HOTEL TECH: QUICK TIPS TO BOOST REVENUE
Hotel Tech Live is always a worthwhile event in the hotelier’s annual calendar. A chance to rub shoulders with like-minded professionals from around the UK and beyond, as well as a good opportunity to explore all the latest tech and skill-up with talks and launches. For anybody who missed my panel discussion about “The Best Ways to Boost Hotel Revenue”, these are my notes and thoughts on the questions posed…
THREE WAYS TO BOOST HOTEL REVENUE:
Long-term – Review every guest segment and create a point of difference for each. This will help you to trade on more than just price. Create personas to help with this. It’s helpful to get members of your team to help with this, use it like a brainstorming exercise. You’ll be surprised how many ideas there are.
Short-term – Sell right to the last minute. If you’re a destination hotel, a late availability page can attract huge engagement. For hotels that I work with that have one, it’s always one of the 10 most popular pages. The result? Quick, commission-free bookings for little effort. Don’t pat yourself on the back for what you achieved, feel bad about what you didn’t.
Mid-term – Consider getting early bookings from your database at preferential rates - so front-loading. This isn’t a new concept, it’s the core of dynamic rate management, but it isn’t out of reach - even for small properties without a dedicated Revenue Manager. You can use this approach to reward guest loyalty - offering preferential rates - and you can then hold your rates strong in the public eye – yielding accordingly – with the help of a late availability page if required. Don’t give people cause to question why you’re cheap; instead reward loyalty and accrue bookings at the lowest possible cost.
MORE UNUSUAL STRATEGIES TO BOOST HOTEL REVENUE
Gift vouchers are massively overlooked. Choose a platform with ‘secret deal functionality’. Create vouchers with a limited redemption period – 3 months for example – discount and package them and drive bookings at a time that suits. One of my clients ran a Black Friday sale last year, we generated sales of over £80,000. They made great Christmas gifts and all had to be redeemed by the end of February so drove occupancy when it suited. Furthermore, it’s cash in the bank…and almost a third aren’t redeemed (so go straight to the bottom line)..
WHAT IS THE MOST EFFECTIVE WAY TO INCREASE THE NUMBER OF GUESTS?
Selling what they want, when they want to buy it. Controversially for a marketer, I actually think you probably already get enough people to your website. Your website needs to be conversion hungry, and there needs to be tactics in place to get the visitor to do what you want them to NOW on your website. Scarcity, packages and a point of difference are the name of the game, especially for destination properties.
WHAT ARE THE MOST EFFECTIVE WAYS TO INCREASE TRANSACTION SIZE PER GUEST?
Packages. This can apply to any area of your business. Weddings, conferences and rooms. F&B less so, but still so! Create something that makes the buying choice easy and gives you a point of difference. Get the guest or the booker to your venue and woo them. A wedding package for 50 guests at £4,995, for example, will typically end up looking close to £10k or more once you get them to your property. I cannot stress enough: MAKE IT EASY FOR SOMEONE TO BUY SOMETHING. Again, point of difference underlines this.
WHAT ARE THE BEST WAYS TO INCREASE BOOKING FREQUENCY?
Your hotel’s data. Segment it, identify your superstars, people with potential to become superstars and your sponges – people that you invest money on marketing to but haven’t been for some time. Stay in touch with the people who are most valuable to you, and don’t overlook mailing; postal mailings are not covered by the GDPR and delivering something tangible can have great results. Create VIP benefits for your best guests, and invite them to sign-up for instant rewards - every time they stay.
WHAT BARRIERS ARE THERE TO IMPLEMENTING THESE IDEAS?
Nothing. None of them are high investment. They’re all about doing what you do now, perhaps just a bit differently.
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