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REVENUE MANAGEMENT
Real-time price optimization helps Hotel Pez Espada beat the competition
Verified case study
Hotel Tech Report has reached out to hoteliers at MedPlaya to verify this case study.
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’.
Why it matters:
In 2021, the property underwent an extensive renovation that saw the addition of new accommodation categories, meetings and events space, and new F&B outlets.
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Its new look and new facilities saw the hotel management team seek a change in segmentation to attract a different customer profile.
Top 3 Core Objectives:
Before contracting with Duetto, revenue was static and focused on TTOO, OTAs, or long-stay groups. The aim was to diversify segmentation and channels, while also elevating rate and market perception.
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Elevate market position: The goal was to position Hotel Pez Espada's ADR within the upscale hotels of the destination while maintaining occupancy.
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Optimize pricing: The hotel wanted the ability to adjust prices in real time, effectively responding to market fluctuations and changes in demand. This dynamic optimization was crucial to maximizing their revenue.
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Implement predictive analytics: The team wanted access to historical and current data to accurately predict future demand, allowing them to anticipate trends and adjust their strategies accordingly.
Innovators Mentioned
MedPlaya
Duetto
RC
Roger Calafell
Hotel Tech Report reached out to Roger Calafell who verified this case study.
Director de Distribution and Corporate Revenue Manager
MedPlaya
"Since implementing Duetto, we’ve seen significant improvements in our KPIs, highlighting an increase in ADR and a competitive advantage compared to other hotels. These improvements reinforce our confidence in Duetto's ability to transform any hotel's revenue management."
Roger Calafell
Director de Distribution and Corporate Revenue Manager
👍 Director de Distribution and Corporate Revenue Manager
Roger Calafell
said that The property is seeing significant increase in ADR and gains in competitive advantage with Duetto.:
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"Since implementing Duetto, we’ve seen significant improvements in our KPIs, highlighting an increase in ADR and a competitive advantage compared to other hotels. These improvements reinforce our confidence in Duetto's ability to transform any hotel's revenue management."
⚖️ The selection process:
During their research process, Roger Calafell
evaluated Duetto's product differentiators, customer support, and holistic value as a strategic partner and ultimately decided that Duetto was the best fit solution:
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Director de Distribution and Corporate Revenue Manager Roger Calafell said, about their decision: "Before deciding on Duetto, our revenue management team thoroughly evaluated various revenue management systems. None of these alternatives offered the essential features we needed, except Duetto."
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The results:
Duetto had an immediate impact in terms of driving revenue, improving occupancy, and elevating the hotel’s status in the market.
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Since Hotel Pez Espada started using Duetto, the hotel has seen a 15% increase in ADR. According to STR reports, the hotel has outperformed its main competitors on ADR.
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Hotel Pez Espada has been able to implement an optimized pricing strategy that quickly adapts to market fluctuations and demand. RevPAR has increased by 15%.
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Duetto has facilitated better customer segmentation, allowing the hotel to identify and capture more profitable market segments. This has led to higher occupancy and an 11% increase in room nights sold.
