REVENUE MANAGEMENT

Length of Stay Strategy Pushes Yotel Ahead

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Yotel contracted with Duetto in 2019 to streamline its revenue processes and maximize profitability across its portfolio.
Why it matters: In 2023, the team adapted its strategy to focus on length of stay, in line with a new corporate branding strategy targeting the ‘non-stop’ traveler who wants to get the most from the destination, not from the hotel room.

  • Yotel offers convenient lifestyle hotels in prime locations worldwide, including airport hotels, tech-led city center hotels, and convenient accommodations for commuters, relocators, and space maximizes. As such, it needed a flexible revenue management system that could dynamically price according to shifting demands in its busy locations.

Top 3 Core Objectives: Pricing is central to revenue management at Yotel, with a focus on length of stay. The team needed a solution that could help drive longer stays, enabling properties to become more efficient and more profitable.

  • Increase length of stay: Longer stays are more profitable, and this is the focus for Yotel.

  • Drive direct bookings: Revenue is focused on driving customers to book directly through the Yotel website. Increasing conversions is a high revenue mandate.

  • Align pricing with brand: New corporate branding aligns Yotel with the non-stop traveler who wants to get the most from the destination, not from the hotel room. This ties to the length of stay strategy.

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Innovators Mentioned

Yotel
Duetto
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Nader Nawwar
The hotelier hasn't yet verified the case study.

VP Business Performance, Europe and Middle East

Yotel

"Pricing is the core of everything we do. We price slightly different to the market. Length of stay has become our signature. We are at least double the market on length of stay – everywhere."

Nader Nawwar

VP Business Performance, Europe and Middle East

👍 VP Business Performance, Europe and Middle East Nader Nawwar said that Yotel has a firm focus on driving up length of stay.:

  • "Pricing is the core of everything we do. We price slightly different to the market. Length of stay has become our signature. We are at least double the market on length of stay – everywhere."

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

  • VP Business Performance, Europe and Middle East Nader Nawwar said, about their decision: "There is a strong correlation between our brand and our commercial strategy. Everything we do leads to the website and how we increase conversions."

📈 The results: Length of stay has increased and as such revenue metrics are also up. Room Nights: +21%, ADR: +12%, RevPAR: +36%.

  • Length of stay is up in key city locations, with average stays in London at 4.5 nights and average stays in Singapore at 5+ nights.

  • OTA channels are also driving longer stays. 20% of business from booking.com is 7+ nights.

  • Yotel is attracting new customers to its website with 85% of bookings from new customers.

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