How To Increase Hotel Revenue?

The hospitality industry has undergone a period of immense growth over the past ten years, reaching over $500 billion in revenues (according to Statista.com).

True, the hotel business is hard to ignore. However, it is also challenging and stressful as various factors might affect this sector, namely seasonality and competition, additional complexities like local events, concerts, and travel disruption that affect RevPar. Hoteliers should take a lot into considerations to continuously find ways to exceed guests' expectations and bring guests back.

So what makes a hotel profitable? Here is a list of top revenue-generating ideas you can use right now to help you improve your hotel's occupancy rate and drive bookings all year round.

1. Know your audience

Hoteliers should cater to different travelers' personalities, profiles, needs, and expectations. For example, the importance of shared spaces and social experiences to Millennial and Gen Z has given rise to a new urban boutique hotel while busy business travelers and digital natives seek the integration of time-saving technology (according to Sommet Education report). While talking about the latter, they appreciate innovations as they bring extra value by providing greater customization, convenience, and control.

Because It is essential to understand who your guests are and why they are choosing to book a room in your hotel, you should create hotel guest personas and tailor messages to them. That said, the Hotel Concierge App can become a revenue accelerator in your guest's pocket. It allows guests to book hotel rooms, services, deals, and hoteliers to manage the orders in real-time, understand clients' preferences, and bring their travel experience to a new digital level. You can learn more by the link: https://hotelfriend.com.

2. Focus on the guest experience

Research by PWC showed that 86% of guests are ready to pay more for great customer experience with up to 18% for luxury and indulgence services. But how to create a good customer experience? First, hoteliers need to get to know their guests and use this knowledge to deliver personalized experiences across the entire journey. And if this goal is achieved, they will come back.

Secondly, you can collect and analyze feedback, as well as make it easy for guests to leave a review. TripAdvisor reported that 53% of the travelers would not book a hotel that didn't have online reviews. Happy guests leave more positive reviews, so encourage them to write about their experience with your hotel. Hoteliers can use a series of tools to automate the process of asking for feedback. For example, using the above-mentioned Digital Concierge App can help gain more reviews.

3. Invest in hotel software

Artificial intelligence, virtual reality, facial recognition, Internet of Things, blockchain… New technology and innovations are enhancing customer service and creating new opportunities to engage with guests. They transform the hospitality industry in ways we have yet to imagine. It is clear that hoteliers should keep in mind this new tech trend as it helps increase the property's value and returns, grow revenue per available room (RevPAR), reduce operational expenses, and produce higher occupancy percentages.

You might wonder how you could make technology work for your business. In fact, the list of the most important platforms and tools includes a Property Management System, Channel Manager, Booking Engine, Digital Marketing, and Hotel Concierge app. All you need is to choose a reliable software provider.

4. Develop unique selling points for your property and be ready to adjust

In the hospitality industry, cancelations happen suddenly. Whether they are caused by changes around the globe like unsettled elections and natural disasters or due to tough competition, hoteliers should shore business up.

To achieve this, find out what makes your hotel special to your guests, what they like the most, and what differentiates you from others. Then you need to communicate that on the hotel website, social media, and marketing campaigns.

Also, hoteliers have to think long and make adjustments. Seasonality, demand, submarket supply, customer segmentation, events, local laws, and other external factors are critical when pricing rooms to ensure you can increase RevPAR. So hotel managers should develop strategies and distribution plans to push hotel bookings ahead of the market during any fluctuations.

5. Reward your guests for booking direct

According to Statista.com, 76% of the total revenue in the hotel industry will be generated through online sales by 2023. Leads may come from third-parties and booking direct. Because hotels should pay up to 22% commission to OTAs, hoteliers prioritize a direct booking strategy year after year. Here are some tips on how to win a direct booking:

• Ensure your website is easy to use and mobile-friendly. A well-designed website where people can find everything a hotel offers quickly and book easily is must-have. Also, it should be optimized for mobile devices as more than 52% of global internet traffic comes from smartphones and tablets (according to Statista.com).
• Offer a discount to people who book directly and give a little extra to your loyal customers. Hoteliers may also surprise guests with a gift on arrival and leave a thank you card. Don't forget to welcome them back with a follow-up email a few days later. This is also a great way to remind your guests to write a review or give feedback, as well as offer discounts and deals.
• Install a Booking Engine on your hotel's homepage. It helps simplify the booking process and make it more comfortable for guests. As of now, there's more to this button than just simple reservations. With it, guests can select dates, the room rate, room type, order meals, services, deals, and more.

Today, the hotel industry keeps growing at a rapid pace in the years to come. We invite you to follow the tips above and implement new technology, which can open up a world of new opportunities, build lasting customer relationships, reach new heights, boost your sales and revenues.

About HotelFriend

HotelFriend is a global provider of business software with offices across Europe. The company specializes in R&D in the travel and hospitality sectors, cloud computing, e-commerce, CRM, ERP, and the development of mobile and desktop apps.

Mitch Bondarchuk
Business Development Manager
+4930 311 98385
HotelFriend AG