How Can Hotels Increase Revenue Without Putting More Heads Counts
The idea of unbundling the hotel services and making them available to those who were not staying at the hotel was perhaps new in the West, but when I lived in the Middle East, expatriates often bought subscriptions to hotel gyms. t So many independent sports clubs.
If locals become hoteliers through Airbnb and others, why should not hotels offer local service offerings? The reallocation of underutilized spaces and services is what hotels need to do to stay relevant in a world where they no longer have a monopoly. the accommodation market.
The hotels at their base are time-based assets with hoteliers in order to maximize the amount of time each room is sold. However, due to the arrival and departure of guests, rooms are empty for large quantities of the day. The average hotel room remains empty for 7 hours between the departure of the previous guest and the arrival of the next guest, which has cost the hotel considerable potential revenue. In recent years, hoteliers have bridged these gaps with day reservations – selling the room for a few hours to new customers. However, a much more cost-effective technique is to fill these gaps by enticing existing customers with early check-ins and late check-outs.
Currently, hotels are waiting for guests to request early check-in or late check-out. However, if customers are specifically targeted with the offer, hotels can generate considerable additional revenue. According to HotelFlex’s experience, hotels can expect 20% of customers to convert, paying an average of 15% more than their room rate for greater registration flexibility. In addition, as the room does not need to be cleaned again, the revenue generated is pure profit and goes directly to the hotel’s results.
Here are some ways that hotels generate more revenue without hosting more guests: Adding special offers to contextually relevant interactions. For example, when a customer asks Alexa or Google Assistant about the pool, hotels share special offers for the pool bar. When a guest asks for places to dine, hotels share special offers for the hotel restaurant.
Schedule promotions added or added at specific times of stay. For example, Volara allows the hotel to schedule promotions via Alexa or Google Assistant to share information about the Sunday Brunch from 12:00 on Saturdays … or share information about the spa when it rains … or put highlight special events the property on arrival.
The offer of special “Alexa rates” for room reservations with voice feature can increase the automatic billing rate.
The frictionless nature of the voice means the guests actually use it. The personal and natural interactions facilitated by Volara’s software mean that promotions are more like useful suggestions and lead to higher conversion rates compared to other media.
The concept of a hotel as a focal point for excellent services (not just bedrooms) is very much in tune with the cultural trends of rethinking spaces, community centers and the desire for “experience”. Food, drink, spa, pool and meeting space are just some of the services offered in hotels, but smart hoteliers are only now transforming their properties to discover the additional revenue opportunities that can flow from their hotels. existing assets or services to create more revenue. With a true hotel CRM, hoteliers can take advantage of the opportunity to outbid ancillary services like these on existing room night bookings. Hotels can also use a hotel CRM to use their customer database to sell goods and services outside of the rooms, such as upscale gift shop products, yoga classes at the spa, restaurants at the pool. All based on past customer behavior and stated preferences stored in a hotel CRM that can be segmented for marketing offers.
Getting more guests comes with its own acquisition costs, either in commissions to online travel agencies or in cash on the hotel’s marketing budget. But the price strategy is leverage completely in the control of a hotel that has the greatest potential to make more money without selling more rooms.
The most important thing that hotel revenue managers can do is find the price for each booking date and the type of room that will make the property the most money. Do not consider the demand and simply sell your rooms at too low a rate to reach your forecast. Instead, measure the conversion and pick up when you change your prices. If you can raise rates and get people to book them, this is the most important indicator of demand.
An open pricing philosophy allows hotels to price their rooms more flexibly, setting rates for each booking date, channel, room type or customer segment regardless of static discounts on the best available rate.
Such an approach helps hotels to increase revenue while addressing the complex picture of digital distribution, where acquisition costs are rising and OTAs are innovating new ways to sell hotel rooms online.
Tides are changing in the hotel industry. Meals and other food and beverage programs become unique experiences for guests, and they are more than willing to pay for it. It’s a determining factor in what people are looking for when they travel and how they are looking to spend their money as a local.
Hotels have a competitive advantage in this area, as they can strategically use F & B programs to attract and retain loyal customers at home and on the road, while increasing revenue and building long-term relationships with customers. customers.
Today’s leading hotels are designing compelling programs that strategically integrate the resulting guest data into their entire hotel portfolio to create highly personalized experiences.
For example, greeting guests at the restaurant with special tables, marking reservations with customer loyalty status, or personalizing in-room amenities based on F & B purchases – even customizing hotel packages with F & B offerings. B. The common factor for all industry leaders is the use of technology to share and leverage customer data across the hotel and catering points to create exceptional experiences.