Model Case 01 — Hotel & Ryokan
How a fully booked, long-established ryokan became a stay people choose
A revenue-redesign approach, imagined for a small Kyoto ryokan stuck at high occupancy and low rates.
Estimated span: 12–18 months, working alongside you
Challenge
Fully booked, but no profit left
Approach
Give price a basis and redesign each channel's role
Result
A profit structure with higher rates and more direct bookings
Read how we'd approach it
- Context
- A family-run ryokan of around ten rooms. The location and building have real charm, and occupancy runs near 90% through the year. Most bookings come via domestic and international OTAs, and rates have sat unchanged for nearly a decade.
- Challenge
- Despite staying full, once commissions and labour are deducted the profit is razor-thin. There's a psychological wall — "we want to raise rates but fear guests will leave" — and with no experience of testing price, no one knows what the right level is.
- Approach
- Shift from "protect occupancy" to "choose profit and clientele," designed from both the data and the story. After making the current state visible through booking data, we re-articulate the ryokan's value in words and photos, putting giving price a basis first.
- Execution
- Reviewing booking pace together each month, we phase in rate revisions by season and day of week. In parallel, we renew the official site's English information and photography, and design a reason to book direct (the best inventory, careful communication before and after the stay). OTAs are narrowed to their role as "where new guests first meet you."
- Intended outcome
- A state where rates move toward a level that matches the ryokan's real worth, and a rising share of direct bookings changes the profit structure with the same number of rooms. Numeric targets are set together from each property's starting point (we'll walk through actual figures in an individual consultation).
- What this pattern tells us
- A failed rate increase is almost always a failure of order, not of amount. Move price alone, skipping the basis, the presentation, and the testing, and it won't stick. Keep the order, and the smaller the property, the faster the structure changes.