MedPlaya beats the competition with Duetto | Duetto

We caught up with Roger Calafell, Commercial Manager, MedPlaya - Hotel Pez Espada. The hotel deployed Duetto following an extensive renovation. He explains how the team is using our revenue management system (RMS) to compete with luxury brands.

Introducing MedPlaya - Hotel Pez Espada

Hotel Pez Espada is a four-star hotel offering 239 rooms in the popular Spanish holiday resort of Torremolinos. An iconic landmark, the hotel opened in the 1950s, when it was considered the ‘place to be seen’.

In 2021, we underwent an extensive renovation that saw the addition of new accommodation categories, meetings and events space, and new F&B outlets. With our new look and facilities, we sought a change in segmentation to attract a different customer profile.

Tech stack

• Booking engine: ObeHotel by Efimatica
• PMS: OneSiteHospitality
• RMS: Duetto

What was your revenue setup before Duetto?

Before adopting Duetto, we had different segmentation with a higher weight in certain segments like TTOO, OTAs, or long-stay groups. The goal was to position Hotel Pez Espada's average daily rate (ADR) within the upscale hotels of the destination while maintaining occupancy.

We also wanted to move away from using tools to simply process our data, and use an RMS for the first time to monitor and manage all our inventory and pricing.

“We’ve implemented an optimized pricing strategy that’s improved our ADR and strengthened our market position.”

How has your revenue strategy changed?

Several factors have helped us improve since we started using GameChanger, ScoreBoard, and BlockBuster:

• Real-time price optimization: We can now adjust room rates in real time based on market demand, competition, and other economic factors. This capability has enabled us to maximize revenue, reflected in a 15% increase in room revenue.
• Advanced customer segmentation: The tool has facilitated better customer segmentation, allowing us to identify and capture more profitable market segments. This has led to higher occupancy and an 11% increase in room nights sold.
• Predictive analytics: We can anticipate future demand and adjust pricing and marketing strategies accordingly. This proactivity has improved both occupancy and revenue.
• Inventory and channel management: We have more efficient management of inventory and distribution channels, ensuring rooms are sold at the right price at the right time. This strategy has been key to optimizing revenue.

What have been the results?

• Room nights +11%*
• Room revenue +15%*
• RevPAR +15%*
  
  *Jun ‘23 – ‘May 24 vs Jun ‘22 - May ‘23
   
  

  Since implementing Duetto, we’ve achieved several significant milestones, but one of the most notable has been the continuous improvement in our ADR.

  The platform has enabled us to adjust our prices dynamically, based on data, ensuring we maximize our room revenue. In many periods of the year, according to STR reports, we’ve achieved an ADR higher than our main competitors.

  This competitive advantage is a testament to the effectiveness of our revenue strategy and the precision with which Duetto allows us to manage pricing. Thanks to Duetto, we’ve been able to implement an optimized pricing strategy that quickly adapts to market fluctuations and demand. This has not only improved our ADR but also strengthened our market position.