Dalhousie Castle's Journey from
Legacy Systems to Market Leadership
Online revenue doubled
ADR increased 21%
Automated guest communication
429% loyalty growth
Commission costs fell 7 percentage points
increase in ADR
Online Revenue
Loyalty growth
7 Hospitality is a forward-thinking collection of unique hotels across distinctive locations. Among their portfolio, Dalhousie Castle stands out, a majestic 13th-century castle outside Edinburgh, combining historic grandeur with modern comfort.
But here's the thing about running an 800-year-old castle: your heritage can be your greatest strength and your biggest challenge all at once. The question becomes not whether to modernise, but how to do it without losing what makes you special in the first place.
The Starting Point: April 2021
When Dalhousie Castle began its partnership with Profitroom in April 2021, the property faced challenges familiar to many heritage hotels. Legacy systems couldn't keep pace with modern guest expectations. Manual processes consumed staff time that should have been devoted to hospitality. OTA dependency was growing, taking larger chunks of revenue and weakening direct relationships with guests.
The team knew change was necessary. What they didn't know was how transformative that change would become.
Phase One: Building the Foundation
The first phase focused on establishing a comprehensive technology infrastructure that would support growth for years to come.
The Technology Stack
Dalhousie Castle implemented a complete suite of integrated solutions:
⬢ Booking Engine 360: Modern, mobile-optimised interface with real-time availability and seamless upselling
⬢ Channel Manager: Real-time inventory synchronisation across all distribution platforms
⬢ CRM & Email Marketing: Unified guest data enabling targeted campaigns and personalised communication
⬢ Personalised Offers: Dynamic promotion management based on guest behaviour and preferences
⬢ Loyalty Programme: Dedicated platform for relationship building and repeat guest engagement
⬢ ResDiary Integration: Seamless connection between accommodation and restaurant bookings
These weren't isolated tools, they formed an interconnected ecosystem where data flowed between systems, creating increasingly powerful capabilities.
The Results: Five Years of Growth
The impact of this technology foundation became evident as the team mastered the systems and refined their approach.
Direct Channel Transformation
The booking engine's superior user experience made the direct channel the path of least resistance rather than an afterthought. Guests discovered the benefits of booking directly, better rates, more flexibility, personalised service, and loyalty rewards, and responded accordingly.
"The difference was immediate," says Philip Egan, General Manager at Dalhousie Castle. "Instead of guests calling to confirm availability or asking questions about room options, they were just booking. Confidently. Independently. It freed up our team to focus on creating exceptional experiences rather than processing reservations."
⬢ Direct bookings are up 19% from April 2021
⬢ Online revenue has increased by 26% since April 2021
Operational Efficiency
Manual channel updates that had consumed hours of staff time daily were eliminated. The risk of overbookings and rate discrepancies that damage reputation disappeared. Staff capacity was redirected from administrative tasks to guest service and strategic initiatives.
Data-Driven Decision Making
For the first time, the team had comprehensive visibility into guest behaviour, booking patterns, channel performance, and revenue dynamics. This visibility enabled smarter decisions, though they recognised they weren't yet fully optimising based on these insights.
Strategic Commission Management
As direct bookings grew, the team gained negotiating leverage with OTAs. Commission rates began trending downward whilst maintaining valuable channel relationships for reach and visibility.
⬢ Overall Commissions have been reduction by half
⬢ In the last year there has been a 20% in ADR
Loyalty Foundation
The loyalty programme began building a base of repeat guests and brand advocates through personalised rewards and recognition, moving beyond generic point systems to meaningful relationship building.
⬢ In the past 6 months we have achieved a 62% loyalty programme sign-up rate during the booking journey
Dalhousie Castle was performing well, significantly better than when the partnership began. Guest satisfaction was high, revenue was healthy, and operations were efficient.
But the leadership team recognised that performing well and performing optimally remained two different things. There was untapped potential in their technology and data that they weren't fully capturing.
Phase Two: Strategic Acceleration
The decision to activate RevenuePro in June 2025 marked a pivotal shift, from having excellent technology to having strategic expertise actively optimising that technology.
What Changed
RevenuePro wasn't another software product. It was dedicated revenue management expertise working continuously to maximise the technology foundation already in place. Think of it as the difference between owning professional kitchen equipment and having a Michelin-starred chef using that equipment.
"RevenuePro felt like gaining a colleague who knew more than anyone on our team about pricing strategy," explains Philip Egan, General Manager at Dalhousie Castle "Not in a threatening way, in a liberating way. Suddenly we had expertise working alongside us every day."
The service combined sophisticated technology with human intelligence, analysing 200+ data points, monitoring competitive dynamics, forecasting demand patterns, and providing proactive recommendations that the team could act on with confidence.
Five Key Improvements
1. Strategic Pricing: Dynamic pricing strategies replaced reactive discounting. The team gained conviction to hold rates when market conditions supported it and adjust strategically when needed, not panic when booking pace slowed.
Result: ADR increased 21% year-on-year whilst maintaining strong occupancy.
2. Cart Abandonment Recovery: Automated remarketing campaigns reached guests who'd started bookings but not completed them, using personalised incentives and strategic timing to recover revenue that would have vanished.
"Watching those recovery campaigns work felt like magic," admits Philip Egan, General Manager at Dalhousie Castle. "People who'd given up were coming back and completing reservations."
3. Direct Booking Acceleration: Better pricing strategy, recovered abandoners, and personalised offers created powerful momentum. Online revenue doubled in just three months (June-September 2025).
4. Commission Optimisation: Strategic channel management reduced commission rates dramatically:
- ⬢ Booking.com: 23% → 16%
- ⬢ Expedia: 24% → 13%
- ⬢ Overall blended rate: down 15 percentage points
5. Loyalty Transformation: The loyalty programme, now optimised through strategic automation, delivered extraordinary results:
- ⬢ 429% growth in enrolment
- ⬢ 77% of direct bookings from loyalty members
- ⬢ Substantially increased repeat booking rates
The Results: Five Years of Partnership
The cumulative impact of the Profitroom partnership tells a compelling story of sustained improvement and strategic evolution.
Revenue Growth
Online revenue doubled during the June-September 2025 period alone, demonstrating the accelerating momentum as technology foundation met strategic expertise. Year-on-year ADR strengthened by 21%, showing this wasn't about discounting for volume but commanding appropriate value.
Cost Efficiency
Commission costs dropped 15% points across the blended rate. For Dalhousie Castle, this represented tens of thousands of pounds shifting from OTA commissions to property profit, money that could be reinvested in guest experiences, staff development, and property enhancements.
Beyond the immediate financial impact, lower commission dependency meant greater control over guest relationships, pricing strategy, and market positioning.
Ancillary Revenue
Direct guests drove 71% of ancillary spend, showing significantly higher propensity for spa bookings, dining add-ons through ResDiary integration, and experience packages. The direct channel wasn't just more profitable on room revenue, it drove higher total guest value.
Operational Efficiency
Perhaps most valuable was what couldn't be easily quantified in metrics. The team gained capacity without hiring additional staff. Hours previously spent on manual processes and second-guessing decisions were redirected to creating exceptional guest experiences.
"RevenuePro handles the strategic work, freeing our team to focus on what they do best, creating magical guest experiences,"
Philip Egan, General Manager at Dalhousie Castle
Guest Experience
Technology improvements enhanced rather than diminished the heritage experience. Guests enjoyed smoother booking journeys, more personalised communication, seamless dining integration, and recognition through the loyalty programme, all whilst the property maintained its historic character and charm.
A Legacy Meets Innovation
Partnership Beyond Technology
Four years into the relationship, what stands out isn't just the technology or results, it's the partnership approach that enabled both.
"We've been working with Profitroom since 2021, and what's remarkable is how the relationship has deepened," says Lynnel Farrow, Commercial Director at 7 Hospitality. "When we have questions or face challenges, they respond like colleagues. There's no jargon or promises of features 'coming soon', just honest collaboration focused on results."
RevenuePro exemplifies this approach. The team doesn't wait for problems to surface, they proactively review performance, identify optimisation opportunities, and suggest refinements. Whether it's adjusting strategy for Edinburgh's Christmas market season, testing dynamic upselling for spa packages, or capitalising on major events, the expertise is continuously applied.
"It feels less like using software and more like having extended team members who happen to be revenue management experts," reflects Philip Egan, General Manager at Dalhousie Castle.
This collaborative success at Dalhousie Castle naturally raises questions about broader implications.
The Competitive Advantage
In a market where guests have endless accommodation options, Dalhousie Castle now competes with advantages that rivals can't easily replicate:
✓ Pricing confidence rooted in data and expertise rather than intuition
✓ Direct channel superiority that encourages guest loyalty through better experiences
✓ Personalisation capabilities that create memorable experiences and emotional connections
✓ Operational efficiency freeing staff for genuine hospitality
✓ Strategic expertise through ongoing partnership that continuously optimises performance
✓ Technology foundation that improves with each enhancement and integration
"Our competitors might have similar rooms or amenities," notes Philip Egan, General Manager at Dalhousie Castle. "But we've built four years of data, refined our processes, and developed expertise in using these systems. That maturity and knowledge isn't something you can replicate overnight, it compounds over time."
Key Takeaways for Heritage Properties
Build Foundations Before Optimisation
While Dalhousie Castle had established their technology foundation over several years, RevenuePro demonstrated that strategic expertise creates immediate impact, doubling online revenue in just three months. The lesson: combining technology with expert revenue management accelerates results dramatically, whether you're starting fresh or building on existing systems.
Partnership Compounds Over Time
"We could have switched providers over the years," admits Lynnel Farrow, Commercial Director at 7 Hospitality. "But staying with Profitroom meant each upgrade built on what came before. RevenuePro worked so well because the foundation was already strong and the relationship was already established."
Technology Enhances Heritage, Not Compromises It
Running a 13th-century castle doesn't mean operating with outdated systems. Modern technology enables more authentic, personalised heritage experiences, smoother booking, better communication, recognition and rewards, whilst maintaining the character that makes the property special.
Expertise Accelerates Results
RevenuePro's combination of sophisticated technology and dedicated human expertise delivered dramatic results in just three months, far faster than technology or internal teams alone could typically achieve. Strategic expertise isn't a luxury; it's a catalyst.
Direct Channel Investment Creates Compounding Returns
Every direct booking strengthens your position for the next one. It's not just immediate revenue, it's relationships, data, loyalty, and long-term value that builds on itself. The effort to shift bookings to direct channels pays dividends that grow over time.
The Journey Continues
Dalhousie Castle's transformation isn't finished, it's ongoing. With four years of partnership behind them and proven results across every metric, the team continues to find new opportunities for improvement.
Current focus areas include:
- Further loyalty enhancement building on 429% enrolment growth
- Advanced personalisation capabilities that deepen guest connections
- Exploring additional optimisation opportunities across the technology suite
- Sharing proven strategies across the 7 Hospitality portfolio
The momentum continues to build, creating a flywheel effect where each improvement enables the next.
The Bottom Line
An 800-year-old castle transformed itself through a four-year partnership that combined comprehensive technology infrastructure with strategic revenue management expertise.
The results speak clearly: online revenue doubled, commission costs fell 7 percentage points, ADR increased 21%, and loyalty programme enrolment grew 429%, all whilst enhancing rather than compromising the heritage guest experience.
This is what becomes possible when heritage properties embrace modern technology thoughtfully. When partnerships deepen over time rather than resetting with each vendor change. When technology infrastructure and strategic expertise work together rather than in isolation.
This is Dalhousie Castle's transformation story, and a roadmap for heritage properties seeking to compete successfully in the modern hospitality market whilst honouring their unique character.