Boutique and independent hotels embrace Duetto’s Open Pricing to drive efficient revenue management through a dynamic pricing strategy. Duetto’s user-friendly system enables them to balance strategy and control with the flexibility to develop more complex revenue avenues when the opportunity arises.
Boutique and independent hotels often differentiate themselves through unique experiences, and Open Pricing enables them to be creative with pricing strategies and promotional offers. This could include:
- Special rates for specific events
- Packages that combine accommodations with local experiences
- Innovative offers to attract a diverse range of guests
Using Open Pricing To Grow ADR
Adriatic Luxury Hotels is a collection of the finest independent luxury hotels in Dubrovnik, Croatia. The company’s portfolio of eight hotels has worked with Duetto since 2020.
Before adopting Duetto, Adriatic Luxury Hotels was running revenue as a manual process.
“We were searching for revenue management software that would yield our room types independently. The possibility to set up supplements for each room type individually has helped us to optimize revenue per room type,” David Taylor, CEO, Adriatic Luxury Hotels, recalled.
Strategies being employed by the Adriatic Luxury Hotels revenue team include room type pricing and packages, combining amenities based on room type to maximize revenue. Open Pricing enables the hotels to yield all segments, room types, and distribution channels independently and in real-time, right down to selling the last room available.
“It has helped us to maximize our last room availability which has increased ADR,” Taylor confirmed.
Discover more in our blog: Moving to Open Pricing Grows ADR for Adriatic Luxury Hotels
Revenue Optimizing Every Room Sold
Heure Bleue Palais is set in a beautifully converted Moroccan riad in the port city of Essaouira. This five-star boutique hotel, part of the Relais & Châteaux collection, offers 33 unique rooms and suites, all overlooking the traditional courtyard patio and garden.
As a boutique hotel with limited rooms to sell, optimizing rates for each room type and night is vital to the hotel’s success.
In 2022, the hotel’s general manager, Eric Molle, decided it was time to move away from pricing on BAR – Best Available Rate – and move to a more dynamic and automated way of optimizing rooms revenue. As such, the hotel onboarded with Duetto and fully embraced Open Pricing.
“We were looking to maximize our revenue efficiently and rapidly, and work on our opportunities lost to OTAs,” said Molle. “Duetto changed all that for the better.”
“Open Pricing has helped us attract a more interesting clientele that is willing to spend more on other services provided by the hotel and thus it helped us to adjust the pricing for our spa services and restaurant,” Molle explained.
The results speak for themselves, not only is rooms revenue up, but the hotel has also seen an increase in demand for its ancillary services and F&B. Year-on-year, average daily rates (ADR) are up 37%, RevPAR has jumped 115%, and occupancy is up 29%.
Check out our case study with Heure Bleue Palais here - Heure Bleue Palais Boosts Total Guest Spend
Maximizing the Most Profitable Channels
Sandman Hotel Group is an independent, family-owned business operating in 57 Canadian destinations, as well as three in the UK and one in the US. The company contracted with Duetto in 2019, onboarding all its properties during COVID 2020. In total, 64 hotels with 11,461 rooms, are now live on Duetto.
Over the last year, the company has pushed for better distribution across all channels, especially direct channels. Open Pricing has played an important role.
The Sandman Hotel Group's revenue strategy is now able to price dynamically based on the day of the week, segments, demand periods, channels, occupancy, and much more.
“During high-demand dates, we price less profitable channels higher to direct bookings to more profitable channels,” said Ling Tong, Assistant Director of Revenue Management, Sandman Hotel Group.
“We’re seeing good ADR overall at all properties. On high-demand dates, we have seen Duetto push our rate up beyond what we would have previously pushed had we been managing rates,” Tong added.
The results speak for themselves. RevPAR across the whole portfolio has increased by 38%, comparing 2022 to 2023 figures.
Discover more in our blog: Sandman Hotel Group Reports Record-Breaking Rates
Open Pricing allows boutique and independent hotels to innovate in their pricing and optimization efforts. On-demand pricing adjustments based on immediate demand fluctuations, as well as dynamic optimization where prices change frequently based on various factors like booking pace, competitor rates, and market demand, help them optimize on every opportunity.
Discover how Open Pricing could help your hotel boost revenue and drive efficiencies. Download our latest special report, How Hotels Use Open Pricing to Optimize Revenue: https://www.duettocloud.com/special-reports/how-hotels-use-open-pricing-to-optimize-revenue