Introducing L7 Gangnam
L7 Gangnam is a modern, four-star hotel in the heart of the fashionable Gangnam-gu area of Seoul, just a few minutes walk from the COEX Convention and Exhibition Center.
Part of the LOTTE Hotels & Resorts collection, L7 Gangnam is the latest of the company’s properties to onboard with Duetto, with the company’s five-star, flagship hotel Lotte Hotel Seoul having joined at the end of 2022.
With an open-terrace bar, foot spa, and contemporary restaurant, L7 Gangnam is designed to offer an oasis for guests who like to be right at the center of the action.
L7 Gangnam chose Duetto because of the solution’s ability to respond quickly and flexibly to market fluctuations and events.
Using Duetto to Strengthen Forecast Accuracy
Before using Duetto, short-term analysis was possible, but long-term forecasting wasn’t accurate, so it was difficult to be confident in predicting and implementing strategies. L7 Gangnam also chose Duetto because of the solution’s ability to respond quickly and flexibly to market fluctuations and events.
By introducing Duetto at the right time at the end of the off-season, the revenue team were able to cope with market changes and quickly respond to sales performance.
Jina Park, Revenue Manager at L7 Gangnam, said, “I was most excited the system’s ability to predict the market demand.”
Transforming Revenue Strategy to Improve ARI
L7 Gangnam used to focus mainly on occupancy strategy, increasing rates on high-demand dates with a short lead time. The hotel was missing out on the opportunity to sell at the right rate for dates that were outside of the primary booking window. With Duetto, L7 Gangnam has improved ARI (Average Rate Index) by being able to confidently increase rates for dates that are further out.
“Duetto reduced the business mix of the Corporate Segment and shifted it to other segments with higher ADR.”
By using GameChanger and ScoreBoard, L7 Gangnam is able to make quick decisions and put them into practice. The hotel is also using BlockBuster to enable sales managers to check the demand and conduct profit displacement analysis, helping them make better decisions more quickly.
The Results
- 73.3% year-on-year company growth*.
- 1st in the MPI Rank.
- 2nd in the ARI Rank.
- 1st in the RGI Rank.
Reflecting on the success, Jina commented:
“By looking at the demand and forecast at the segmentation level and optimizing at that segmentation level, Duetto reduced the business mix of the Corporate Segment and shifted it to other segments with higher ADR. With the recent introduction of BlockBuster, it became possible to compare system proposal rates for group volumes, competitors’ rates, and alternative volumes through displacement.”
She added, “Duetto even helps with communication between Sales and Revenue through a built-in communication tool.”
*Based on the cumulative total from January 2023 to May 2023.