How Technology is Helping Independent Hotels Develop Competitive Revenue Strategies
By Jordan Hollander
Last updated February 16, 2023
4 min read
In recent years, many independent hotels have come to realize that technology gives them tools to compete with larger hotel brands in the digital marketplace, helping them to remain competitive and drive share of market.
But how exactly can technology add value to a hotel like yours? Duetto, known for their pioneering revenue management software, recently spoke with independent hotels to better understand how they use technology to get ahead of the curve. In this article, we’ll share some of Duetto’s findings: real-life examples of hotels that make software an integral part of their revenue strategies. These examples may spark ideas and inspiration for you as you consider adopting technology at your own property.
How Independent Hotels Leverage Technology to Stay Competitive
Duetto’s conversations with independent hotels found a few common themes in technology usage and benefits. Across different geographic areas and hotel departments, Duetto found these parallels:
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Integrated tech stacks
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Automation
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Tailored revenue management strategies
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Cloud-based software
Let’s dive deeper to understand how several hotels use technology to achieve higher ADRs and more efficient hotel operations.
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ASH Hotels Uses Technology to Boost ADR
If you’re going to invest in technology at your hotel, you want to get a solid return on that investment. ASH Hotels, who owns and operates five hotels, implemented Duetto and a new booking engine during the lull in demand amid the pandemic. Since they have a lean team, ASH wanted to find ways to automate manual processes, especially in revenue management, while also boosting top-line revenue. ASH’s Director of Revenue and Distribution, Nick Knight, quickly built strategies in Duetto that he can efficiently roll out when ASH is onboarding new hotels, and he has automated much of the reporting processes that would require manual work without an RMS like Duetto. Knight makes thoughtful use of pricing strategies at the room type level, and he can now deploy promotions on the hotels’ websites much faster, taking full advantage to changes in demand.. As a result, ASH has seen increases in ADR and a major share shift from third-party channels to direct in the short period of time since implementing Duetto.
Bridgeton Operates More Efficiently with Technology
When it comes to hotel software, the value of an integrated tech stack is more than the sum of its parts. As Bridgeton, a New York-based hotel investment and management company, found, when your technology solutions work seamlessly together, they can make everybody’s jobs more efficient. Bridgeton recently implemented Duetto and a new PMS, recognizing that to take full advantage of Duetto’s functionality, they would need to upgrade their legacy PMS. Although this project took significant time and investment, the Bridgeton team is pleased to have a tech stack that now allows them to operate the way they want to, rather than trying to find workarounds for outdated technology that was hindering their progress. Bridgeton’s revenue management team has already incorporated many of Duetto’s automated features into their day-to-day routine, which has allowed them to free up time they would have spent on manual tasks to focus on more impactful, strategic work.
Technology Helps Curator Find Synergy in Changing Market Dynamics
With a portfolio that includes several small brands and independent hotels, Curator Hotel & Resort Collection had to grapple with wildly changing market conditions during the pandemic. Changes in demand, like swings in international travel and the growing popularity of remote work, meant that Curator’s hotels were no longer seeing their typical length of stay, booking window, and segmentation patterns. In 2021, Curator chose Duetto as its preferred partner for revenue solutions. Since then, revenue teams using Duetto have been able to pull in competitor and market data from sources like Demand360 and OTA Insight to help them understand market dynamics – without having to manually study the data. This data informed their pricing strategies as they adapted to the “new normal” and made them less reliant on historical data that was no longer so relevant.
Helios Uses a Smart Tech Stack to Drive Direct Bookings
Spain-based Helios Hotels planned to upgrade their tech stack in the summer of 2018 with three goals in mind: to increase revenue, to operate more efficiently, and to shift reservation share to their direct channel and away from tour operators. Led by Chief Commercial Officer Kris Vanaerschot, Helios decided to implement a new PMS, RMS, and channel manager. Recognizing the need for more sophisticated pricing strategies to meet the growing demand for online bookings, Vanaerschot chose Duetto first, then selected a PMS, Sihot, that supported a solid integration with Duetto. He picked SiteMinder to be their channel manager also due to the integration potential with Duetto and Sihot. Working in tandem, these three systems optimize pricing, distribute rates and inventory, and ingest reservations. While Helios works to build a base of direct business and become less reliant on tour operators, the integrated tech stack helps them maintain one consistent guest database and nurture repeat business. Even four years later, Vanaerschot says that Helios’ tech stack has been instrumental in capturing maximum revenue during the busy summer 2022 season.
Noble House Unlocks Revenue with Room Type Pricing Strategies
As a part of Curator Hotel & Resort Collection, Noble House operates over 20 independent hotels across North America. The group had been using a legacy revenue management system but wanted to upgrade to a cloud-based system with modern functionality, like the ability to track website user behavior, adapt to changing segmentation, and offer a more intuitive user interface. In addition, Noble House wanted software that would help teams work more efficiently together. After implementing Duetto, Noble House saw positive change throughout the portfolio. One property, the Edgewater Hotel in Seattle, now sees productive collaboration between revenue, sales, and marketing teams on strategies to optimize compression dates. The Edgewater also credits Duetto with being able to better manage differences between midweek corporate demand and weekend leisure demand through targeted pricing strategies by room type.
From these examples, it’s clear that you don’t need to be a large hotel or have a world-famous brand name to broaden your market reach with technology. In fact, technology can be a competitive advantage for independent hotels, since it helps them sell more competitive rates and lure guests away from the bigger hotel companies, many of whom are still using clunky legacy systems. Whether you aim to grow revenue, guest satisfaction, or operational efficiency, technology can be the key to success as an independent hotel.
This article was created collaboratively by HotelTechReport.com and Duetto.
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