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REVENUE MANAGEMENT
Revenue Automation Boosts Market Share for Central Hoteles
Verified case study
Hotel Tech Report has reached out to hoteliers at Central Hoteles to verify this case study.
Central Hoteles is a Mexican hotel company operating two landmark properties in Mexico City: the 105-room Zocalo Central Mexico City and the 85-room Historico Central.
The two hotels were looking to build an integrated tech stack to enable them to be more competitive in the market and boost their reputation.
Why it matters:
Small, boutique hotels need to optimize every room rate. This requires strategy and tactics to ensure the best rate is achieved while also aiming for the highest occupancy.
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Small hotels also often come with a small team, so empowering them with solutions to help optimize and automate pricing decisions can help boost revenue and drive efficiencies and team morale.
Top 3 Core Objectives:
Central Hoteles was looking to move away from manually managing revenue and to adopt a revenue management system that would partner seamlessly with their PMS and channel manager to drive rates and streamline revenue management.
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Moving from Manual: Before adopting Duetto, Central Hoteles relied on manual reporting on pick up, forecasting, and occupancy to adjust rates. Demand and comp set were measured using reports from OTA platforms such as Booking and Expedia.
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Connecting Revenue Strategy: Today, the RMS (Duetto), PMS, and Channel Manager all work together, which is enabling the two hotels to be more competitive in the market, and has improved their reputation.
Innovators Mentioned
Central Hoteles
Duetto
CL
Carolina Lara
Hotel Tech Report reached out to Carolina Lara who verified this case study.
Revenue Manager, Central Hoteles
Central Hoteles
"Duetto has enabled us to better understand the demand trends with much more accuracy and speed."
Carolina Lara
Revenue Manager, Central Hoteles
👍 Revenue Manager, Central Hoteles
Carolina Lara
said that better understanding market demand has helped Central Hoteles price more competitively.:
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"Duetto has enabled us to better understand the demand trends with much more accuracy and speed."
⚖️ The selection process:
During their research process, Carolina Lara
evaluated Duetto's product differentiators, customer support, and holistic value as a strategic partner and ultimately decided that Duetto was the best fit solution:
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Revenue Manager, Central Hoteles Carolina Lara said, about their decision: "We are now much more dynamic in updating our rates, going from doing it once a week to three times a day."
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The results:
Central Hoteles have seen significant growth across all metrics, with ADR, occupancy and reputation all improving since adopting Duetto.
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Being able to flex rates in line with market demand has had a positive impact on the average daily rate (ADR) at both properties.
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Comparing the first quarter of 2022 with the same time in 2023, Zocalo Central Mexico City has seen an increase of 3% in ADR, while Historico Central has seen ADR jump 12%.
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Market reputation has also increased, as the integrated tech stack enables Central Hoteles to go to market with competitive rates designed to both sell and be profitable. As such, occupancy at both hotels has increased by more than 20%.
