Revenue and profit are the guiding indicators if business is successful. These are numbers we monitor and optimize on a day to day basis, and hoteliers know that occupancy and RevPar are key factors of influence. But what other levers are at our disposal during downturns or slow periods?
During our time providing services and solutions to many hotels throughout Asia, we also provide consulting services around revenue generation, and have included these strategies as suggested pathways to new revenue growth and higher profit margins.
Upsell your booked guests
Get in touch with your guests before their scheduled arrival to offer extra amenities or upgrades. Whether it was a direct booking or through an OTA, use the messaging systems in place to welcome your guest and provide a menu of offerings at a special rate for their stay. This can include spa services, room upgrades, pre-booked shuttle, or other specific offerings exclusive to your hotel. The best time for outreach will typically be 2-3 weeks before their arrival when they have started actively planning for their trip.
Focus on increasing RevPar
Your RevPar is a key indicator of your yearly revenue and can be influenced with a strategic revenue management plan. Start with highlighting your premier rooms with images that capture the key room amenities that are in demand – ocean views, spacious floor plans, sitting areas or luxury touches. RevPar is also directly affected by cancellation rates. Guests like to have the option of cancellation but by adding a non-refundable rate you can decrease your cancellation rates and realize increases in RevPar.
Target the right guests
Target specific regions with your paid marketing and OTA tools. Travelers from certain regions tend to stay longer, pay for more room upgrades and spend more in-house during their stay. These travelers can be easily targeted with geotargeting through your Google or Meta Ads, as well as tools that are extra charge through OTAs. Depending on your location, choose regions that will have to travel 7+ hrs to your destination. These will most likely be longer stays and higher spend. Provide long term stay packages for the growing market of digital nomads. These travelers will stay longer, higher rates of referral and more in-house spend over their stay.
Create a unique hotel experience
Look for opportunities to highlight your local community and culture. Travelers are looking for experiences beyond the standard stay. Boutique hotels are gaining ground over chains as the decor is unique and characteristic – often feeling more like a well designed home than a sterile hotel environment. Bring in local musicians, wine tastings, afternoon teas with regional treats. These small touches should be advertised as part of the complete experience. This will help attract a higher price point and win out against competition.
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