Revenue Soars For Wharf Hotels In Hong Kong

REVENUE MANAGEMENT

Revenue Soars For Wharf Hotels In Hong Kong

Pre-pandemic Hong Kong saw stiff market competition in the hotels space. For Wharf Hotels, the only way to drive earning potential was by growing average daily rate (ADR) and RevPAR Index (RGI). To do this the hotels needed to work together and a shared, integrated tech stack was needed.

Why it matters: While the three hotels had a central revenue team they each had their own positioning. For example, Gateway is a lifestyle hotel, and targets a younger, more energetic crowd, while Prince Hotel focuses on leisure guests. Therefore, a priority was to identify their demand separately, through custom reporting.

The three-hotel cluster now runs a fully integrated tech stack of which Duetto is a key part, integrating seamlessly with Opera, SiteMinder, and other technology applications.

Top 3 Core Objectives: Wharf Hotels’ Marco Polo Hongkong Hotel, Gateway Hotel and Prince Hotel all command prime locations close to the commercial and entertainment district of Kowloon and are linked to Harbour City – Hong Kong's largest shopping complex. In total, the three-property cluster has an inventory of 1,459 rooms in the city.

Yield room categories independently: Duetto’s GameChanger application enabled the revenue team to yield room categories independently by property and stay date, room type, and booking channel.
Insightful data, custom reporting: ScoreBoard enables the revenue team to be more insightful with their data, with a custom dashboard and the ability to produce custom reports for all three properties.

Innovators Mentioned

Wharf Hotels

Duetto

June Ng

Director of Revenue, Marco Polo Hongkong Hotel, Gateway Hotel and Prince Hotel

Wharf Hotels

"We monitor rates closely. The room rate may go up or down a few times within a day. Duetto helps me to adjust the rate based on data effectively."

June Ng

Director of Revenue, Marco Polo Hongkong Hotel, Gateway Hotel and Prince Hotel

👍 Director of Revenue, Marco Polo Hongkong Hotel, Gateway Hotel and Prince Hotel June Ng said that Real-time rate adjustments optimize revenue.:

"We monitor rates closely. The room rate may go up or down a few times within a day. Duetto helps me to adjust the rate based on data effectively."

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

Director of Revenue, Marco Polo Hongkong Hotel, Gateway Hotel and Prince Hotel June Ng said, about their decision: "The industry has used fixed BAR levels in the past 10 to 15 years. We decided to change to Duetto last year because we thought it is time to change for the future."

📈 The results: Comparing H2 2017 to H2 2018 (when all three properties were fully utilizing GameChanger and ScoreBoard) the three-property cluster saw a combined 13% increase in Room Revenue to HKD 457.2 million, a 12% increase in ADR to HKD 1,865 and a 12% increase in RevPAR to HKD 1,735. RevPAR Index (RGI) for the cluster increased 4%.

Gateway Hotel saw a 13% uplift in Room Revenue to HKD 132.4 million and RevPAR increased 13% to HKD 1,801. Its RGI position improved 5%.
Prince Hotel saw a 13% growth in Room Revenue to HKD 119.4 million, and a 13% increase in RevPAR to HKD 1,648. The hotel also enjoyed a 5% improvement in RGI.
Marco Polo Hongkong Hotel saw a 12% increase in Room Revenue to HKD 205.5 million, and a 9% increase in RevPAR to HKD 1,748.