Diverse Portfolio Reaps Rewards With Open Pricing Strategy

REVENUE MANAGEMENT

Diverse Portfolio Reaps Rewards With Open Pricing Strategy

Headquartered in Hong Kong, Ovolo Group operates a collection of unique, lifestyle hotels and serviced apartments under the Ovolo Hotels and Mojo Nomad brands. The portfolio is highly diverse, with different demographics and market positioning for each property and brand. The challenge was to bring all these factors together with a centralized revenue strategy and tech stack that would improve revenues and performance across the group.

Why it matters: At the time, both the Hong Kong and Australian hotel markets were stagnant, with declines being seen across the markets in ADR and RevPAR. Ovolo wanted to take action to ensure it remained ahead of the market.

The company implemented Duetto’s GameChanger pricing tool in 2017 in order to price each property, room, segment, and guest independently. The company fully embraced an Open Pricing model, reaping immediate rewards by being able to monitor and act on live pickup by date and segment.

Top 3 Core Objectives: As a young and innovative hotel company, Ovolo Group was looking to build a tech stack that was also ahead of the curve.

Create dynamic pricing strategy: Open Pricing strategy was adopted across the entire portfolio of 10 properties. This has enabled the team to optimize rates multiple times a day. Embracing room-type differentials led to a more dynamic pricing strategy, which assisted in revenue growth.
More strategic, less manual: GameChanger and ScoreBoard have freed up the team to be more strategic, as less time is now spent on manual reporting.
Centralized revenue: A centralized team, working with live figures accessible from the same application, has helped simplify many processes, improving revenues and performance.

Innovators Mentioned

Ovolo Group

Duetto

Kanwarpreet Kanwar

Group Revenue & Distribution Director, Ovolo Group

Ovolo Group

"Open Pricing just made so much sense, so the team here happily adopted it and has used this to maximize our revenue performance. This shows in our figures where we have grown compared to competitors and markets where most of them declined."

Kanwarpreet Kanwar

Group Revenue & Distribution Director, Ovolo Group

👍 Group Revenue & Distribution Director, Ovolo Group Kanwarpreet Kanwar said that Open Pricing drives revenue gains:

"Open Pricing just made so much sense, so the team here happily adopted it and has used this to maximize our revenue performance. This shows in our figures where we have grown compared to competitors and markets where most of them declined."

⚖️ The selection process: During their research process, Kanwarpreet Kanwar 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 Revenue & Distribution Director, Ovolo Group Kanwarpreet Kanwar said, about their decision: "Working with dynamic room type differentials, Duetto has allowed us to work smarter, be more nimble with pricing, and I feel gave us a competitive advantage over our competitors in the industry."

📈 The results: Since onboarding with Duetto, Ovolo Group has been better able to target niche markets, enabling them to improve and drive revenue through Open Pricing and working with dynamic room type differentials.

Ovolo Group saw a 9% increase in rooms revenue year-on-year for the first half of 2019.
ADR increased 4% in July 2018-June 2019 v July 2017-June 2018.
The company fully embraced an Open Pricing model, reaping immediate rewards by being able to monitor and act on live pickup by date and segment.