Techniques and strategies to increase turnover in your hotel
In this blog post, we explore the main techniques and strategies, plus many useful examples, for increasing turnover in your hotel or lodging facility.
Running a hotel can be a complex undertaking, especially when it comes to increasing turnover.
However, there are several techniques and strategies that hoteliers can use to maximize their property's profits.
In this blog post, we will explore the main ones, including tips and examples for implementing them in your business.
With proper planning and careful execution of what you will read, you will be able to see a significant increase in your hotel's revenue.
Let's get started.
First strategy: personalize the offer
Personalizing a hotel's offering means creating customized packages and services to meet specific customer needs.
This can include creating packages for special occasions, such as weddings or luxury vacations, or creating additional services, such as excursions, spa treatments, and themed dinners.
With a customized offer you are able to:
- differentiate yourself from the competition by offering something unique to your clients
- increase prices and your profitability because customers are willing to pay more for exclusive and personalized services
- increase customer loyalty and the likelihood that they will book with you again
- create additional revenue sources through the sale of new services
Second strategy: leverage technology
Using technological tools can help increase hotel revenue in several ways.
- Through a booking engine: a booking engine integrated with the availability and pricing management system allows hotels to set dynamic prices based on demand and allows customers to book directly online.
- Through revenue management software: these tools analyze data on bookings and demand to help hotels make informed pricing and availability decisions.
- Through operations automation: using technological tools to automate daily tasks, such as room cleaning and check-in/check-out, can increase efficiency and free up time to focus on more profitable activities.
- Through digital marketing: digital tools such as managing social media and creating online advertising campaigns can increase the hotel's visibility and attract new customers.
Third strategy: target a specific customer base
Addressing a target clientele means focusing promotional efforts on specific market segments, such as business travelers, honeymoon couples, or groups of friends on vacation.
The advantages of targeting a particular customer base include:
- greater effectiveness of promotional campaigns, as messages are targeted to specific, interested audiences
- greater chance of converting potential customers into actual customers, since the offer is tailored to meet the needs of the specific market segment
- greater chance of increasing customer loyalty, since the hotel can create customized loyalty programs for each market segment
- greater chance of generating more revenue, as the hotel can offer higher rates for services that are most in demand by specific market segments
Fourth strategy: cross-sell and upsell
Cross-selling involves selling products or services that are complementary to those already purchased by the customer.
In a hotel, for example, it could be selling a package of excursions around the city along with the room reservation.
Upselling, on the other hand, consists of selling products or services of greater value than those originally requested by the customer.
In a hotel, it could be the sale of a room of a higher category than the one originally booked.
Both techniques can help a hotel generate additional revenue and increase customer satisfaction by offering them extra options and services that can enhance their stay experience.
In addition, upselling can also help offset costs associated with cancellations or empty rooms.
Fifth strategy: do revenue management
Revenue management is all about maximizing a hotel's revenue by optimizing rates and managing room availability.
This helps the hotel make the most of demand and increase revenue, as it allows to adjust prices according to demand, ensuring higher rates during periods of high demand and lower rates during periods of low demand.
Revenue management can also bring the following benefits:
- increased profitability: by adjusting prices according to demand, the hotel can increase profits
- optimal use of rooms: revenue management helps ensure that rooms are used to their maximum capacity
- demand forecasting: revenue management helps predict future demand, which allows the hotel to better plan and prepare for peak demand
- improved customer experience: with a better understanding of customer wants and needs, the hotel can provide a better guest experience and increase customer loyalty.
Sixth strategy: establish partnerships
Collaborations and partnerships for a hotel can take many forms, but in general they consist of agreements between the hotel and other companies or organizations to promote each other or to offer complementary services or products to customers.
For example, a hotel might partner with a car rental company to offer discounted rates on car rental services, or with an excursion company to offer customized excursion packages.
Another form of partnership for a hotel might be an affiliation agreement with another hotel chain to promote each other and increase the visibility and reach of their services.
The benefits of these collaborations and partnerships can include increased revenue through the sale of complementary services, increased visibility and reputation of the hotel, increased customer satisfaction through the provision of additional services, and increased opportunities for networking and development of new business opportunities.
Seventh strategy: data analysis
Data analysis for a hotel consists of collecting, organizing, and analyzing data related to hotel activities in order to better understand market trends, customer behaviors, and hotel performance.
This data can come from a variety of sources, including reservations, rates, occupancy, customer feedback, demographic data, and financial transactions.
Once the data is collected, the hotel can derive useful information and make informed decisions.
Using a combination of these techniques and strategies can help increase revenue at a hotel and improve the property's competitiveness in the marketplace.
If you are looking for a technology to help you increase your hotel's revenue, try Smartpricing!
Smartpricing is revenue management software that finds the right price at the right time and helps you increase revenue.