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What's On the Horizon for the Hotel Industry?

Duetto Research Blog 15 September 2017
It wouldn’t be a CEO panel at a hotel conference if the biggest names on the speaker lineup weren’t asked for their predictions on upcoming industry performance. After several years of “enjoy the ride” and then a year or so of “cautious optimism,” hoteliers at last month’s Hotel Data Conference in Nashville were less optimistic. On Day 1 of the conference, STR’s President and CEO Amanda Hite announced the company’s revised forecast, which showed expectations of slower ADR and RevPAR growth than what was previously announced.

How Cognitive Computing Will Transform Hospitality

Duetto Research Blog 14 September 2017
Plenty of companies are reorienting themselves around machine learning and predictive analytics. Take Netflix, for example: It uses machine learning to recommend movies or a series you might like based on what you’ve previously watched. But the amount of data available relating to a person’s preferences extends far beyond whether or not you like House of Cards. Imagine if all the data available about an individual could be aggregated, analyzed and then used to deliver an experience unlike any other?

Gambling Revenue Drops in Atlantic City

Duetto Research Blog 13 September 2017
At first blush, the news sounds bleak—overall casino gambling revenue for Atlantic City was down 2.7% in July. But look closer. Turns out the numbers include comparisons to when the shuttered Trump Taj Mahal Casino Resort was open. If you take the Taj Mahal out of the equation, the news is actually pretty encouraging. The city’s seven remaining casinos saw their gambling revenues increase by 3.9%. This includes internet gambling, which grew by 18.5%.

Look for Casino Revenue-Driving Tools at G2E

Duetto Research Blog 12 September 2017
When you arrive on the Las Vegas Sands show floor for Global Gaming Expo next month, expect the newest bright and shiny slot machines, with this year’s focus on novel social games catered to millennials. Among the shiny new toys and head-turning booths, you’ll see a smattering of mostly understated suppliers dedicated to back-of-house technology. Ironically, it’s the least sexy tools that have the potential to make or break the success of your business.

What NOT to Look for in a Hotel Revenue Manager

Duetto Research Blog 8 September 2017
In my six years as co-founder of Duetto, we’ve grown from a two-man operation working at a single desk to more than 100 people in five offices across the globe. While I haven’t hired everyone at Duetto, I was highly involved in many, and I’ve led the development of a culture in which all of our new hires must fit.

Marketing Data, Technology Enable Hotels To Compete Alongside OTAs

Duetto Research Blog 6 September 2017
The digital revolution has given independent hotels a place on the world stage, but it is often hard to find them beneath the dominant marketing presence of the online travel agents. For many individual hotels and small chains, driving web traffic and direct bookings is a vital part of their marketing mix. Tools such as branded search, paid search marketing, metasearch advertising, SEO and content marketing are all key to levelling the playing fields between the large OTAs and small chains or bespoke properties.

The UK: Maximising On Market Uncertainties

Duetto Research Blog 1 September 2017
The UK hotel market has been on a roller coaster ride in recent years. First, there was the 2008 recession, then the 2010 European debt crisis, before London saw a raft of new hotel openings for the pre/post Olympics period (as well as enjoying a successful Games). More recently, business has become more volatile due to terror attacks and political uncertainly as Brexit negotiations get underway.

Optimizing Hotel Distribution for All Parts of the Customer Journey

Duetto Research Blog 29 August 2017
New research sheds light on the unique booking behaviors of Mexican travelers, who show greater propensity for planning last-minute travel. Hotels might benefit from many guests paying higher prices for waiting too long. But it’s still important to their Revenue Strategy to optimize hotel distribution and marketing for consumers researching their travel options further out in the booking window.

Exploiting Big Data Is Key to Revenue Success

Duetto Research Blog 28 August 2017
Seven trending hotel news stories that will have an impact on your hotel Revenue Strategy. 1. THE FUTURE OF REVENUE MANAGEMENT DEPENDS ON BIG DATA The author has seen the future of the travel industry, and it is Big Data. He argues that accessing the data isn't sufficient; rather, travel professionals-and this particularly means revenue The post Exploiting Big Data Is Key to Revenue Success appeared first on Duetto.

Revenue Management is the Centerpiece of Hotel Operations

Duetto Research Blog 22 August 2017
You need a sales team to get guests in the door and an operations team to take care of them, but more often hoteliers are pointing to a different department as the crux of hotel operations. Revenue managers are the maestro, forecasting demand to calculate price points for the sales team and budgets for the operating team. Today, your revenue team is at the nexus of supply, demand and price, with the ability to shape your business mix toward profitability.

Revenue Teams Under Pressure To Reduce Acquisition Costs

Duetto Research Blog 21 August 2017
What it costs to acquire a customer is becoming as important an issue as what rate you’re charging that guest. As industry executives (especially those in the financial realm) look more closely at costs of acquisition, hotel sales and revenue specialists will be under increased pressure to lower costs while of course raising rates.

Boom Times in Australia, New Zealand are Right Time for Hotels to Bolster Pricing Power

Duetto Research Blog 18 August 2017
Down Under, times are good for the travel trade. As hoteliers in Australia and New Zealand reap the benefits of increased tourism, they also would do well to revisit and refine their pricing strategies so they have more power to hold and yield rate in the future, experts say. According to Tourism Australia, the country recorded a healthy 6.8% increase in visitor arrivals in May 2017 over the same period last year. This brings them to a 9.2% increase in arrivals — translating to 713,000 more visitors — for the year thus far, compared to the same period last year. Not too shabby.

A New Hero: Hotel Technology Can Save the Industry

Duetto Research Blog 17 August 2017
From the outside looking in, it appears hotels and the collective hospitality industry are doing just fine. We’re setting record occupancy numbers, learning more about our guests, and watching new hotels pop up left and right.

Hotels Too Often Undermine Corporate Rate Negotiations

Duetto Research Blog 14 August 2017
New research shows hoteliers often offer public rates that are lower than negotiated rates. Looking at four brand companies—Marriott, Hilton, Starwood and Intercontinental Hotel Group—the data shows they’re making their public rates available nearly half as often as when a negotiated rate beats a public rate, coupled with similar savings opportunities.

5 Trends Shaping Your Casino Revenue Strategy

Duetto Research Blog 8 August 2017
The expansion of casinos across the United States continues to have a major impact on the gaming landscape. Simultaneously, younger casino-goers are ditching traditional games and looking for new, more social types of entertainment. Owners and operators who haven’t adapted by finding their niches in the market and employing a Revenue Strategy to better attract and retain gamers are suffering.

There's More to ADR Calculations Than Meets the Eye

Duetto Research Blog 7 August 2017
Contrary to the good old days when an average daily rate calculation had real meaning, this author agues that hoteliers and revenue managers in particular need to understand that two ADRs actually exist: the guest-facing ADR, or the rate the guest actually pays for a room; and the actual net room rate a hotel receives after related guest-acquisition costs (agency commissions plus a variety of transaction fees and charges) are subtracted.

How Open Pricing Enables More Flexible Cancellation Policies

Duetto Research Blog 4 August 2017
It’s the age-old issue for any industry that deals with perishable inventory: On one side you get a bad rap for overselling or overbooking, while on the other side last-minute cancellations leave you stuck with unsold goods. If you give too much on either side, you’re going to lose a lot of money.

Hoteliers Demand Cloud, Open APIs from Tech Partners

Duetto Research Blog 2 August 2017
Hotel technology insiders have been discussing a giant migration to the cloud for nearly a decade now. Early on, IT teams would frequently debate the challenges and opportunities, masking their fear of the unknown. Then technology leaders began discovering many additional benefits to operating in the cloud. Smaller, more aggressive tech startups became the early adopters and, as they gained traction, disrupted laggards in the space.

Revenue Managers Need to Be Bold to Push Rates

Duetto Research Blog 31 July 2017
Seven trending hotel news stories that will impact your hotel Revenue Strategy. 1. HIGHER ADRS IN 2017? IT’S UP TO REVENUE MANAGERS: Global hotel rates are forecast to rise 3.7% in 2018, according to a new forecast. Whether those aggressive increases come to fruition depend on economic factors but also the bravery and moxy of revenue managers to push rates in times of general global uncertainty. Are you up to it?

Shifting Cancellation Policies Creates Revenue Management Issues

Duetto Research Blog 21 July 2017
As expected, once Marriott International implemented new guidelines that in general require guests to cancel reservations 48 hours in advance of arrival, other mega brand companies are making similar moves. The shift, now enacted by both Marriott and Hilton, presents new challenges as well as opportunities for all revenue managers. Extending cancellation policies is the latest in an ongoing trend by hotel companies to tighten their grip on consumers’ booking habits. Until 2015, most chains and properties allowed penalty-free cancellations until 6 p.m. the day of check-in. Then, most chains changed to a 24-hour penalty-free window. Now, Marriott and Hilton might be the leading edge of an industry-wide shift in cancellation policies.

UK Hotels Encouraged To Vary OTA Pricing

Duetto Research Blog 19 July 2017
The U.K. Competition and Markets Authority has called upon hoteliers to compete directly with the OTAs on price. The CMA has urged hotels to offer a lower price on other OTAs than on Expedia or Booking.com, and to offer extras in the price, such as breakfast. The call to action came after a recent Europe-wide study of hotel, OTA and metasearch site pricing found that 79% of hotels had not varied the price of rooms across OTA platforms since 2015.

The Value of Time for Hotels' Revenue Strategy

Duetto Research Blog 18 July 2017
Hotel revenue managers are tasked with making money, but first they have to make time. Requests for numbers never stop coming in — whether it’s the owners wanting RevPAR performance at a glance or GMs needing an operational forecast — and meeting those needs for reports can take up too much of a revenue leader’s time. But finding ways to automate reports, forecasts, budgets and data visualization gives a hotel company the bandwidth it needs to think more strategically and yield rates intelligently, says Susie Rossi, VP of revenue management and training for Oxford Corporate. She recently led the adoption of ScoreBoard, Duetto’s cloud-based application for forecasting and data reporting, at Oxford’s 18 hotels in Oregon, California, Washington and Idaho.

Revenue Strategy Forum Hong Kong Prepares Hoteliers for the Next Wave of Challenges

Duetto Research Blog 17 July 2017
When it comes to hospitality analytics, it’s hard to ignore the recent airtime devoted to and levels of interest in the topic of machine learning. The industry has been humming with how machine learning, specifically, helps hoteliers streamline much of their current time-constrained, manual processes – freeing up valuable time to focus on their revenue strategy in the process.

The Role of Revenue Manager Widens to Focus on Profitability

Duetto Research Blog 10 July 2017
Revenue management has morphed in recent years from a mundane day-to-day function to one in which automated systems do most of the work, leaving revenue management time to focus on “revenue strategy … and much broader performance management,” said speakers during a recent panel discussion. The speakers also said the role of revenue managements is widening to include increased awareness in total hotel profitability and a focus on maximizing revenues other than from the rooms department.

Room Type Pricing in the Real World

Duetto Research Blog 7 July 2017
We talk a lot about Open Pricing and more specifically the value of yielding room types dynamically. We’ve written whitepapers, produced videos and created plenty of slides that illustrate these concepts, but last week I saw firsthand why this is so important and the revenue opportunities too many hotels are missing. I was traveling south with my wife and daughter for a beach vacation in Surf City, NC, as I’ve done almost every year since I was a kid with my parents. We packed up the car Griswold-style and left Ohio on a Friday morning, aiming to break up the 11-hour drive into two days and time our beach arrival for Saturday afternoon right at check-in time at the cottage (optimizing vacation I call it).

4 Key Distribution Pillars: Mobile, Data, Voice, Loyalty

Duetto Research Blog 3 July 2017
Seven trending hotel news stories that will impact your hotel Revenue Strategy. 1. WHAT’S DRIVING CHANGES IN THE DISTRIBUTION LANDSCAPE? During a panel discussion at the recent NYU International Hospitality Industry Investment Conference, speakers outlined significant changes happening or on the way in hotel distribution:

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