El Cortez Hotel Duetto Revenue Management Case Study

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The Duetto solution has completely transformed our revenue strategy. It gives us the tools and confidence to be much more proactive in our decision-making for various channels and segments. Before implementing the system we didn’t have the visibility to understand where we were giving up margin and profit, and in a competitive market like ours, we could no longer afford that. Along with the rest of the Las Vegas market, the property’s casino revenues struggled after the economic downturn in 2008. The property’s management team realized that the downturn was permanently changing consumer-spending behavior in Las Vegas. They needed to jolt hotel revenues through incremental cash business via transient and wholesale channels. But they lacked both a system as well as a methodology to enable this transformation. CHALLENGE Results: 30% increase in cash revenue 10% increase in ADR 109% increase in direct room nights Challenge: Changing Business + Revenues Down Solution: Duetto GameChanger + Duetto Customer Success Team More dynamic pricing Midweek & weekend changes Rolled back discounts Casino segment yielding Rate parity on website Customer Success Story How the El Cortez Hotel & Casino breathed new life into their revenue Kenny Epstein, Owner, CEO and Chairman, El Cortez Hotel & Casino The El Cortez Hotel & Casino is the longest continuously running hotel-casino in Las Vegas, a cornerstone of downtown for over 70 years. Both classic and timeless, the hotel has been a family-run operation since the 60s, and maintains a strong emphasis on providing authentic customer experiences.

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CHALLENGE: Along with the rest of the Las Vegas market, the property’s casino revenues struggled after the economic downturn in 2008. The property’s management team realized that the downturn was permanently changing consumer-spending behavior in Las Vegas. They needed to jolt hotel revenues through incremental cash business via transient and wholesale channels. But they lacked both a system as well as a methodology to enable this transformation. SOLUTION: The El Cortez implemented the Duetto GameChanger application as the foundation for their revenue strategy, a cloud-based system that added significant visibility and insights through market intelligence, accurate forecasting, pricing recommendations, and historical data comparisons. The system’s unique Smart Alerts feature highlighted key dates that needed attention, which would normally be overlooked. They were able to track the hotel’s website shopping traffic, measure lost business, and analyze regrets and denials to better understand shopping behavior by day and refine their pricing strategy

Transcript of El Cortez Hotel Duetto Revenue Management Case Study

Page 1: El Cortez Hotel Duetto Revenue Management Case Study

The Duetto solution has completely transformed our revenue strategy. It gives us the tools and confidence to be much more

proactive in our decision-making for various channels and segments. Before implementing the system we didn’t have the visibility

to understand where we were giving up margin and profit, and in a competitive market like ours, we could no longer afford that.

Along with the rest of the Las Vegas market, the property’s casino revenues struggled after the economic downturn in 2008. The property’s management team realized that the downturn was permanently changing consumer-spending behavior in Las Vegas. They needed to jolt hotel revenues through incremental cash business via transient and wholesale channels. But they lacked both a system as well as a methodology to enable this transformation.

CHALLENGE

Results: 30% increase in cash revenue 10% increase in ADR 109% increase in direct room nights

Challenge: Changing Business + Revenues Down

Solution: Duetto GameChanger + Duetto Customer Success Team

More dynamic pricingMidweek & weekend changesRolled back discountsCasino segment yieldingRate parity on website

Customer Success Story

How the El Cortez Hotel & Casino breathed new life into their revenue

Kenny Epstein, Owner, CEO and Chairman, El Cortez Hotel & Casino

The El Cortez Hotel & Casino is the longest continuously running hotel-casino in Las Vegas, a cornerstone of downtown for over 70 years. Both classic and timeless, the hotel has been a family-run operation since the 60s, and maintains a strong emphasis on providing authentic customer experiences.

Page 2: El Cortez Hotel Duetto Revenue Management Case Study

Book your future – with Duetto.To learn more please contact us at [email protected] / www.duettoresearch.com

The El Cortez implemented the Duetto GameChanger application as the foundation for their revenue strategy, a cloud-based system that added significant

visibility and insights through market intelligence, accurate forecasting, pricing recommendations, and historical data comparisons. The system’s unique Smart

Alerts feature highlighted key dates that needed attention, which would normally be overlooked. They were able to track the hotel’s website shopping traffic,

measure lost business, and analyze regrets and denials to better understand shopping behavior by day and refine their pricing strategy.

1 Cash room nights includes all cash channels

excluding casino and group rooms2

Direct room nights includes bookings made directly through the property (website, call center, walk-in) and excludes all 3rd parties

YoY Change (Jan - Nov 2013 vs. 2012)

# %

7,35514,509

11%109%

10%4.5%30%

Cash room nights1

Direct room nights2

Cash ADROccupancy

Cash revenue

Hotel pricing was yielded much more frequently than before.

The hotel decreased certain midweek rates while increasing rates on weekends and other busy dates.

The property strategically pulled back certain discounts on specific dates, when they didn’t need the extra promotions.

The hotel yielded by casino segment to identify higher value players, and implemented variable casino cash and comp pricing.

The hotel began to actively maintain rate parity between third parties and their direct channels (website, call center, and walk-ins).

The property expanded third-party distribution to include additional OTAs and wholesalers.

More Dynamic Pricing

Midweek & Weekend Changes

Rolled Back Discounts

Casino Segment Yielding

Rate Parity

Expanded Third-Party Distribution

Powered by Duetto, the El Cortez made the following changes to its revenue strategy:

The strategy has delivered a cash revenue increase year over year of 30% in the first eleven months of 2013. ADR increased by 10%, and direct room nights by 109%.

RESULTS

SOLUTION