It is no secret that as people love cheaper... or rather
discounted things. This including clothing items, gadgets or even holiday accommodation.
But as for accommodation owners, the lower price the more
bookings, right? Wrong!
It can be easy, and very tempting, to think that slashing
rates to virtually nothing will sell more rooms and increase room revenue
during the week.
While it may sell a few rooms, the discounting strategy
rarely sells enough to offset the reduced revenue.
It’s important to keep in mind that lower rates don’t create
demand; they can set the wrong expectations for guests and erode your price
integrity. Instead, think of adding value to beat the midweek blues.
Here are 10 effective ways to boost your business’ low
occupancy and revenue:
Persuade your guests to spend a little more through your
online booking engine by adding carefully thought-out extras such as a romantic
package or champagne breakfast. You could also consider asking a guest during
check-in if they would like to get a better room for a slightly higher rate.
This is simply about letting your guests know what options
are available to them. If it’s out of sight, it’s out of mind! Use your front
desk or other designated area to take advantage of point-of-sale opportunities
such as car rental or tickets to events and tours. Adding this extra value to
guests not only brings in revenue but also provides a better traveler
experience.
2. Offer a few select
‘holiday’ products
We all know travel customers often want to help themselves
to some of the added extras provided, such as soaps or shampoo, and you should
want them to. According to Forbes, when guests take their toiletries home with
them, it’s a sign you have done a good job picking the right products. You
should also be hoping those guests will think of their stay when they use that
soap or shampoo later on. Whatever the product may be, give guests something to
remember their time with you and add a new revenue stream by making some of
your products available for purchase.
For example, sunscreens, shampoos or even towels for the
beach. (This might even prevent them from ‘accidentally’ packing your bathroom
towels in their bags before check-out!)
3. Switch from
halogen lighting to LED
LED lighting lasts almost 10 times longer than halogen
lighting and could save you enormous costs in the long run. Investigate all of
your LED options and see which ones work best for you and your property.
4. Offer guests a bit
of festive cheer during the festive season
During the festive season, many guests want to feel more at
home by celebrating with a small holiday tree in their room. For that special
touch, consider offering a fully decorated in-room Christmas tree for a small
price.
5. Do a booking
channel audit
Draw reports on all of your booking channels using your all-in-one
booking management solution. Booking channels such as your website and OTAs
should be regularly monitored to see where the best performance lies. If one
booking site is performing better than another, see what it is that could be
attributing to that performance (such as great images, or better descriptions),
and adjust your other channels accordingly.
6. Do an energy
assessment
Doing an energy audit can identify areas where you are
overspending and will allow you to either find a better provider, or keep spend
to a minimum. Check everything that consumes electricity, gas or fuel. You will
soon see where you are spending the most money and can make adjustments to
lower your overall expenses.
7. A customer referral
scheme
Satisfied customers should be encouraged to refer their
friends and family to stay at your property. Offer your potential guests
incentives such as a promotion code, which you can easily set up in your
all-in-one booking management solution to be redeemed at the time of booking on
your website. A post-stay email can also be set up to automatically send to
your guests after they leave, with a specific promotion code and discount.
Remember: Word of mouth is often the most powerful marketing tool.
8. Welcome pets
You may not warm to pets, but many travelers would love to
travel with their furry companions. If possible, make your small hotel
pet-friendly so you not only attract a different segment of travel customers,
but can be in a position to charge a little extra for your rooms.
9. Discounts for
extended stays
Some guests are quite flexible with their travel schedule
and might want to stay an extra night or two. Offering a 50% discount off an
additional night, when paying the regular rate for the first few nights, could
ensure a higher occupancy and incremental revenue.
10. Network with
others in the hospitality and tourism industry
Networking with other businesses in your area that attract
tourists and travelers could increase revenue and add more value to your
guests. For example, you could offer a discounted ticket to your guests for
local attractions, which could increase their revenue and, in turn, provide a
better guest experience. This can work both ways as businesses can drive their
customers to your property if you offer a special rate.
If you remember to ensure you provide the best guest experience you can, be a savvy spender, and jump on opportunities where you can
maximise your booking revenue, you will be well on your way to running a successful
hotel and enjoying that holiday at the end of the year.
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