Working in the hospitality industry can be a real challenge. From the daily management involved in running a hotel to ensure a level of reservations and therefore sufficient income to make it profitable to the investment of the revenues in improvements for the hotel.
Hoteliers face a common dilemma: lowering the price of rooms can increase the number of reservations, but it does not always have to compensate for the losses of lowering prices and positively impacting profitability. In the long run, it’s not so obvious to increase a hotel’s revenue without raising prices or overspending. Depending on the situation and specific needs of your hotel, you can apply some strategies to increase hotel revenue. Let’s see them in this post, shall we start?
How to maximize hotel revenue?
Up-selling is a technique that you can apply to your hotel to increase profits. The goal of this technique is to offer the guest higher quality products or services during their stay or even during the reservation process.
Everything will depend on the facilities and the budget of the hotel. A voucher for the spa, an in-room massage, an evening with live music, a tasting menu… The possibilities are endless.
These are small improvements on what has been booked or wants to be booked: a way to increase the average sales ticket and improve customer satisfaction and experience.
Strategies to increase hotel revenue
To make the most of the possibilities of your hotel accommodation, it is interesting that you know the different strategies to increase hotel revenue. Of course, you can adapt these options to your needs and budget. Let’s see them.
A good way to increase profits is to boost direct bookings, which allow hotels to keep all the profits. For the reservations made via travel portals, a percentage of the benefit is shared.
To facilitate direct bookings on our website and keep 100% of the profits, it is necessary to optimize the website as much as possible and have good customer support. A good idea may be to open a direct communication channel, a real-time chat that can answer potential guests’ questions instantly.
Difference between guest profiles
Not all your guests are the same, not all of them have the same budget, the same tastes, the same concerns, the same age… Therefore, not all of them need or want the same thing. To tailor your marketing efforts to your audience, you’ll want to create guest profiles.
Know what the reason for your trip is (business, pleasure, family), how old you are, where you come from, what you have booked… All this data provides valuable information to improve and personalize marketing strategies so that they impact the right person and thus have better results.
To sell and take advantage of the services you offer, create and promote packages. For example, include in the price of the hotel room a massage session, a yoga class, or an in-room breakfast. This way, you make your guests use services that they would not have considered using otherwise. You will be selling experiences beyond a simple hotel night.
One of the most important points in the strategy to increase hotel revenue is to regularly review your pricing strategies. The demand changes every day, so it is essential to know the market trends and act accordingly.
Dynamic pricing is used to establish price flexibility for rooms based on how the market evolves: price increases as demand increases and vice versa. For example, if an event is being held in your city, you should know in advance that demand is going to be higher at that time and adjust prices in accordance.
Discounts for long stays
If you offer an attractive discount for each additional night you can encourage certain guests to stay longer and thus increase your income.
Another strategy to increase the income of your hotel is to increase your offer of services, such as a car or van to pick up or take people to the airport, room service, minibar, laundry and ironing service, breakfasts, tourist routes…
In short, all these ways to increase your hotel revenue are easily adaptable to your type of accommodation, budget and possibilities. Overall, the most important thing is to have the necessary tools to analyze and measure all the data related to your hotel and your guests. To accomplish this, you can use a platform like Goguest, which connects all the software and hardware of your hotel to digitalize all areas of your business, offering multiple functionalities through a unique solution, adaptable and scalable to your technological needs.