How can hotels increase revenues

With these seven steps, you can get a head start on increasing your profit today. If you want to hear more ideas on how to increase your hotel revenue or chat with us about your booking engine or PMS , give us a shout.

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Full Name. Select Yes No. Minor Outlying Islands U. English Spanish Portuguese. By Cloudbeds Published on March Build a road map Before you can get started on planning strategies to maximize bookings, you need to know where your business currently stands in terms of revenue and marketing efforts. Create guest personas to segment your target markets A key component to marketing your property brand is creating buyer or guest personas so you can tailor your marketing efforts accordingly. Also, when potential guests see a negative review and notice that you apologized and handled the situation professionally they are more likely to perceive the bad review as an exception.

When replying to negative comments, make sure to recognize the feedback, thank the person for it and ensure that the issue will not occur again. There are many ways to ask guests for feedback. Would you like more information on this topic? Check out our blog post on improving your guest review scores.

The hotel sector is highly price-sensitive which means that value is essential. As mentioned in our article regarding successful revenue management, focussing on value is key. There are two main steps to promoting your hotel and thereby highlight its value. Second, keep the promise you make and ensure that the value promoted is actually delivered to the guests when they stay with you.

It is proven that engaged, empowered and motivated employees perform better. To assure that this applies to your employees, you must ensure that the full team is on the same page regarding all aspects of the hotel, concerning the quality of services, the way of communicating and overall strategic goals of the hotel.

There are many other ways to bring value to your hotel, such as upgrading your facilities, adding extra services and overall providing a unique and memorable overall guest experience. Social media platforms are often underestimated, but are a great way to reach your guests. When using these digital tools it is smart to develop a strategy in order to stay consistent and organized.

A good first step is to choose which platforms to focus on, depending on your type of accommodation and the potential guests. These days, Instagram is a popular platform for hotels. If you are already using instagram, or if you are considering it as one of your promotional tools, our recent post about managing Instagram as a hotelier is a must-read. After the preferred platforms are chosen, a schedule which defines when you will post what kind of photos or updates needs to be agreed upon.

There are endless options for sharing promotional content online. A few suggestions are to post photos of your hotel itself, the area in which it is located or what activities to do nearby your hotel. Other options include introducing staff members with a photo and small bio description, or sharing the best customer reviews. Of course, influencers have taken the stage in many social media platforms and are a very powerful method of stimulating demand towards your hotel as well.

By inviting an influencer that has a strong customer reach in your target market you can increase demand considerably. Hotel rooms are a powerful tool for every revenue manager. The commercial positioning of your hotel can be improved by implementing room type segmentation. In short, this means offering rooms with different sizes, prices and designs in order to reach a wider audience.

It is best to decide during the design and concept development phase what the most profitable room types are for your hotel, so the development of the hotel can be adapted accordingly. Discover a detailed treasure trove of information about implementing room type segmentation right here on our blog.

Upselling is a smart and efficient way to encourage guests to spend more. This way of driving ancillary revenue can be applied online as well as offline. Online you can use upselling tools which encourage customers to increase their spending by offering room upgrades for example.

Offline, upselling can be done upon arrival at the reception — by offering a last minute upgrade or an extra service. When applying this method, always be aware to offer the right upgrades at the right moment to the right guest. Our blog article about generating ancillary revenue management provides more tips on how to apply exceptional upselling methods at your hotel.

Similar to upselling, cross-selling can boost your revenue as well. While upselling is mainly focused on encouraging guests to spend more on the same product or service, cross-selling is concerned with selling complementary services.

These can be add-ons, excursions organized in cooperation with third parties or extras such as spa visits. Access more information about cross-selling in our recent blog post focused on incremental revenue boosts. Many hotels have spaces which are not currently used to their full potential.

These could be meeting rooms which are barely used or a lobby which is significantly larger than needed. Differentiating your hotel from the competitors can be accomplished in many ways. At Xotels we believe that specialization focused on a niche market is a great way to attract a different target guest than other hotels in the area. Also, appealing to a specific group of people allows new ways of increasing revenues, for instance, by offering services and products targeted specifically towards these guests.

As mentioned in previous articles, we have seen that focusing on attracting Luxury Travellers or creating a Pet-Friendly hotel can create many successful opportunities. You can also consider becoming a Family-Friendly or Female-Friendly hotel.

This type of strategic move allows you to create a different product offering and attract a target market that your hotel was previously unable to capitalize on. Currently, a wide variety of tools and systems are available for the hotel industry. At Xotels, we developed a Revenue Management System which is easy, efficient, affordable, and can be adapted to each individual hotel. Learn and practice basic hotel revenue management: as occupancy increases, so should your rates.

Find the right balance between promotional and group rates, both of which are traditionally lower than full room rates, and premium rates for the limited number of rooms remaining. Consider a graduated scale in which a certain percentage of rooms are offered at low group rates, others reserved for mid-range family or individual customers and a final, smaller percentage reserved to offer at high rates to last-minute arrivals or business travelers. Train your front desk staff in upselling.

If a customer has booked a basic room at a reduced rate, offer him the option to upgrade to a better room at check-in time for a slightly higher rate. Prompt staff to always make this attempt and empower them to offer certain extra amenities or a better tier of rooms to encourage customers to spend more. They must also know how to respond graciously when customers decline upselling offers.

Consider occasional promotions or one-time-only offers to attract new customers or fill rooms during the off-season.