Noovy Case Study

Noovy is an all-in-one property management solution for thousands of independent hotels across Europe and abroad

Challenges

Noovy has been successfully helping hotels run their operations from a single platform: bookings, staff availabilities, housekeeping, you name it.

They have been wanting to enable their hotels to take payments through Noovy, further rounding out their product offering, making Noovy a one-stop-shop software solution for anyone running independent hotels.

The aim was to offer online payments via checkout as well as in-person payments via terminals. Noovy would be taking a cut on every payment - a platform fee - for facilitating the transaction, adding a valuable revenue stream to their existing business model, which had so far only consisted of subscriptions charged to the hotels.

Adding payments as a revenue stream also comes with its burdens for a platform such as Noovy. Price adjustments, reconciliation and other operations made it clear that they needed to monitor their revenue from this new channel closely, to be able to justify this product offering. As they rolled out payments to some of their hotels - who were delighted with the further consolidation of the product - and started taking a share of each payment, they realised that they had close to no control over their margins on card payments. They were in fact losing money on a lot of payments. ‘How should we price this payment with a corporate card and what about that one, with a card issued in the US?’ they asked themselves. The goal was clear:How can we price our payments fairly, while ensuring we don’t lose money as a result?

As they were being charged on an IC++ pricing model by their PSP, the fees varied on each payment. From the investigations they undertook, they saw that they were losing money on some payments and doing fine on others. But they felt far from confident in rolling their payments product out to all their hotels.

Solution & Results

Noovy implemented Clarity+ in just a few clicks and had instant access to margin calculations and fee breakdowns at an individual payment level. They could spot the payments they were losing money on within seconds, an operation that, by downloading the PSP’s fee reports and attaching them to payments, had taken them many hours before.

They clearly saw that if they had rolled out payments to all of their hotels without Revenew Clarity+, they would have eroded their existing SaaS revenue stream significantly!

Armed with this new insight, they were able to adjust some of their pricing profiles, to course correct the payments that would lose them money, while keeping prices for hotels fair.

Revenew also provided insights on hotel profitability across multiple dimensions. Noovy now knows exactly which hotels are their most profitable and which hotels are losing them money on any given time period. They can confidently address loss-making hotels and adjust their commission structures to improve their unit economics.

Beyond forecasting how profitable this new revenue stream will be over time, Noovy can now identify opportunities for their hotel base, further enabling them to thrive running their businesses, strengthening their platform as a whole.

Most importantly, they have a true payments partner that is looking out for their payment margins constantly.