Case Study

How Duetto Boosts Revenue at Nobu Hotel Los Cabos

Sarah McCay Tams

Duetto · 10月 23, 2023

The magical Mexican resort region of Los Cabos is home to Nobu’s first hotel in Mexico. The five-star resort, located on the southernmost tip of the Baja Peninsula, offers 200 guest rooms and suites, meeting and event spaces, spa, infinity pools, private cabanas, and a variety of bars and dining, including a Nobu restaurant on the beach. The hotel opened in November 2019 and has run its revenue on Duetto from day one.

Why it matters: Nobu Hotel Los Cabos has a limited room count so every dollar matters. The hotel is set up with dynamic strategies to allow Duetto to locate and allocate the best discount possible on different periods using the Duetto Auto-Derive Feature! This set up allows the property to provide the best discount automatically and strategically on need periods while offering a ceiling-level rate protection on high-demand days. There is no need to close promotions as the discount varies based on the fluctuating demand of each future stay date.

Nobu Los Cabos uses Duetto's Open Pricing to independently yield all segments, room types, and distribution channels. Duetto auto-publishes the most profitable rates while restrictions protect rates on high-demand days.

Top 3 Core Objectives: As this luxury property is smaller in size in terms of room count when compared with other resorts, it is crucial to protect offerings on each room type, while ensuring competitive pricing to maximize revenues.

Optimize Every Room Type: Nobu Hotel Los Cabos is currently set up using the Duetto Room Type Automation (RTA) feature. This allows Duetto to recommend the best possible room type premium based on each room's demand. As inventory decreases, and demand goes up at the room level, Duetto protects each room's premium by automatically adjusting rates.
Boost Revenues With Upsells: Nobu Los Cabos takes advantage of the Duetto/Oaky upsell integration which offers dynamic and highly targeted room upgrade pricing to guests. It works by automatically adjusting upgrade rates in Oaky by leveraging the dynamic rate strategy in Duetto.
Increase Efficiencies: Nobu Hotel Los Cabos uses Duetto’s Autopilot to set up and automatically publish rates. This enables the team to focus on strategy rather than manually publishing rates. Every time the application optimizes or when the user runs Duetto's optimizer, the app automatically distributes the Open Pricing recommendations, taking into account restrictions set up by the user.

"I’m impressed with the results we’ve had with the Oaky and Duetto integration. The team feels more confident accepting an upgrade because they know it’s at the right price."

Lourdes Ancona

Revenue Management Corporate Director

👍 Revenue Management Corporate Director Lourdes Ancona said that the Duetto / Oaky integration delivers mpressive upselling results:

"I’m impressed with the results we’ve had with the Oaky and Duetto integration. The team feels more confident accepting an upgrade because they know it’s at the right price."

⚖️ The selection process: During their research process, Sarai Muñiz Arias 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 Sarai Muñiz Arias said, about their decision: "Automatization on rate changes and restrictions has helped to improve timings to have the correct rate at the right moment."

📈 The results: Room rates are optimized by type, segment, and channel, and then further optimized through the upsell program.

Before implementing the Duetto/Oaky integration, the average upgrade supplement per night at Nobu Hotel Los Cabos was $214.60. Having put the integration in place, the hotel saw the average supplement increase to $263.30. That’s an impressive rise of 22.7%.
Nobu Los Cabos saw a 78% decrease in rejection rates of room upgrade requests through the Duetto/Oaky Duetto integration.
Automated rate distributions drive efficiencies and hotel profit. Duetto’s integrated revenue solutions combine data from across the booking landscape to provide transparent metrics on: Customer acquisition costs Booking preferences Conversion rates.