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Strategies to Boost Hotel Revenue and Profit

Strategies to Boost Hotel Revenue and Profit

The competition in the hospitality industry is getting fiercer by the day, causing hoteliers to consistently come up with new and innovative ways to increase hotel revenue. To make it easier for you, we have put together some fool-proof strategies that will help you get an edge in the hotel industry. Read on.

Use Revenue Management Software

The first tip is to use AI-driven hotel revenue management software to optimize room bookings throughout the year no matter the season. Typically, a revenue management system predicts demand by analyzing market competition, previous booking patterns, and various other factors. Based on the forecasted demand, it suggests optimum rates that encourage bookings, so when the demand is low, the rates are dropped in real-time. Similarly, when the demand is high, the rates are peaked. In both cases, the aim of intelligent revenue management software is to maximize hotel sales.

Offer Customized Experiences

The success of a hotel business largely depends on word of mouth marketing. So, you must ensure that you offer your guests customized experiences that they remember and recommend. Here’s an example.

Christina booked a stay in a hotel in the year 2019 for a short getaway. Upon checking in, she asked for a pool-facing room. In the year 2020, she books stay in the same hotel, and as soon as she confirms the stay, she receives an email that reads, “Thanks for choosing our hotel again, Christina. We have reserved you a pool-facing room. Please click here if you’d like to book a discounted massage at our in-house spa.”

The customized guest experience immediately makes Christina a loyal customer and it is very likely that she would recommend staying at this hotel to her friends and family.

Target Guests Based on Market Segments

Next, you should make use of advanced technology to replace human efforts while collecting data. Details such as the nature of travel, amenity preferences, dining habits, total spending, and guest activities must be recorded during the guest lifecycle. These details can then be analyzed using intelligent algorithms which would help you have a clear understanding of the target market segments of your hotel. Then, once you have a better understanding of your guests, you can employ different strategies to target each group specifically.

For example, you can upsell liquor to your guests who book stays for business and leisure and increase your revenue per booking.

Work on Your Hotel’s Website

Your hotel’s website is the face of your business, which means that it can make or break your hotel growth. So, make sure that your website is what you can call a great website. Here are some tips to help you with that:

  • Offer a virtual visit to the property through 360-degree images.
  • Post reviews and testimonials.
  • Use all the keywords that your ideal guests use in their searches.
  • Make sure that the website speed is good.
  • Add contact forms, CTAs, and other elements to make the user experience smooth and hassle-free.
  • Highlight the USP of your hotel.

Leverage Social Media Platforms

Being visible and active on social media is a great way to keep your hotel at the forefront of your guest’s minds. This way, when your guests consider traveling in your region, they will think of you. Currently, Instagram is the top choice of hoteliers to promote their hotel business, so here are some effective tips to help you use Instagram as a promotional tool.

  • Switch to a business profile.
  • Post “instagrammable” corners of your property.
  • Repost pictures by guests taken at your property.
  • Post guest reviews and testimonials.
  • Roll out contests with tempting rewards, such as a free 2-day stay, to encourage participation and promotion of your hotel.
  • Highlight the unique selling points of your hotel.
  • Be detail-oriented when posting pictures such as the layout of a breakfast spread or innovative bedding.
  • Collaborate with Instagram influencers to reach a wider set of audience.

If you use these hotel strategies diligently and you will certainly see a huge revenue boost in your hotel business.

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by Karan Iyer // Karan Iyer is an end-to-end digital marketer and blogger who inherently understands the hotel industry with his hospitality background. Karan knows how to convert the pain points and challenges of the hotel industry into business opportunities. He also shares industry trends, insights, and news to help his readers stay up-to-date.

Opinions expressed by contributors are their own.