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3 Simple Tactics to Increase Hotel Revenues

Posted on Mar 16, 2018 8:55:00 AM

Naturally, you want your hotel to provide outstanding service that results in happy guests. But in order to keep doing that, you also need to be drive revenues.

When considering how to increase hotel revenue, one obvious way is to ensure your employees are happy. Happy staff make the strongest marketing agents for your hotel. But beyond a happy staff, what else can you do? Consider employing these three simple tactics when looking at how to increase hotel revenue.

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Go for incremental revenue

Whenever a guest checks in, offer the option to upgrade to a better room at a slightly higher rate. “Would you like the junior suite overlooking the gardens for only $20 more than the standard room you booked?” Many guests will take you up on the offer. You can also make your branded hotel products – like towels and toiletries – available for purchase (avoiding the whole “accidentally” packing them in luggage before checkout!).

And one less obvious way is to price rooms higher than your competition. Yes, higher. A 10-year study of more than 4,000 hotels throughout Europe, and a Cornell University School of Hotel Administration study of U.S. hotels, found that hoteliers who maintained higher average rates than their competition actually generated higher revenue.

Partner with local businesses

Drive additional customers to your hotel by partnering with local businesses that also attract travelers and tourists, like amusement parks, restaurants, museums and local events such as music concerts. Offer discounted tickets, or special packages for guests attending an event. This creates a win-win-win situation, benefiting your business partner, your guests and your bottom line. It also provides a great opportunity to upsell additional services such as taxi transfers, dinner reservations, flowers and more.

Make the most of your website

Increase hotel revenue by making your website the best it can be. And you can start by speeding things up. A slow website can slash your conversion rates. Research shows that up to 75% of people will leave for a competitor’s site to avoid dealing with delays. In addition, make sure your site tells a compelling visual story. Studies shows that 67% of website visitors believe clear, detailed images carry more weight than customer ratings. And even more interesting, hotel properties with more than 100 photos have a 238% greater likelihood of generating a booking inquiry. You can also gently persuade guests to spend more by choosing hotel software that analyzes guests’ data and automatically offers tempting add-ons within the booking process.

Interested in getting more ideas on how to increase hotel revenue?

 

Contact Pegasus Solutions

 

Topics: Pegasus Solutions, Hotels, Blog, increase hotel sales, increase hotel revenue

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