One owner, almost full-time, unpaid, for six apartments
Luise5 Boardinghouse · 6 apartments · Heidelberg
A listed boarding house, burdened with on-site servers, paper accounting and a payroll for a much larger property. Today €140,000 profit instead of €50,000.
01 · Starting point
The owner of Luise5 ran her boarding house the usual way: a standard PMS with channel manager, two and a half permanent positions at around €8,000 in wages per month, plus her own almost full-time, unpaid work, and €2,500 a month for paper-based accounting and local IT. Revenue of around €250,000 for six apartments was healthy, but portal commissions and the expensive operating structure ate most of the margin. Hanse Collective was to lift the result through dynamic pricing and let costs breathe with the seasons.
02 · Problem and solution
A staffing and admin structure for a much larger property, systems in the basement that needed constant care, and commissions that swallowed the growth.
Disproportionate staff and admin costs
€8,000 in wages per month for six units, plus expensive external accounting.
Staff becomes a variable cost
Permanent positions first went part-time, then to external providers. Costs now follow the season.
Software and servers on site
High maintenance effort for local IT and a classic PMS.
Cloud systems
On-site servers abolished, everything in the cloud, plus 24/7 service centre and back-office support.
High commission outflows
Heavy dependence on portals pushed the already mediocre, inflexible rates further down.
Dynamic pricing shifts volume to direct business
Almost all of the growth came through low-commission direct bookings.
03 · Result
Annual profit
€50k
Before
€140k
Today
+180% profit, on revenue of €330,000
Figures according to partner
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