Since 1930, Palácio Estoril has been a symbol of elegance and world-class hospitality, welcoming royalty, celebrities, and dignitaries from around the globe. Nestled near Lisbon and the Atlantic coast, this five-star hotel seamlessly blends timeless sophistication with modern guest expectations. Palácio Estoril has partnered with The Hotels Network (THN) since 2018 to strengthen their direct booking strategy. Recently, the hotel expanded its use of THN’s suite of direct growth products by adopting Predictive Personalization to further enhance the guest experience and optimize conversions.

By integrating THN’s cutting-edge Predictive Personalization technology, the hotel optimized its direct channel performance, creating a data-driven approach that increased revenue while enhancing guest satisfaction.

Understanding visitor intent played a key role in transforming Palácio Estoril’s online booking strategy. With THN’s machine-learning algorithm, the hotel was able to assign real-time booking probability scores to website visitors, allowing for personalized engagement based on individual intent.

Palácio Estoril’s Strategy

Predictive Personalization harnesses machine learning techniques to predict user behavior and effortlessly optimize campaigns for each and every user. At Palácio Estoril, this data-driven strategy was implemented to refine promotional efforts and optimize revenue. For low-intent visitors, who were less likely to book, the hotel introduced exclusive, limited-time incentives. A 15% discount was strategically deployed to this segment, ensuring that promotions were only used when relevant rather than applied universally. This approach helped convert hesitant guests while reducing unnecessary ad spend.

Smart Note showcasing the exclusive discount for low-intent users

At the same time, high-intent visitors, those already inclined to book, were engaged with personalized messaging that emphasized the unique value of premium accommodations. Instead of offering discounts, the hotel showcased the benefits of luxury suites and VIP spa treatments, positioning them as exclusive perks for direct bookers. By reinforcing the value of these top-tier offerings, Palácio Estoril successfully increased upsells and boosted its Average Daily Rate (ADR).

Smart Note in the booking engine promoting Suites with a special discount and free VIP treatment for users detected to have high intent to book

Beyond increasing conversions, Predictive Personalization also enabled the hotel to optimize revenue per guest. By displaying tailored promotions and premium experiences, Palácio Estoril encouraged guests to choose higher-category rooms and additional services, strengthening the value of direct bookings. This refined approach not only drove short-term gains but also reinforced guest loyalty and long-term profitability.

The Results 

One year after implementing Predictive Personalization, Palácio Estoril saw remarkable improvements in their direct channel performance. By delivering the right message to the right guest at the right time, the hotel not only boosted revenue but also reduced marketing expenses, ensuring its promotional efforts were more efficient and impactful.

Palácio Estoril’s success story showcases the transformative impact of predictive technology in the hospitality industry. By embracing AI-powered personalization, the hotel optimized their direct booking strategy, increased revenue, and enhanced guest engagement all without escalating marketing costs. 

Want to discover more about how Palácio Estoril boosted their direct bookings with AI? Download the full case study to learn more!