A story of $5 million revenue growth, more direct bookings & happy owners

Revenue Management Strategies for The Modern Honolulu
From hotel to luxury destination: The Modern Honolulu.
A story of $5 million revenue growth, more direct bookings & happy owners


To reestablish The Modern Honolulu as a luxury destination—with rooms valued at luxury-tier rates. Declining rates and higher occupancy translated to greater costs. Higher than desired OTA booking volume hampered revenue growth. The hotel’s position in the market kept them from a position in Honolulu’s luxury tier. Something had to change.


The owners contracted with Miles Hospitality to reposition and rebrand the hotel. Our strategies included new revenue management, branding, partnerships with the luxury consortia, focus on market segments instead distribution channels, and improved online and offline marketing tools.

To reposition The Modern Honolulu as a luxury resort, we developed a new brand marketing campaign both online and offline and relaunched the website with new content, photography and videos aimed squarely at the luxury consumer. Our content marketing introduced the new brand as a complete destination experience.

To increase the property’s overall rates to better reflect those of a luxury-tier hotel, we re-categorized room types and rates and yielded by available inventory for all market segments (versus overbooking the lead in room type and upgrading).

To reduce the volume of OTA business, we partnered with luxury consortia and local corporate accounts. We launched aggressive campaigns targeting the group incentive market.  We set up parity across all distribution channels. And we redesigned the booking engine and introduced content showing the value of booking directly with The Modern.

Hotel revenue increased by 19% with the same occupancy year over year


After Miles Hospitality took over revenue management for The Modern Honolulu, total hotel revenue increased by an impressive 19% with the same occupancy year over year. Specifically, in comparing 2013 to 2012, overall rate growth was up 15% while out-of-room spend increased 25%. Meanwhile, OTA bookings decreased by 33%—replaced by increases in leisure direct, transient negotiated, wholesale and group room nights, the last of which grew by 100%.

Break out the ukuleles. Aloha!


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