December 20, 2022
The success of a hotel is measured by its revenue and profitability. As a hotel manager in a competitive industry, it can be challenging to maximize your revenue while enhancing the guest experience. Below, we’ll discuss the four tips for optimal hotel revenue management that will also satisfy guest expectations.
4 Tips to Successfully Manage Your Hotel Revenue
1. Upsell Your Guests
Hotelmanagement.net predicts that from now on, “guests will spend 70% of the time on-property in their rooms.” To increase hotel revenue while making your guests more comfortable, consider offering room upgrades before their arrival. Some property management systems allow you to send automated emails which could include upgrade options and pricing so that guests can make the most of their stay.
Additionally, guests may not be aware of all your hotel can offer. Promote packages that have add-ons such as:
- Room service breakfast options
- Romantic dinners
- Family activities or meals
- Spa experiences
- Wellness promotion activities
When you provide options, you have a higher probability of increasing total revenue per reservation and making your hotel a destination for memorable stays.
2. Promote Your Hotel Loyalty Programs
When guests enjoy their stay and get rewarded for booking with you, they are more likely to book again. Loyalty programs can help increase customer retention, which can improve the stability of your revenue even during slow periods. As a result, loyalty programs can be a beneficial component of your hotel revenue management strategy.
You can personalize these programs by offering both loyalty and referral incentives, sending reminders to program members, adding promotional upgrades, and providing options for picking rewards.
3. Take Advantage of Dynamic Pricing
A “set it and forget it” tool — known as dynamic pricing — is a crucial hotel revenue optimization technique that allows you to set guidelines for room rates based on current occupancy, promotional periods, and booking dates. Your rates will automatically adjust using your set guidelines. Dynamic pricing has several benefits:
- Maximizing reservations
- Using real-time data to ensure rate accuracy
- Integrating with OTAs and your website
- Presetting pricing guidelines to free up your time
With dynamic pricing helping to maximize your revenue, you can focus on your guests, daily operations, and employee hospitality training.
4. Maximize Your SEO Efforts
Before a guest books at your hotel, they will likely use your website to do research and explore their room options. This is especially so for millennials — but they have to find you online first. Your hotel can establish a strong online presence through search engine optimization (SEO). SEO encompasses various aspects that help your website show up on the Google search engine results page (SERP). The more SEO techniques you use, the more likely potential visitors are to find and click on your website pages.
Investing in an SEO-friendly website can help bring visibility to your site and attract new guests. Increased visibility and the right strategy can help maximize your hotel revenue. For example, a direct booking feature allows users to conveniently book their reservations on your website.
Maximizing Direct Bookings
According to GlobeNewswire, the online travel market is expected to exceed $1835.7 Billion in value by 2028. A mobile-friendly and responsive design can allow users to find and book their reservations directly on your website pages using an integrated direct booking engine.
Additionally, paying attention to other SEO strategies, such as reducing your site’s loading speeds, can further enhance the online booking experience for your visitors, making them more likely to complete their reservations online.
Hotel Revenue Optimization Done Right
Hotel revenue management should be streamlined so that maximizing your revenue and enhancing the guest experience go hand-in-hand. You can lead your hotel to operational excellence with the tips mentioned above and the right hotel reservation software.
For more hotel management tips, download our Operational Excellence guide today.