El Cortez Hotel Duetto Revenue Management Case Study
-
Upload
franco-caporale -
Category
Software
-
view
85 -
download
0
description
Transcript of 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.
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