As each year goes by you might be starting to think about maximising revenue for your hotel business to put in place for the next one. We’ve compiled some of the best ways for how to maximise hotel revenue that you can start now!
Analyse your competition
It can be easy to get caught up in what your competitors are doing. Comparing yourself to them is not always best for your business. However, when implemented correctly, you could gain valuable insights into how you can get ahead.
Consider your prices, offers and unique selling points of your hotel- now look at the same from your closest competitors. Are they doing something that you feel you should be? If so, then think about what that could look like in relation to your own business and if it would really increase your revenue. Or perhaps you are doing something that you feel they have missed. In that case, shout about it! Get the word out about your amazing selling point, something that you can offer that no one else does- or at least not as well as you.
Drive traffic to direct bookings
Reducing the costs of getting customers to stay with you is one of the best tips in maximising hotel revenue. One way to do this is to cut out the middleman, also known as Online Travel Agencies (OTAs). This generally leads to higher profits, as you won’t need to pay out for that deducted commission fee for a large portion of your bookings.
That isn’t to say that you should cut all ties with OTAs, as they can be beneficial in catching those who don’t want to book directly.
Encourage user generated content
Simply put, maximising your revenue for your hotel would mean having more guests staying at any one time. Therefore, more bookings are needed. So how can you do this without breaking your marketing budget?
People trust word of mouth from those they know more than marketing or sales teams. Utilising this fact can help you refocus your marketing strategy to drive more people into booking at your hotel.
One way to do this is to encourage customers to leave a review for your hotel, especially if they have come into contact with a member of staff and mentioned they had a good stay. These are not only great for other people who are looking for reviews, but also to post to social media to spread the message of your great hotel even further.
In the same vein, reposting content that your visitors post to social media that include your hotel or hotel’s location tag will also be beneficial. If a potential guest can see that other people have enjoyed their time with you, then they will be more likely to book.
You might think ‘how can I encourage this user generated content without being pushy?’. The answer is both simple, and complicated. The heart of any great experience in a hotel is the customer service, so creating a focus amongst the staff on this issue is likely to see a boost in happy guests and therefore more happy reviews and social posts.
Avoid mishaps where possible
This one is not always possible, as you never aim to have something go wrong in your hotel. However, there are smart investments that you can make that decrease the chances of them happening in the first place. For example, purchasing a portable dancefloor that contains LED lights can be a pricey expense, especially if it malfunctions and needs replacing. Not only would this put you out of pocket, but would also lead to some unhappy guests within your event space. As mentioned above, happy guests will often lead to positive reviews for your hotel. Unhappy guests will either not recommend your hotel to their friends and family (therefore reducing the free word-of-mouth advertising you could utilise) or post negative reviews.
Splashing out on quality products will not only save you money from not needing to be replaced frequently, but can also garner more happy guests- which will ultimately lead to you making more money. For information on our sister sites portable dance floors, check out their range or contact the team.
Prompt any cancellations to rebook
Cancellations are unavoidable- maybe the guests fell ill, or travel plans changed. However, that doesn’t mean that you should just let them go. The guests that cancel for whatever reason are already people interested in staying in your hotel. This means that it would be easier to market to them again to get them to rebook, than it would be to acquire brand new bookings.
All it takes is a few automated emails to try to get them to book again with you. Start by sending an email to acknowledge their booking cancellation and offer to rebook them for a later date. You could also include a short questionnaire to find out why they cancelled if you aren’t already aware.
The next few emails after that should include information about your upcoming offers and deals to encourage them to book again. However, if they don’t interact with your emails after 5 or so have been sent to them, look to put them on a different mailing list. This way you can still have a touch point with them, without crowding their inbox.
Look ahead for changes in demand
There are often things outside of your control that will cause a change in demand. For instance, bookings in hotels are frequently seasonal, or based around the school calendar. Or maybe a specific events season is coming up, like school proms or christmas parties.
Ensuring that you are ready for these changes, and letting your potential guests know you are ready, will boost your bookings and revenue during the busier periods. This could mean that you need to pump out some extra marketing to put you in front of those who need a little nudge to book.
Or even invest in some new equipment to make these demands easier to meet- such as including a portable bar for larger events to reduce waiting times at your main bar.
Which leads us onto our next point…
Promote your rooms and hotel’s selling points
Do you have something in your hotel rooms that sets you apart from your competition? Maybe you have an exquisite bar or restaurant attached to it? Think about what you have to offer during these high demand periods to draw in the crowds and outperform your competitors.
If you worry that you might have no space in your hotel, think about investing in foldable equipment. Portable bars can help you attract new customers. More about this you can read on our blog.
Use a mix of word of mouth and more traditional marketing methods (search ads, remarketing, email marketing etc) to reach those who are needing a place to stay or a function room to hire. Think about the offers you have on during these times- do they match the season you’re promoting? Is there something extra you could bring in?
For more information on how you could maximise your revenue through using a portable bar for events, contact a member of the Barlok Bars team today or check out our range of portable bars available.