Rate Lock™ Case Study

Rate Lock™ Case Study


$1.93 Million in Additional Revenue


5 Properties | 12 Months | 11%–27% Improvement


Extended stay properties operate differently from traditional transient hotels.


A guest may remain in-house for weeks or months; rates may change over time, and adjustments made during the life of the stay can have a significant financial impact. A rate difference that appears small on a single night can become substantial when multiplied across hundreds of occupied nights.


That makes rate protection especially important in extended stay.


Gearco Rate Lock helps properties maintain control of the rate associated with an extended stay and reduce revenue leakage caused by unintended or unnecessary rate changes.


A 12-month review of five properties demonstrates just how significant that impact can be.



The Results


Across five properties, Rate Lock was associated with:


$1,929,360.73 in additional revenue


That represents an average of:


$385,872 per property


Every property in the study produced a double-digit revenue improvement. Individual property results ranged from:


11.39% to 26.74%


with an average property-level improvement of:


20.57%

12-Month Results


Property A — $670,847.60 additional revenue, 11.39% improvement

Property B — $331,150.35 additional revenue, 18.45% improvement

Property C — $319,541.00 additional revenue, 26.74% improvement

Property D — $317,608.82 additional revenue, 23.61% improvement

Property E — $290,212.96 additional revenue, 22.65% improvement

__________________________

Total / Average — $1,929,360.73 total, 20.57% average improvement


Five Properties. Five Positive Results.


The results were not dependent on a single high-performing property. All five properties experienced measurable improvement.


The largest revenue impact exceeded $670,000 in a single property. Even the lowest dollar improvement among the five properties exceeded $290,000 in 12 months.


Four of the five properties experienced improvement of more than 18%, and three exceeded 22%.


The results demonstrate how quickly rate leakage can compound within an extended stay environment and how meaningful the financial impact can become when rates are better protected.



Why Rate Protection Matters in Extended Stay


Traditional hotels generally operate around short stays. Extended stay properties do not.


Guests may remain for:

  • 14 days
  • 30 days
  • 60 days
  • 90 days
  • Six months
  • Or considerably longer


As the length of stay increases, so does the financial impact of every rate decision.


Consider a seemingly insignificant $5 nightly rate difference. Over a two-night stay, that difference represents only $10. Over 90 nights, it represents $450 on a single stay.


Multiply that across dozens or hundreds of long-term guests and rate leakage can quickly become a major source of lost revenue.


The challenge is rarely one dramatic pricing mistake. It is the accumulation of small differences across thousands of occupied room nights.



The Challenge


Extended stay rate structures can be complex. Rates may vary according to:

  • Length of stay
  • Property pricing strategy
  • Contract terms
  • Guest type
  • Market conditions
  • Promotional rates
  • Weekly or monthly pricing
  • Manual adjustments
  • Rate changes during extensions


Long-term guests may also extend repeatedly. Each extension creates another opportunity for the intended rate to change.


Without controls specifically designed for extended stay, properties can unintentionally reduce revenue from guests who are already in-house.


That revenue loss may be difficult to identify through traditional occupancy or ADR reporting because the room remains occupied and revenue continues to post.


The property sees revenue. What may be less obvious is the revenue it could have retained.



The Gearco Rate Lock Approach


Gearco Rate Lock provides properties with greater control over rates throughout the life of an extended stay.


Rather than treating every extension as an entirely new pricing event, Rate Lock helps protect the intended economics of the existing stay.


The objective is simple: keep the right rate attached to the right stay.


That gives operators an additional safeguard against unnecessary rate erosion while still supporting the operational flexibility required in extended stay.


Rate Lock becomes particularly valuable when guests remain in-house through multiple extensions or when property rates change while a guest is already staying.



The Financial Impact


Property A


Additional Revenue: $670,847.60  |  Improvement: 11.39%


Although this property recorded the lowest percentage improvement in the group, its scale resulted in the largest dollar impact. Rate Lock contributed more than $670,000 in additional annual revenue.


Property B


Additional Revenue: $331,150.35  |  Improvement: 18.45%


This property generated more than $331,000 in additional revenue with an improvement approaching 20%.


Property C


Additional Revenue: $319,541.00  |  Improvement: 26.74%


This property produced the strongest percentage improvement in the study, contributing nearly 27% improvement and approximately $320,000 in additional revenue .


Property D


Additional Revenue: $317,608.82  |  Improvement: 23.61%


The property generated more than $317,000 in additional annual revenue with improvement exceeding 23%.


Property E


Additional Revenue: $290,212.96  |  Improvement: 22.65%


Even the property with the smallest dollar impact generated more than $290,000 in additional annual revenue with improvement exceeding 22%.


Small Rate Differences Become Big Numbers


The power of Rate Lock is not necessarily found in one transaction. It is found across the entire lifecycle of the property.


Extended stay properties generate thousands of occupied room nights every year. When better rate controls are applied consistently across those nights, the cumulative impact can be substantial.


Across only five properties, $1.93 Million was generated in additional revenue during a single 12-month period.


That is approximately $160,780 per month across the five properties, or $32,156 per property per month on average.


The economics demonstrate why rate protection deserves the same attention as occupancy, ADR, and collections.


Revenue You Already Earned the Opportunity to Capture


Acquiring a new guest is expensive. Properties invest in:

  • Marketing
  • Online travel agencies
  • Sales
  • Promotions
  • Distribution
  • Staffing
  • Reservation technology


Once a long-term guest is already in-house, the property has accomplished the difficult part: acquiring and retaining the guest.


Allowing the rate associated with that stay to unnecessarily decline can reduce the value of a customer the property has already earned.


Rate Lock helps protect that existing opportunity. It is not about increasing workload. It is about protecting the economics of the stay already on the books.


Built for Extended Stay


Rate Lock reflects a fundamental difference between traditional hotel technology and a platform designed around extended stay.


For a transient property, a reservation may last one or two nights. For an extended stay property, the same guest relationship may continue for months. That changes everything.


Rate strategy, extensions, payments, accounting, collections and operational controls must account for the complete lifecycle of the stay. Gearco was designed around that lifecycle.


Rate Lock is one example of how extended stay-specific technology can directly influence property performance.


The Result


  • $1.93 Million — Additional Revenue
  • 5 Properties — All Showing Positive Results
  • 12 Months — Measured Performance
  • 11%–27% — Property-Level Improvement
  • $385,872 — Average Additional Revenue per Property
  • Five properties. Twelve months. Nearly $2 million in additional revenue.


Rate leakage can be difficult to see. Its financial impact is not. Gearco Rate Lock helps properties protect the rate, protect the stay and protect the revenue.


About Gearco


Gearco is a property management platform built specifically around the operational and financial realities of extended stay.


From rate management and guest lifecycle controls to payments, accounting, operational intelligence and property-level automation, Gearco helps extended stay operators manage the complexity that traditional property management systems were not designed to address.


Gearco — From system of record to system of intelligence.


Results shown are based on a 12-month analysis of five properties using Gearco Rate Lock. Properties have been anonymized. Individual results vary based on property size, occupancy, rate structure, length of stay, operating practices and other factors.

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