L7 Gangnam sees significant results with Duetto

REVENUE MANAGEMENT

L7 Gangnam sees significant results with Duetto

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.

Why it matters: Part of the LOTTE Hotels & Resorts collection, L7 Gangnam gains 73.3% in year-on-year company growth with Duetto.

L7 Gangnam chose Duetto because of the solution’s ability to respond quickly and flexibly to market fluctuations and events.

Top 3 Core Objectives: The team wanted to adopt an RMS o enhance forecast accuracy and adapt flexibly to market fluctuations, enabling the hotel to improve long-term planning and boost ARI by optimizing rate strategies beyond short booking windows, while making more efficient and data-driven revenue management decisions.

Strengthen forecast accuracy: Long-term forecasting was previously unreliable, making strategic planning challenging, while the team needed flexibility in responding to market shifts.
Improve ARI: The team wanted to shift away from an occupancy-focused strategy to focusing on dates beyond the primary booking window, assuring no missed opportunities.
Improve operational efficiency: The hotel wanted to be able to make quick and efficient data-based decisions.

Innovators Mentioned

L7 Gangnam

Duetto

Jina Park

Revenue Manager

L7 Gangnam

"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."

Jina Park

Revenue Manager

👍 Revenue Manager Jina Park said that Duetto rebalanced the business mix by shifting from the Corporate Segment to higher ADR segments.:

"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."

⚖️ The selection process: During their research process, Jina Park evaluated Duetto's product differentiators, customer support, and holistic value as a strategic partner and ultimately decided that Duetto was the best fit solution:

Revenue Manager Jina Park said, about their decision: "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."

📈 The results: The hotel achieved 73.3% year-on-year growth and top performance in MPI, RGI, and ARI rankings by using Duetto to optimize segmentation strategies, enhance ADR, and improve collaboration between Sales and Revenue teams.

73.3% year-on-year company growth (based on the cumulative total from January 2023 to May 2023)
1st in the MPI (Market Penetration Index) and RGI (Revenue Generation Index) Ranks.
2nd in the ARI (Average Rate Index) Rank.