comprehensive suite of products is meticulously designed to help properties capture new revenue streams while fostering stronger relationships with guests through powerful personalisation capabilities. Myles cites an example where a client’s personalised stay offers, like a Land Cruiser airport pickup service and a romantic package accounted for an additional 15% percent in revenue.
“We have a worldwide award-winning booking engine. We have 50 developers who are continually working on it, developing it from our customers’ needs. When a customer has a need, we note that need, prioritise it in our development queue, and then the development happens. It’s a really brilliant model,” said Myles.
Samantha Williams, Commercial Director at Profitroom, elaborated on the significance of personalisation, “The biggest gap in technology is trust. People are hesitant to trust what they cannot see. With Profitroom’s solutions, hoteliers can build trust through transparent data utilisation and tailored guest interactions, ultimately driving stronger loyalty and revenue.”
Regarding cost savings and revenue growth, a distinction exists between the two, explained Myles. Cost-saving strategies focus on sustainability and operational efficiency, whereas revenue growth strategies aim to expand existing revenue streams and capitalise on new opportunities.
A key area where Profitroom shines is in driving direct online bookings for hotels, a critical revenue stream in an era where third-party online travel agencies (OTAs) command hefty commissions. As Myles pointed out, “OTAs are a primary destination for travellers researching accommodations. However, Profitroom’s focus lies in helping clients retain more revenue. By promoting direct bookings through exceptional booking engines and personalised pre-stay communication, hotels can maximise their earnings.”
The tangible impact of Profitroom’s solutions is evident in their expanding client base. Within just three months, Sun International generated over 1 million rand in direct online bookings, thanks to an increase of 37% in direct bookings. The renowned Piermont resort leveraged Profitroom’s upselling capabilities to drive an additional 500,000 rand in monthly revenue through their popular rose petal turndown service package.
Solutions for every pain point
“We’ve achieved remarkable results by combining our passion for hospitality with innovative technology,” Myles affirmed. “Our goal is for our clients to thrive. We know the beating the hospitality market has taken, and we know what South Africans are going through with load shedding. Our hoteliers need more revenue, and they need stronger revenue.”
Profitroom’s commitment to its clients is further exemplified by its unique fee structure and supportive approach. “We’re one of the only hospitality tech companies where we decided to waive setup fees,” Myles noted. “We did away with it because we want to empower our customers. We even grew during COVID-19 by trying to help clients, developing products like a voucher system so hotels could retain revenue without losing bookings.”
“When approaching a new partner hotel, we always start with their pain points,” Myles explained. “We ask how it’s going, if they’re happy, if they’re getting the results they need. If not, then what are they looking for? How can we provide additional help? There might be manual processes that need optimisation or staffing issues where our technology can fill skills gaps.”
Looking ahead, Profitroom plans an aggressive expansion strategy targeting key markets like Namibia, Botswana, Kenya, Tanzania, and Malawi. “We see South Africa as being the central hub of operations for the rest of the continent,” Williams shared. “In East Africa, we’re already working with properties in Kenya, Tanzania, and Rwanda.”
Myles concluded: “It’s not just about revenue figures; we genuinely care about the community and giving back. Our team is passionate about providing access to education in this industry facing skills gaps. This recognition from FEDHASA inspires us to continue pushing boundaries and being a force for positive change in African hospitality.”
“Profitroom epitomises the innovative spirit and excellence we aim to nurture in South African hospitality,” concluded Singer.
For more information, www.Fedhasa Awards
