Be creative and maximise your hotel’s revenue, discounting is not the answer!
Generating ancillary revenue is a further innovative way of optimising your hotel's profits--maximise revenue from your existing bookings rather than culling your prices in an attempt to gain more reservations. Offering local tours and activities have proven to boost revenue, this also serves to add value to your website in terms of content. Remember, guests generally choose destination before hotel. Therefore adding web page content that relates to the destination (and your relationships with it through tours and activities) will only have a positive influence on a potential guest's choice. The new pages will also be indexed by the search engines and should enhance your overall online visibility for new search terms.
Using opaque channels is a simple way to get rid of distressed inventory and best of all you can maintain rate integrity. An opaque channel makes parts of the online sales process hidden, for example the hotel name. By using opaque channels you can offer prices that are significantly lower than published rates. Hotels can price discriminate between those customers who are sensitive to service characteristics and those who are not and profit from such discrimination. Taking a look at your customer segments can also be beneficial in establishing how to tackle discounts and special offers. Customers vary in terms of price sensitivity; there are still potential guests who do not expect discounts! Make sure you consider this fragment of potential guests.
Hoteliers must adapt revenue management and pricing strategies to take advantage of new trends in customer behaviour and distribution. For that reason, appropriate representation on GDS channels and IDS channels will increase electronic sales for suitable hotels. The number of reservations being generated through these channels is growing steadily. GDS and IDS account for 60% of online bookings so for suitable hotels, there couldn't be a better time to invest. Hoteliers must remember the majority of potential guests are not brand loyal nor do they have a fixed booking pattern; they simply book from the hotel offering them the best deal. The unpredictability of such behavior means that hotels must maintain a presence on all possible distribution channels if they want a sizeable share of the online market.
Creative ideas, promotions and marketing are effective alternatives to discounting your prices. Maximising revenue from existing bookings and adding value to your guest's experiences will ensure more repeat business and optimised profits.
About GlobRes | GlobRes provides the best hotel central reservation systems and hotel Internet marketing services for hotels around the world. Connecting hotels with their guests through increased exposure via all channels including GDS, IDS, Digital Marketing and the hotel's own website. GlobRes operates a fully serviced support centre, offering assistance to hotels in English, Italian, German, Spanish and French. GlobRes is also offering hotel website design for free when purchased with hotel reservation systems.
Complete our online contact form for more information.