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.

Duetto

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Innovators Mentioned

Yotel
Duetto
RD
Ryan Dance
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Global VP of Business Performance

Yotel

"Profitable Pricing is at the very core of everything we do. We price slightly different to the market with a particular emphasis on dynamic pricing by product, room type and Length of stay."

Ryan Dance

Global VP of Business Performance

👍 Global VP of Business Performance Ryan Dance said that Yotel has a firm focus on driving up length of stay.:

  • "Profitable Pricing is at the very core of everything we do. We price slightly different to the market with a particular emphasis on dynamic pricing by product, room type and Length of stay."

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

  • Global VP of Business Performance Ryan Dance said, about their decision: "There is a strong correlation between our brand and our commercial strategy, and Duetto helps us achieve this."

📈 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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