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How Resorts Use Open Pricing To Increase Revenue

Resorts use Open Pricing in many ways to enhance their revenue management.

Firstly, understanding the total guest value is important to employ a tailored resort revenue strategy. Examining the entire guest spending history, including folio data, enables resorts to make more informed pricing decisions.

Layer in Open Pricing, and resorts then have the flexibility to set different rates for various room types, customer segments, and distribution channels, aligning pricing with specific market dynamics.

Open Pricing saves time by automating rate adjustments based on real-time data, streamlining the pricing process, and reducing manual efforts.

Resorts can also create dynamic offers that adapt to real-time occupancy and rate changes, maximizing revenue during peak periods.

Beyond room rates, Open Pricing can extend to all revenue sources, including ancillary services like cabana rentals, spa treatments, and dining. It accommodates per-person and child-specific pricing, can provide multiple currency options for international clientele, and ensures consistent pricing across various distribution channels.

Let’s look at a couple of examples:

Crystalbrook Collection

Crystalbrook Collection has been working with Duetto and using Open Pricing since 2017. The Australian resort operator has seen an increase in revenue, especially in selling suites, thanks to its creative packages strategy.

Open Pricing has enabled the team to optimize rates during high-demand periods and drive upsells into higher room categories during low-demand periods. The result is an increase in revenue across all segments, with particular success in selling suites.

“We have seen great results across all segments; however, the standout has been our suites across the hotels and resorts. We changed our strategy to look at demand forecast by segment and room type to maximize our revenue potential,” said Darryl Elliott, Director, Revenue Management, Crystalbrook Collection.

Crystalbrook Collection also operates an open distribution strategy. Channels stay open, as rates flex up and down in line with demand. The decision to book remains with the customer, and not with the hotel closing channels.

“Open Pricing allows you to keep all distribution channels open, without sacrificing rate or length of stay by setting pricing rules by rate code, room type, and segment,” Elliott added.

Discover more in our blog: Crystalbrook Collection Enjoys Success with Suites Strategy 

 

Outrigger Hospitality Group

Outrigger Hospitality Group also implemented Duetto's Open Pricing in 2017 to optimize its revenue and improve competitiveness in the markets it operates in.

Today, 14 Outrigger hotels and resorts, totaling 4,278 rooms, run revenue on Duetto, including the Kauai Beach Resort & Spa, Outrigger Koh Samui Beach Resort, Outrigger Maldives Maafushivaru Resort, and Castaway Island Fiji.

Outrigger works with many special rate parameters, including member rates, resident rates, seniors, AAA/CAA, and group blocks such as airlines, government, and travel agencies. Duetto’s Open Pricing is instrumental in delivering the optimum rate for each.

The resort operator pulled on various data inputs, including web shopping regrets and denials, to better measure price sensitivity and guide their rate programs.

Jenna Villalobos, Vice President, Commercial Strategy at Outrigger Hospitality Group, emphasized the value of Duetto's automation features: “We’re using website regrets and denials as a supplement to our web reporting,” she said. “Duetto digs deep into the length of stay and the geography etc, so that’s been helping us guide our length-of-stay rate programs.”

Open Pricing empowers resorts to make data-informed pricing decisions that maximize profitability and enhance guest experiences.

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 

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Sarah McCay Tams, Director of Marketing Communications.

Sarah joined Duetto in 2015 as a contributing editor covering Europe, Middle East & Africa (EMEA). In 2017, she was promoted to Director of Content, EMEA, and in 2022 promoted to Director of Marketing Communications. An experienced B2B travel industry journalist, Sarah spent 14 years working in the Middle East, most notably as senior editor – hospitality for ITP Publishing Group in Dubai, where she headed up the editorial teams on Hotelier Middle East, Caterer Middle East and Arabian Travel News. Sarah is now based back in the UK.

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