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REVENUE MANAGEMENT
Lub d Sees Rate Treble in High Season
Verified case study
Hotel Tech Report has reached out to hoteliers at Lub d to verify this case study.
Owner/operator Narai Hospitality Group started onboarding its Lub d collection of lifestyle properties onto the Duetto platform in 2021. It operates a unique portfolio of properties for budget-conscious travelers, so maximizing revenue is very important.
Why it matters:
What makes Lub d unique from a revenue management perspective is that most of the inventory is beds in dorms, which are sold on a per-bed, per-night basis. The beds prove very popular with travelers from the UK and Europe. Lub d also offers private rooms, which sleep two, similar to a standard hotel room.
Duetto can price beds and rooms separately, and roll room rates into package deals, such as bed and breakfast.
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Lub d needed a solution that worked with its pricing strategy. The room-type strategy includes bed/room only and bed/room with breakfast. Rates are flexed up and down depending on demand.
Top 3 Core Objectives:
Before Duetto, the Lub d revenue team was managing revenue manually. They would look at pick up by day and try to estimate demand. However, they knew they were missing opportunities.
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Ease of Use: Part of the RMS selection checklist for Lub d was functionality, cost, ease of implementation, customer support, and how well the RMS worked with the PMS. Lub d works with MEWS as its PMS, which connects to Duetto via our Open API.
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Price by Demand: All beds and rooms can be sold with or without a breakfast package. This helps the revenue team to segment prices and optimize via Duetto according to market demand.
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Segment by Channel: Lub d segment by booking channels – with different strategies for online and offline. Every segment has a different rate structure. Using Open Pricing the team can keep all segments open and flex rates up and down to control demand.
Innovators Mentioned
Lub d
Duetto
SS
Sukanda Sumondis
Hotel Tech Report reached out to Sukanda Sumondis who verified this case study.
Group Director of Revenue
Lub d
"Duetto looks at our room types separately. We may not be busy in the private rooms, but we have a high demand for dorm beds. That is where price optimization works."
Sukanda Sumondis
Group Director of Revenue
👍 Group Director of Revenue
Sukanda Sumondis
said that Lub d sees great results from room-type optimization.:
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"Duetto looks at our room types separately. We may not be busy in the private rooms, but we have a high demand for dorm beds. That is where price optimization works."
⚖️ The selection process:
During their research process, Sukanda Sumondis
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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Group Director of Revenue Sukanda Sumondis said, about their decision: "We can segment our channels individually without having to sell everything, every price, and every segment the same."
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The results:
Lub d is using Duetto for price optimization, using pricing rules by room type and segment. The brand has seen phenomenal success in 2023.
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ADR grew by 28% during the peak months of January, February, and March.
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The first half of the year saw ADR growth of 18% compared to the same time last year.
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Rates for one property tripled. For Lub d Samui the normal price for a bed is B700 (Thai Bhat) during the high season. in 2023, Lub d managed to triple the price up to B2,000.
