Exploring Alternative Revenue Sources for your Hotel20th July 2018
Discover powerful hotel revenue management tactics that will diversify your hotel’s revenue.
Anticipating consumer demand, optimising your inventory and adjusting your room prices accordingly is the traditional definition of hotel revenue management. Business practices have largely evolved over the past few years and revenue managers need to take into consideration more factors than ever before. They need to be aware of other distribution channels and potential commission – not to mention an increased pressure to find sources of ancillary revenue.
As one of the most reliable hotel management companies in the industry, you can trust the advice from our team of experts. Here they explore which alternative techniques you can use to increase your hotel’s revenue.
Create bespoke customer experiences
Bespoke experiences let your customers know how much you value their business. A positive customer experience enables you to stand out from the competition and attract new guests. The right approach is not purely price-led – your hotel needs to focus on added-value by creating enriching packages and offers. You can do this in several ways, but we suggest making sure that guests are aware of additional options or up-sells throughout their journey; this could be dinner, a spa treatment or even a round of golf.
From the moment they view your website right through to when they book and check in, their journey should be full of attentive service and an anticipation of their needs. Don’t forget to include these up-sells on promotional marketing around the hotel, as this will allow you to generate ancillary sales at every opportunity and increase the average spend on site.
Emphasize customer loyalty
Your company values repeat custom, and one way to let guests know their worth is to develop and maintain a strong loyalty program. Doing so will help your customers feel valued and give you the opportunity to upsell, whilst giving back to them in return. Incentivise your guests to book directly on your website with exclusive offers, such as booking direct for a free breakfast or drink, complimentary stays or room upgrades.
You want to steer your guests away from OTA’s and reward their loyalty to you. Don’t forget guests that may visit in different capacities; it’s not all about residential guests, so don’t forget about local residents who can benefit from club memberships and generate additional revenue.
Create partnerships with local attractions
Hotels serve as a base for many travellers and there is much to be gained from working with local attractions such as a zoo, museum or shopping centre. Create bespoke packages for guests and they won’t want to stay anywhere else – this will not only encourage loyalty, but will enable a seamless transition from price-led offers to full experiences.
Research shows that guests tend to value experiences more, and without stepping back from the guest journey this tactic will also likely increase exposure for both the attraction and the hotel; you can both promote the experience or offer on your websites and social media channels, meaning double the visibility.
Offer gift vouchers
Gift vouchers are a great way to generate additional revenue and to introduce a new audience to your property. The likelihood of guests increasing their spending once on-site is high, and so this new clientele can become a valued, repeat guest. Ensuring a pleasant experience will increase the chances of them coming back, and a satisfactory gift voucher or gift experience will only further showcase your hotel’s offering, and in turn encourage more sales through word of mouth or online reviews.
“Hotels are under pressure when it comes to the long-term profitability of their business. We work together with our hotels to ensure that they maximise their revenue opportunities and develop alternative methods that will guarantee other sources of revenue. Our consultative approach for revenue management combines support, meetings and reports so you are able to make the best decisions for your business.”
Naveed Khan, Revenue Director