Patrick Bosworth, CEO Duetto

1. From Revenue Management to Revenue Strategy

2. Agenda
▍ Digital Disruption
▍ The Impact of an RMS
▍ Revenue Strategy & Open Pricing
▍ A Real GameChanger
▍ Duetto Today

3. Digital Disruption

4. Industry at a Crossroads
1970s 1980s 1990s 2000s 2010s 2013
Separation of
ownership,
brand, and
management
Product
segmentation;
financial
engineering
First online
booking;
enter Expedia
Online
distribution
explodes
complexity
Crowded
value chain
Meta search;
enter tech
giants & new
gatekeepers

5. THEN NOW NEXT
Market
Power
10x
1x
Rise of Gatekeepers
Threats and Opportunities
GDSs OTAs
Meta
TMCs
Google/
FB
iOS/A

6. Historically Travelers Booked Directly
with Stay Brands
6
Consumer Stay Brands
Courtesy

7. Getting between your customers
Consumer Stay Brands
v
Booking Brands Courtesy

8. Multi-Dimensional Purchase Path
6.5 Digital Touch Points
Visit up to 38 Websites
Over 6 Day Period
Including 10
Hotel Websites

10. New Players Value Shift
$303B $672B $400B
$12B $74 $17B
$20B $13B $9B

11. A Growing Problem
▍ 300 channels and growing
▍ Unprecedented consumer transparency
▍ Limited knowledge/visibility for hotels
▍ Declining profitability

12. Customer Acquisition
Comparative Costs as % of Revenue
Revenue
Cost %
3-6% 4-6%
15-25%

13. Commissions are Skyrocketing
37%
20%
2009 2010 2011 2012
%
Increase
Commission
Increase
Total Revenue
Increase

14. Elevating your Revenue Strategy

15. Regional
Office
Owner Hotel Brand
Property
Management
Collaboration across hotel
Operations
Sales &
Marketing Distribution
Revenue
Management

16. Win with Insights
Customer-Centric Data Sets
Macroeconomic
Data
Air Travel
Competitive
Pricing
Reviews &
Social Media
Web
Shopping
Weather

17. What if We Could Understand Future
Demand?

18. Optimize Every Booking
Comprehensive
Information
Open Pricing
Actionable Insight
Right Price
Right Customer
Right Channel

19. Redefine Pricing Strategy
▍ Independently price every single segment, offer and
room type
▍ Maximize revenue over high demand and need
periods
▍ Keep all channels open and benefit from the
“billboard effect”
19

20. Questions?