Hospitality revenue management has gone from being an evolving practice with uncertain financial upside potential to being a strategic imperative with predictable revenue outcomes. Indeed, when properly executed, it can deliver surprisingly large increases in revenue growth and profitability for practically any hotel property, regardless of size or category. Given all that, it’s no wonder that hotels and resorts across the board are coming to embrace the technology solutions that enable next-generation revenue management with unprecedented zeal. Yet, implementation of the right solution is only half the battle, and getting from here to there can be a daunting task for even the largest, most sophisticated hoteliers.

1. How to Select a Revenue
Management System

2. | Introductions
| Importance of next-gen technology
and integrations
| RMS buying considerations
| Don’t just manage revenue, create a
holistic strategy
| Optimize every booking with Open
Pricing
| Q&A
Today’s Agenda

3. Jeff Zabin
Research Director,
Starfleet Research
Eric Stoessel
Vice President of Marketing,
Duetto

4. 4
47% 35% 16%
Staff Managers Senior executives
Job level / role of survey respondents
Small hotels (including
motels and bed &
breakfasts)
Large and full service
hotels and resorts
14% 49% 37%
Midsize and limited
service hotels
Size / category of survey respondents’ hotel employers
About the Research

5. 5
“…Demand-based pricing, which is commonly used in the lodging and
airline industries, has already been adopted by other theme park
operators in the United States, including Universal Studios, which will
unveil a major Harry Potter-themed expansion of its Los Angeles park
next month. Movie theaters and sports teams are also experimenting
with similar pricing efforts…”
Disney Introduces Demand-Based Pricing at Theme Parks
New York Times
February 27, 2016
A Brief History (and Future) of RM
Sell the right space at the right price at the
right time to the right customer.

6. 6
97%
Percent of survey respondents who view the need to import all historic
booking, reservation, competitive and other relevant data into the Hotel
Revenue Management solution as an “important” or “very important”
success factor
RM Processing Automation
▍ Big data processing
▍ Advanced analytics
▍ Demand forecasting and pricing
optimization
▍ Next-generation technology
platforms

7. 7
Predicting the Future
FAST FACT: A mere $2 reduction in the average daily rate (ADR) for a 500-room hotel with
a 75 percent occupancy rate would cost a hotel more than a quarter million dollars in lost
profit in a single year.
▍ Historical data (e.g., occupancy, rates,
bookings dates, rate codes, arrival
dates, departure dates, revenue by
day, etc.)
▍ Market-level data (e.g., competitive
pricing, future flight demand, weather
reports and geographical information)
▍ Web shopping data

8. 8
▍ What is the optimal price to
charge in order to maximize
revenue?
▍ What is the best possible rate the
hotel can hope to get for a
specific guest room?
▍ How can a hotel ensure that
discounted price promotions
won’t dilute revenue and profits in
the long run?
Intelligent Pricing

9. 9
Technology and Data Integration
▍ Integration with property management
system (PMS) to provide for unified
bookings, analytics and reporting
▍ Integration with point of sale (POS)
systems
▍ Integration with modules and third-
party systems
▍ Integration across OTAs and other
distribution channels

10. 10
93%
Percent of survey respondents view the need to integrate revenue
management activities with sales, marketing and guest services activities as
an “important” or “very important” success factor.
Cross-Functional Integration

11. 11
Top Benefits of Next-Generation RM

12. 12
Performance Measurement
FAST FACT: Banquet room revenue performance can be measured in terms of function
space utilization, profit per available space/time (ProPAST) and profit per occupied
space/time (ProPOST).

13. 13
85%
Percent of respondents from large and full-service hotels who say that
upgrading their Hotel Revenue Management capabilities has improved
financial results.
Revenue Growth

14. 14
“How would you rate your company’s success in terms of utilizing
hotel revenue management to improve financial performance?”
Midsize and Limited
Service Hotels
21% 24% 17%
27% 32% 26%
Large and Full-Service
Hotels
Very successful Successful Somewhat successful
• Have utilized revenue
management for 8.5
years, on average
• Have increased RevPAR
by 7% on average
• 25% have one or more
revenue managers
• Have utilized revenue
management for 10-plus
years, on average
• Have increased RevPAR
by 9% on average
• 75% have one or more
revenue managers
Financial Improvement (by Hotel Size)

15. 15
Percent of respondents who say that one of the biggest benefits to be gained
from Hotel Revenue Management is a reduction in time associated with
traditional pricing tactics and getting pricing recommendations faster.
Time Savings / Speed-to-Decisions
91%

16. 16
Cost Reduction
Percent of respondents who say that one of the biggest benefits to be gained
from Hotel Revenue Management is a reduction in costs and resources
associated with traditional pricing tactics.
82%

17. 17
Total Revenue Management
Midsize and Limited
Service Hotels
Large and Full-
Service Hotels
“Approximately how
many functions or
departments across
your property are
currently being
administered using a
PMS?”

18. 18
Suitability of core modules
Data processing capacity
Pricing management features
Channel management features
Cloud / on-premise deployment
Usability / Customizability
Technology / data Integration
A
Low Medium High
B
C
D
E
F
Priority Level
G
Prioritizing the Buying Considerations
FAST FACT: The buying considerations are sure to depend to a large extent on a hotel’s
specific needs and situation, including its category, size and typology (number and types of
non-room revenue streams) as well as the team’s level of experience with RM.

19. 19
Uncertain ROI and financial upside
potential
Proven ROI and predictable (and
substantial) revenue outcomes
Manual calculation, or only partial
automation, of pricing and inventory
recommendations
Complete automation of pricing,
inventory and all other
recommendations
Increased room occupancy as the
primary goal
Increased net revenue as the
primary goal
From Legacy RM to Next-Generation RM

20. 20
Manual distribution of rates to OTAs
and other online channels
Automated channel management
and channel optimization
Revenue management applied to
guest rooms only
Revenue management applied to
all property revenue streams
Revenue management separate
from marketing and sales activities
Revenue management integrated
with marketing and sales activities
From Legacy RM to Next-Generation RM

21. 21
A Few Recommendations
▍ Select the right RM system
▍ Create a RM strategy
▍ Hire the right talent and resources
▍ Instill a RM culture (partner with the sales
and marketing departments)
▍ Track and measure progress (using all
relevant metrics)
▍ Think in terms of Total Revenue
Management

22. About Duetto
22
Founded by
Industry Leaders
World-Class
Technology Development
Committed to
Customer Success

23. A few of our partners

24. Built in the Cloud
REMAP DATA
WITH NO RESETS
RAPID
DEPLOYMENT
SEAMLESS
UPGRADES
NO SYSTEM
MAINTENANCE
ZERO
DOWNTIME
DATA
SECURITY
RAPID
INNOVATION
ACCESS ANYWHERE & ANYTIME
NO HARDWARE

25. Regional
Office
Owner Hotel Brand
Property
Management
A New Revenue Strategy
Operations
Sales &
Marketing Distribution
Revenue
Management

26. Big Data = Better Data
Reviews &
Social Media
Competitor
Pricing Data
Booking &
Reservation Data
Web Shopping
Regrets & Denials
Weather
Air Traffic
Traditional Revenue Management
Traditional Revenue Management

28. BAR (Best Available Rate)
Promo Rate – 20% off
$160
10% off
$180
$200
p
q Demand
Price

29. BAR Pricing = Lost Opportunity
29
BAR 2
$200
BAR 1
$100
Retail/ Transient Rate Code: BAR
15%
With BAR Pricing comes static:
| Room Type Differentials
| Discounts / Offers
45% Occupancy75%
BAR 3
$300

30. Traditional Pricing
$100
$150
$400
$200
Day 1 Day 2 Day 3 Day 4
CAPACITY
AAA
Promo Rate
10%
20%
✔
✔
AAA
Promo Rate
10%
20%
✔
✔
✖ AAA
Promo Rate
10%
20%✖
AAA
Promo Rate
10%
20%
✔
✖

31. Open Pricing
$100
$150
$400
$200
Day 1 Day 2 Day 3 Day 4
CAPACITY
AAA
Promo Rate
10%
20%
✔
✔
AAA
Promo Rate
10%
20%
✔
✔
AAA
Promo Rate
10%
20%
AAA
Promo Rate
10%
20%
2%✔
2%✔
5%✔
10%✔

32. Room Type Pricing
$100
$150
$400
$200
Day 1 Day 2 Day 3 Day 4
CAPACITY
Suite
King Bed
Double
+$100
+$50
+$0
+$75

33. Take Back Control – Open Pricing
| Independently price every single
segment, offer and room type in real time
| Maximize revenue over high demand
days and need periods
| Keep all channels open and benefit from
the “billboard effect”

34. My Rate Pricing
0
$190 $181
Jay
$199$175
Mary Adam Retail
$99 $190
Daily worth
$240
Daily worthDaily worth
Your most profitable guests become direct customers for life.

35. Customer Success
Deep Revenue Management Experience
(average 10+ years of experience)

36. Key Takeaways
| Deep experience in technology and hospitality
| Multi-tenant cloud structure provides continual updates and
innovation
| Go beyond revenue management with true revenue strategy
| Better data provides better insights into demand and pricing
| Optimize every booking with Open Pricing
| Unparalleled support with deep experience

37. Questions?
If you have more questions, please
email webinar@duettoresearch.com