Beyond Room Revenue - Revenue Management opportunities for 2021 and beyond
— 23 experts shared their view
COVID has hit the global hotel industry hard. But as with every crisis, new opportunities surface. During the financial crisis of 2008/09, we saw Airbnb and Uber emerge.
Many revenue-generating ideas were born over the past year. From staycation and workation to renting out equipment and even offering outsourced services like housekeeping. Hoteliers have been creative in finding ways to keeping their business afloat.
What was born out of a need for survival might lead to a more permanent shift in a hotel's business model.
The idea of non-room revenue is nothing new and even pre-pandemic was something more and more hotels embraced. F&B or MICE revenue management is still in its infancy for the overall industry but terms like Total RevPAR have evolved from buzzword to serious KPI.
Is now the time to look at non-room, ancillary revenue? Where are the opportunities?
Director at Moore Hotel Consulting
Co-working spaces: With the focus on domestic travel for the foreseeable future, hoteliers need to look closer to home for additional revenue opportunities.
With the availability of great wifi, hotels can target the bleisure/workation market that will enable customers to extend their leisure stays beyond the weekend and spend longer periods working from the hotel. This goes hand in hand with converting unused convention or lobby space to a modular co-working space that should be available to hotel guests & also should be marketed to the local community. With so many people working from home and home-schooling, some people need an occasional retreat to a more professional environment.
In countries where home schooling is still the case, there is also an opportunity to attract families outside the school holiday season, as schooling can be done from the hotel followed by leisure activities afterwards.
Private events & Private dining: Revisiting all spaces in & outside of the hotel should open up a treasure trove of additional spaces that can be re-purposed and rented out for example for private dining in a Covid-proof environment, be it in a suite or at a newly created firepit.
Working with local communities will also allow you to rent out unused events spaces for Art or Yoga classes and similar.
F&B: On the F&B side, some properties have rented out their kitchens as dark kitchens during lockdowns to young delivery start-ups. The food delivery trend offers opportunities to sell not only take-away foods but also meal-kits for the restaurants signature dishes that can be sent to customers for them to cook at home.
Anti-food waste apps like 'Too good to go' are another opportunity for additional F&B revenues, as these can be used not only to shift left-over foods but with the right pricing also additional meals.
Excellent customer service: For hoteliers, there are also consulting opportunities with other companies that seek to improve their customer service and who better to learn from than the hospitality experts.