Jul 19, 2022
Originally posted here.
Duetto and Oaky, two of the hospitality industry’s best in class Revenue Strategy and Upselling platforms, have announced a strategic partnership that delivers analytically-powered, highly targeted upgrade offers to guests.
The integrated solution connects Duetto Open Pricing, room type pricing, and brand strategies with Oaky’s highly personalized upselling platform to yield 45% higher guest spend per upgraded night, while also creating an overall better guest experience in the process.
The hospitality space remains volatile and hotels must drive direct bookings more than ever. As travel continues to recover, the Oaky/Duetto partnership will enable hotels to drive even higher average daily rates (ADR) to optimize demand peaks by presenting personalized upgrade offers direct to guests via Oaky.
“Every hotelier that adopts a revenue management strategy understands the impact of dynamic pricing on room revenue,” said Erik Tengen, Co-Founder, Oaky. “Together with Duetto we can extend the dynamic pricing strategy to upselling and deliver an automated solution that drives more incremental revenue without any extra work.”
“This new integration between Duetto and Oaky enables us to deliver analytically powered, highly targeted upgrade offers to guests. Duetto’s Open Pricing empowers hotel revenue teams to price all room types, channels, and dates independently of each other to maximize revenue. The upsell integration with Oaky enables us to take this to another level, helping hotels to yield even higher through upgraded rooms and ancillary services, with offers personalized to the guest,” says David Woolenberg, CEO of Duetto.
TD had a chat with Erik Tengen to further talk about the company’s latest partnership with Duetto and how it supercharges upselling of hotels.
Travel Daily (TD): What is the problem/gap in the hospitality sector that this partnership aims to resolve?
Erik Tengen (ET): Partnerships have traditionally been sending data back and forth between two players but not fundamentally changing behaviour. The Oaky & Duetto partnership was designed to leverage the pricing capabilities of Duetto and the conversion capabilities of Oaky to send the right deal to the right guest at the right time. Together, Oaky and Duetto are now able to send the right deal to the right guest at the right time and at the perfect price. Bringing the capabilities of Oaky and Duetto together, H-Hotels who piloted the integration saw an uplift of 45% in their room upgrade supplements and a 40% decrease in rejection rates, resulting in increased revenue and enhanced guest experience.
TD: How does the strategic partnership work?
ET: With a 1-click integration, Duetto sends dynamic rates and room availability to Oaky. Using Oaky, guests automatically see only available rooms and dynamic room upgrade supplements.
TD: Why do most hotels miss some opportunities in increasing their revenue (e.g. upselling, dynamic pricing)?
Most hotels today still aren’t using a Revenue Management System. In today’s market especially, using an RMS is critical to maximising revenue potential in order to dynamically price rooms based on demand. As for upselling, most hotels that are upselling only offer a small set of deals (typically room upgrades, Early check-in and Late Check Out) at static prices, effectively leaving money on the table. It is when combining best practices around RMS (dynamic pricing) and Upselling (delivering the right deal to the right guest at the right time) we have seen hotel chains like H-Hotels drive unparalleled results in terms of revenue maximisation and guest satisfaction.
TD: What are the trends in hospitality that you see this year and how do you plan to capitalise on them?
ET: The biggest trend we’re seeing this year is the rebound of travel with an increase in the quality of the stay. Transient travel has already picked up strong in many regions, while business travel is lagging behind. That said, business travel is increasingly becoming a mix of business and pleasure, bleisure, which creates more opportunities for hotels to grab more share of the market.
Moreover, there is a trend of GOAT effect (greatest of All Travels) with an increase in spending on experiences to catch up from the last few years. Oaky has seen an increase in average spending of 22% since the beginning of the year.
This year will be all about putting the guest in focus, and we are capitalising on this by continuing to deliver hyper-relevant offers at the right prices and enabling the guest to make these trips memorable occasions and catch up on missed celebrations.