Minor Hotels has long been seen as an innovator in the hotel revenue management space. NH Hotel Group is Minor Hotels’ division in Europe and the Americas and a trusted partner of Duetto since 2016 when the strategic decision was made to move all its 350 properties into Duetto as part of its digital transformation plan.
More than six years on, the group continues to run successful revenue strategies using the Duetto platform, with continued uplift in ADR, RevPAR, and occupancy.
Duetto’s Open Pricing methodology is at the heart of Minor Hotels’ revenue strategy in Europe and the Americas.
“Open Pricing gives us the ability to have unlimited price points that allow you to optimize your full demand curve. This technique allows us to fluctuate prices based on demand, supported by defined pricing rules. Open Pricing also allows us to dynamically change discounts for referenced rates. This way, yielding and optimizing can be easily achieved, without closing availability across channels,” said Cori Galindo, VP Commercial Growth, Minor Hotels Europe and the Americas.
- This blog is an excerpt from our latest special report, How Hotels Use Open Pricing to Optimize Revenue. Download your free copy here: https://www.duettocloud.com/special-reports/how-hotels-use-open-pricing-to-optimize-revenue
Running Revenue on Autopilot
Driving revenue efficiencies is also at the heart of the Minor Hotels strategy. The company uses Duetto’s controlled automation to deliver the best revenue results, combining human expertise with machine learning.
Early adopters of autopilot, Minor Hotels Europe and the Americas has been optimizing its entire rate structure with dynamic rates since 2017, adopting Open Pricing for all segments, including corporates, groups, and employee rates.
Duetto autopilot enables revenue teams to automate tactical rate changes so that revenue managers can focus more on higher-level, strategic decisions. Autopilot works by automatically updating rates in GameChanger for up to 364 days before arrival, ensuring rates are updated in response to changes happening in the market, 24/7.
Flexible Discounts
The revenue team at Minor Hotels Europe and the Americas uses Duetto to flex discounts and promotions in line with demand.
With multiple brands - Anantara, Avani, NH Hotels, NH Collection, Tivoli, and nhow – often with clusters of properties in the same city or destination, being able to optimize by brand, location, room type, channel or stay date enables the team to push multiple price points all geared to convert.
“Instead of applying fixed discounts, thanks to Open Pricing, discounts fluctuate automatically based on demand. So, when demand is lower, the discounts will automatically be increased based on pricing rules, while during high-demand dates, the discounts will shrink according to your business rules. Thanks to the simplicity of Open Pricing and pricing rules, strategies can be easily reviewed and adapted based on needs,” Galindo explained.
Minor Hotels Europe and the Americas is driving more and more segments to Open Pricing and using Duetto’s Min/Max bounds to set rate parameters.
“Min/Max bounds allow us to set the minimum price as a starting point for Open Pricing. But if we have the possibility to increase prices due to higher demand, why not take the opportunity to do it? We are looking for the maximum profit optimization,” said Galindo.
“At the end of the day, Open Pricing enables our group to put the customer in the driving seat. Demand dictates how rooms and packages are priced,” Galindo added.
Discover how Open Pricing is driving revenue at hotels running on Duetto. Check out the many case studies in our latest eBook, How Hotels Use Open Pricing to Optimize Revenue. Download now.