How to increase hotel revenue without increasing occupancy

While there is a direct correlation between the number of rooms a hotel features and its potential to generate revenues, increasing the occupancy does not in any way guarantee better returns. That being said, there are a bevy of other efficient strategies for under-performing hotels to overcome the challenge of plummeting demands and leverage their revenue earning opportunities. Here is a list of smart tips from hospitality experts that can help hotels bolster their revenue management model and promote higher sales.

Offer more value for money

One of the major reasons why some hotels regularly perform better than the others is that they are essentially providing a greater value for money to their guests.  Travelers nowadays are more inclined towards getting better facilities and experiences and are not necessarily driven by pricing. That said, while your revenue model might not allow room for slashing your accommodation rates, it is a great idea to add more value to your travel packages by means of add on services such as free airport shuttle, adventure activities, spa services and more to attract your target audience.

Focus on social media marketing

The social media offers an incredibly efficient platform for hotels for not only expanding their customer base but also scaling their seasonal revenues. As such, it is absolutely essential for all hotel businesses to enhance their online presence and utilize the opportunity for engaging both new and existing customers. Travelers nowadays base their hotel reservation decisions on the social media presence of potential hotels. In addition to being advertised across all the major travel booking websites, hotels must also focus on obtaining positive reviews and ratings from their guests and encourage them to share their testimonials as well.

Review and revise your revenue management strategies

Revenues management essentially relies upon your ability to envision the distant future and compare the projected situations with what you have encountered in the past. To put it in other words, it is all about identifying your high and low occupancy periods, analysing your average rates and working towards striking a balance between the demands during periods of lull. It is a good idea to do a comprehensive market research of your local area and identify the occupancy generators that might help boost your hotel revenues during slow times. Collaborating with your local neighborhood organizations such as art festival organizers and such will help keep the interest alive in your services and lure more guests to your hotel when the demand is low.

Train your staff

As aforementioned, the modern age traveler prefers experiences over material luxuries. Having said that, the hotel staff plays a critical role in providing a rich and memorable experience to the guests. All the various members of the staff including concierge, housekeeping, reception, help desk, room service, kitchen and so on must be well trained to handle the unique requests of the hotel guests, and provide them a personalized experience through a more human engagement.

 

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