Case Study

Lub d Sees Rate Treble in High Season

Sarah McCay Tams

Duetto · דֵצֶמבֶּר 13, 2023

Owner/operator Narai Hospitality Group started onboarding its Lub d collection of lifestyle properties onto the Duetto platform in 2021. It operates a unique portfolio of properties for budget-conscious travelers, so maximizing revenue is very important.

Why it matters: What makes Lub d unique from a revenue management perspective is that most of the inventory is beds in dorms, which are sold on a per-bed, per-night basis. The beds prove very popular with travelers from the UK and Europe. Lub d also offers private rooms, which sleep two, similar to a standard hotel room. Duetto can price beds and rooms separately, and roll room rates into package deals, such as bed and breakfast.

Lub d needed a solution that worked with its pricing strategy. The room-type strategy includes bed/room only and bed/room with breakfast. Rates are flexed up and down depending on demand.

Top 3 Core Objectives: Before Duetto, the Lub d revenue team was managing revenue manually. They would look at pick up by day and try to estimate demand. However, they knew they were missing opportunities.

Ease of Use: Part of the RMS selection checklist for Lub d was functionality, cost, ease of implementation, customer support, and how well the RMS worked with the PMS. Lub d works with MEWS as its PMS, which connects to Duetto via our Open API.
Price by Demand: All beds and rooms can be sold with or without a breakfast package. This helps the revenue team to segment prices and optimize via Duetto according to market demand.
Segment by Channel: Lub d segment by booking channels – with different strategies for online and offline. Every segment has a different rate structure. Using Open Pricing the team can keep all segments open and flex rates up and down to control demand.

"Duetto looks at our room types separately. We may not be busy in the private rooms, but we have a high demand for dorm beds. That is where price optimization works."

Sukanda Sumondis

Group Director of Revenue

👍 Group Director of Revenue Sukanda Sumondis said that Lub d sees great results from room-type optimization.:

"Duetto looks at our room types separately. We may not be busy in the private rooms, but we have a high demand for dorm beds. That is where price optimization works."

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

Group Director of Revenue Sukanda Sumondis said, about their decision: "We can segment our channels individually without having to sell everything, every price, and every segment the same."

📈 The results: Lub d is using Duetto for price optimization, using pricing rules by room type and segment. The brand has seen phenomenal success in 2023.

ADR grew by 28% during the peak months of January, February, and March.
The first half of the year saw ADR growth of 18% compared to the same time last year.
Rates for one property tripled. For Lub d Samui the normal price for a bed is B700 (Thai Bhat) during the high season. in 2023, Lub d managed to triple the price up to B2,000.