Unleashing Success: A Hotel's Triumph with Duetto's Open Pricing and Veritasus Consulting

Introduction:

In the dynamic landscape of hospitality, strategic revenue management is the key to unlocking a hotel's true potential. This case study delves into the remarkable success of a property, guided by the expert revenue management of Veritasus Consulting and empowered by Duetto's innovative open pricing strategies.

Veritasus Consulting and Duetto; a perfect match for exceptional revenue performance

Key Event Period:

Our focus centers around a crucial period marked by two international concerts and concurrent midweek corporate demand. The intersection of corporate and leisure demand over a single night created substantial market compression, setting the stage for a unique challenge and opportunity.

Exceptional Market Share Results:

Under the adept guidance of Veritasus Consulting, the hotel not only navigated this complex scenario but excelled. The property outperformed competitors in both occupancy and Average Daily Rate (ADR), achieving significantly more year-over-year growth.

Rate Code Performance:

The true standout was the performance of the open pricing discounted rate code, offering discounts of up to 20%. Contrary to conventional wisdom, this rate code emerged with the highest ADR result in the entire hotel. Duetto's open pricing allowed for strategic flexibility, ensuring that heavily discounted rate codes were not closed during peak demand. This crucial decision safeguarded the hotel's performance on the surrounding dates, contributing to an overall robust revenue strategy.

Room Type Success:

Duetto's open pricing extended its impact to room types, with the property's 2-bedroom apartments experiencing exceptional rate growth during the key event date. This strategic approach facilitated competitive pricing on shoulder dates, attracting more profitable, longer-length-of-stay business.

Visualised:

The chart below vividly illustrates the effectiveness of Duetto's Open Pricing strategies. The graph displays the production of room nights and ADR for the 7-night Stay and Save rate code on the days leading up to and following a significant event held on Day 6. Room night production remains relatively stable, fluctuating between 9 and 11, typical for a rate code with a 7-night minimum length of stay. However, ADR shows variations of up to $189. Duetto plays a crucial role in safeguarding peak nights of hotel demand while boosting incremental demand during the shoulder nights. Traditionally, hotels might close such a product over key nights to achieve exceptional ADR, impacting average length of stay and increasing expenses. With Duetto Open Pricing, we keep the rate open, achieve remarkable ADR, and ensure maximum profitability with an extended average length of stay even during peak nights.

7 Night Stay and Save Room Night and ADR Production

Conclusion:

In the competitive world of hospitality, embracing innovative technologies and revenue management strategies is essential. The successful collaboration between Veritasus Consulting and Duetto's open pricing not only met challenges head-on but transformed them into opportunities for unprecedented growth. This case study stands as a testament to the power of strategic partnerships and cutting-edge solutions in shaping the success of modern hotels.