After trying various tactics of shifting room rates up and down and getting limited results, increasing hotel revenue might seem much easier said than done.
But there are many other ways to boost revenue which often go overlooked.
In this post, we highlight nine ideas to increase revenue within a week, a quarter or over the course of a year.
3 ways you can drive revenue in just a week
1. Start upselling rooms, products and services
Encourage your staff to sell room upgrades, in-room breakfast or a late check-out when guests check in. This lets you generate more revenue from services you already offer. To take your upselling to the next level, cross-sell services from other departments, like spa treatments or in-room dining. For the best upselling and cross-selling results, start using a tech tool like Oaky. It lets you scale your upselling efforts by automatically offering guests a chance to upgrade their stay pre-arrival.
2. Create a strong local network
To help guests have a wonderful experience in your destination and boost your revenue at the same time, collaborate with local businesses. Promote the lovely restaurant down the street or work with local tour operators to offer unforgettable outings and adventures. Not only will this help you generate more revenue, it will also make your property a vital part of the local community.
3. Get your staff on board: Teamwork makes the dream work
Reward programs for guest-facing staff are a great way to motivate your team to boost revenue and can be implemented at reception, in restaurants and at the spa. Start with a one-week test and if that’s a success you can implement it permanently. You could also launch a ‘Beat the System’ challenge where restaurants and front office teams work together to beat the hotel’s upselling tool.
Drive more revenue this quarter: 3 easy steps
4. Focus on satisfaction and online reviews
Of course you want to make your guests happy, but how about going a step further and creating memorable moments with unique in-room amenities or by giving them a memento with a cool story behind it? When guests check out, encourage them to share their experiences in online reviews. Getting good feedback on TripAdvisor and OTAs will boost listings and bring more bookings your way.
5. Maximise low-demand days
Slower days are a blessing in disguise if you know how to make the most of them. Do some research to understand which guest segment to target during slow periods and create tempting deals for them. To make this work and outshine your competition, focus on offering value rather than just another discount.
6. Make your hotel a happening place with unique events and activities
People love to become part of the local community while they travel. You can make your property a popular meeting point for locals and visitors by hosting cool events like quiz nights, art shows, yoga classes or anything else you can think of. That way you increase revenue in departments other than rooms and build your reputation as a happening place to be.
3 Tips to boost revenue in the next twelve months
7. Harness the power of Google Hotels
Google Hotels is likely to shake up online distribution, so take this development seriously and learn about this new platform. Make the most of it from the start and you could reduce your dependence on OTAs by driving more qualified traffic directly to your website.
8. Analyse and optimise your distribution
How and where you sell your rooms has a huge impact on your profit margin. To make the most of your property, analyse your distribution channels and understand how well they are performing. That way you’ll get a grip on rate parity issues and eliminate undercutting, non-contracted third parties. It will also help you identify top-performing partners so you can nurture your relationship with them and cut ties with channels who cause more trouble than they are worth.
9. Explore hospitality tech solutions
Upselling, guest communication, data collection and satisfaction surveys - whatever you want to do, there’s a hospitality tech solution for it. Since a lot of exciting things are being created in this sector now, take time every month to research new developments. Most providers offer a free trial, so why not test the latest tools and keep the ones which work? Just think of all the time you can save and invest in creatively improving your customer service!
Which of these tips are you going to implement first?
If you’re not sure, bring your team on board and you’ll be surprised by their creative ideas if they sense they can play an active part in designing new revenue-boosting strategies.