Effective ways to boost your revenues
Generating continuous revenue for hoteliers can be tricky. The fluctuation is unavoidable as hospitality is one of those businesses which depends on external factors, like holidays, weather, local festivals etc. The peak seasons may bring higher revenues but also have an added value factor that they can provide enough data to maintain the revenue generation during offseason as well. The simple idea circulating in the hotel industry is that, reduced room prices can boost the profits, however, it does not guarantee full bookings and revenue generation.
There are definitely certain conducts in the hotel industry that can help to generate an increment in the profits especially when the occupancy level is low. Here we discuss few methods that can boost the revenue generation and add value to your hotel business.
Analyse Your Room Occupancy Rate
The foremost step is to know where your hotel’s room occupancy rate stands. Note the total number of rooms, and how many are occupied then divide the number of booked rooms with your total number.
The occupancy rate will also be dependent on your hotel’s type, its location and the overall guest experience that you provide.
Assess the Off and Peak Seasons
Evaluating the off and peak seasons will be different for every type of hotel. It hugely depends on the location, cultural activities in your city, weather and popularity of the area. It is essential to know when the visitors are more likely to come as it will determine your future strategies for the increasing your revenue. This data will enable you to proceed with new ideas as well.
Gather your Guest Data
Understand your guest history and monitor the type of guests who have stayed in your hotel. Are they families, corporate visitors or millennials. This data will help you to take necessary measures according to your customers’ behaviour. You can now formalize your marketing strategy as you will be more aware of your target audience which will allow you to build a stronger revenue model.
Introduce Packages or Attractive Deals
Rather than deflating the room prices, introduce striking packages and deals that can attract customers to your hotel is a much better strategy. Offer add-ons that can persuade a visitor to choose your hotel while searching for one, and for instance offer spa coupons on a stay of a specific number of nights, dinner vouchers for couples, and a customized visit to a certain place in the city. You can also think of new propositions according to the location and places of visitor attraction in your area. Build partnerships with local festivals, clubs or any other happenings and you can also offer your guests a personalized trip.
Another exciting offer can be, giving upgrades to your regular customers or to those who are staying for a week or so, this is an effective way to mark your name in the guests’ minds and they will definitely prefer you upon their next visit.
Here comes the role of the all the gathered and saved data of your guests that will help you while preparing these deals and offers.
Proper marketing is the key to the success of any business and the hotel industry is especially dependent on a good word of mouth. As you have laid down your plans and packages now is the time to flaunt them on every possible platform. In the era of social media, more than a half of the campaigns are run on social media, and this can be utilized to your benefit. Exhibit on your website with the right call-to-action banners and update these offers on your social media pages and run ads.
A newsletter is a great way to keep your potential and regular clients updated and it can serve as an effective marketing tool. You can market yourself on various travel agency websites and platforms.
Keeping a keen eye on your competitors is also very important. Collect information about other hotels which are in the same league and offer same kinds of facilities as you do. This will assist you to have a competitive edge and plan accordingly. Set the price of your room with a close of monitoring of what others are offering.
Make the Guests’ Experience a Memorable One
The hospitality industry is all about serving the guests with an extraordinary experience. Build your place in such a way that any guest can feel the utmost comfort and pleasure. Build a relaxing ambience of your rooms, use high-quality linen and toiletries that add to the comfort levels of the guests. A room that is lavish and well equipped will definitely be the choice of any traveller. Use soothing tones for the colour of the walls, make it spacious enough to avoid a condensed look, the furniture especially bed and sofas should be comfortable and of high quality.