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Posadas: Putting Total Profitability On The Agenda

Grupo Posadas is the largest hotel company based in Mexico, with more than 170 hotels in operation and live on Duetto. The hotel company, whose portfolio ranges from luxury all-inclusive spa resorts to its limited-service One Hotels brand, has been working with Duetto since 2016.

Total Profitability is top of the company’s revenue agenda, with the team currently investigating how to strengthen its commercial offering.

This blog is an excerpt from our latest special report, How to Boost Your Hotel’s Total Profitability. Download your copy here: 

Already, Grupo Posadas is benefiting from selling room upgrades at check-in and charging guests for late check-out. However, Erick Valdespino, Head of Revenue Strategy Pricing & Revenue Management, Grupo Posadas, has identified that more can be achieved by automating and planning.

“Currently, we are working on a project where the revenue management team will be more involved in ancillary sales and upselling in order to improve other revenue lines for the properties,” explains Valdespino.

Part of this project involves developing and promoting a digital concierge, ‘Lexi’. The aim is for Lexi to be the main point of contact for guests while they are on-property, and for the system to curate and send personalized offers to guests to promote ancillary spend.

For resorts and luxury hotels, on-property staff are already trained to promote add-on experiences such as romantic dinners, Bali beds, spa packages, etc. Valdespino says this will also become part of pre-stay communications to encourage guests to book these extras before they arrive.

Reporting is also set to change. Currently, RevPAR is the main KPI for revenue management, but once the ancillary revenue project starts, Valdespino says that TrevPAR (Total RevPAR) will become a key metric for the team.

The Duetto Difference

Grupo Posadas contracted with Duetto in 2016, moving from an on-premise, legacy RMS to Duetto’s cloud-based platform. Within the first year, RevPAR grew by 7.6% for the company, with a 13.7% increase for the Fiesta Americana brand.

In 2021, the company added its three-star limited-service One Hotels brand to Duetto, adding 6,000 rooms to the GameChanger pricing application.

Cornelio Encarnacion, Associate Director Customer Success, LATAM, who works closely with the Posadas team, believes Duetto’s Open Pricing methodology has been a key component in their success.

“Posadas optimizes its promotions using Open Pricing, which allows the company to capitalize on busy periods while enabling reservations to come through on need dates at the right price,” says Encarnacion.

Room-type optimization – another benefit of the Open Pricing methodology – has also provided a profitable revenue strategy.

“The Posadas team fully enjoys the benefits of applying our Open Pricing concept down to the room level. This allows the team to set strategies based on room availability, days before arrival, days of the week and so many more. Resorts tend to sell rooms faster and book more in advance in comparison with other property types, which allows the team to have the desired room type strategy ahead of time and their competitors,” explains Encarnacion.

“Grupo Posadas strategizes what we called ‘head count’ utilizing single occupancy discounts and extra person features in Duetto. These two strategies allow Posadas to include each guest in their Open Pricing strategies and stay aligned with industry-standard offers,” Encarnacion adds.

“Duetto is one of our main partners. It enables us to have better metrics on our key competitors. The Open Pricing function, and the dynamism that this function allows us, is the key for our results,” concludes Valdespino.

Discover more about pivoting your business strategy to total profitability in our latest eBook: How to Boost Your Hotel’s Total Profitability. Download your FREE copy today:

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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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