Strategies to
increase hotel
revenue
How hotel e-commerce, new technology, streamlined operations, cost-saving measures, and digital marketing can boost your hotel’s revenue fast
Unlocking hotel revenue
Maximizing hotel revenue in the ever-changing hospitality industry requires implementing innovative strategies and taking advantage of technological advancements.
This comprehensive article dives into five key areas: hotel retailing, new technology, streamlined operations, cost-saving measures, and digital marketing. By exploring these topics, you’ll discover actionable insights and practical ways to enhance guest experiences, drive additional income, and stay ahead of your competition. Let’s unlock the full revenue potential of your hotel!
1. Introduce hotel retailing
In today’s competitive landscape, hotels must extend past traditional room sales to take advantage of revenue maximization. Hotel retailing is the key to increasing revenue fast. By leveraging retail strategies, hoteliers can switch their focus from filling rooms to driving total revenue by offering an endless array of additional revenue and service opportunities aside from the room itself.
Components of hotel retailing:
Ancillary services:
Offer additional services like spa treatments, dining experiences, or local tours. Promote these through your hotel’s social media, website, in-room marketing materials, and traditional marketing channels.
Personalized packages:
Create tailored packages for different guest segments. A couple may enjoy a romantic in-room dinner, while a family might prefer tickets and transportation to a nearby theme park. This approach ensures you have offers appealing to every guest demographic.
Pre-arrival emails:
Send offer emails before your guests’ trip begins to inspire them to enhance and build their perfect stay. This tactic creates revenue streams even after your guests’ initial purchase.
Room-centric offers:
Implement promotions centered around the hotel room, such as late check-out, breakfast included, or upgrades to rooms with balconies.
Beyond the room:
Capitalize on the appeal of your hotel’s amenities by offering items for sale. Whether it’s a personalized version of your hotel robes or a branded polo, these extras can enhance a guest’s stay and brand loyalty.
Top performing ancillaries
Beyond standard offers, customers boost ancillary revenue with unique SKUs that strengthen the hotel’s brand and create added value for the guest
Implement Gift Cards & Vouchers
Gift Cards & Vouchers are powerful tools for driving revenue and attracting new guests. They offer a flexible way for customers to experience your services, often resulting in higher spending when redeemed. Additionally, they create opportunities for guests to buy gift cards for friends and family, introducing your offerings to a broader audience.
Strategies to increase Gift Card & Voucher sales
Seasonal promotions
Market Gift Cards & Vouchers during peak seasons around specific holidays. These times present great opportunities to attract gift buyers looking for unique and thoughtful presents.
Online sales channels
Ensure your Gift Cards & Vouchers are easily accessible online. Promote them through your website, email campaigns, and social media to reach a wider audience. This convenience can significantly increase sales, especially from last-minute shoppers.
Off-property items
Consider offering experiences beyond your hotel, such as local tours, adventure activities, or dining at partner restaurants. This expands the appeal of your vouchers to guests looking to explore the local area.
Special occasions:
Take advantage of occasions like birthdays and anniversaries by offering personalized packages, including special touches like birthday cakes, champagne, or custom experiences. These can be marketing year-round!
2. Leverage new technology
Adopting new technology is a pivotal strategy for hotels aiming to save costs and enhance operational efficiency. Cutting-edge tools and systems streamline processes and provide valuable insights that can lead to substantial savings. Additionally, we’ll highlight how implementing an advanced operations management program like Nuvola can revolutionize your hotel’s efficiency and cost-effectiveness. Let’s explore how integrating these technologies can help your hotel save money, enhance guest experiences, and maintain a competitive edge in the hospitality industry.
Property management systems (PMS)
PMS can significantly enhance front desk operations. Systems like SynXis Property Hub streamline guest check-ins and check-outs, manage room assignments efficiently, and reduce manual errors. This leads to faster service, happier guests, and fewer operational hiccups, saving time and labor costs.
Energy management systems
EMS can optimize energy consumption by monitoring and controlling usage in real time. By automating the regulation of HVAC systems, hotels can ensure they are not wasting energy in unoccupied rooms or common areas. This proactive approach can lead to substantial savings on utility bills and reduce the hotel’s overall carbon footprint.
Hotel guest chat tools
Implementing hotel guest chat tools can drastically reduce the need for extensive front desk staffing. Guests can check in and out using their smartphones, which not only enhances convenience for them but frees up your staff to focus on other tasks. These tools can also improve guest satisfaction by providing instant assistance and personalized service through chat functionalities.
Smart thermostats and LED lighting
Investing in smart thermostats and LED lighting is a straightforward yet effective way to minimize energy costs. Smart thermostats can learn guest preferences and adjust temperatures accordingly, ensuring comfort while reducing energy and money waste. LED lighting, which consumes less power and has a longer lifespan, further contributes to energy savings and maintenance costs.
Automated maintenance systems
Automated maintenance systems are essential for preventing costly equipment breakdowns. By scheduling timely upkeep and monitoring equipment health, these systems can predict potential failures and ensure that maintenance is carried out proactively. This extends the lifespan of hotel assets and avoids the high costs associated with emergency repairs like leaks and breakages.
Buy now, pay later (BNPL) features
Incorporating BNPL features enhances guest booking flexibility and increases conversion rates. By offering guests the option to spread out their payments over time, hotels can attract a broader range of customers, including those who may be deterred from the upfront cost. Additionally, BNPL options can encourage guests to book higher-tier rooms or additional services, further boosting hotel income.
3. Streamline hotel operations
Incorporating an advanced operations management program can take these benefits to the next level. Nuvola’s task management features optimize daily operations by efficiently assigning and tracking tasks, ensuring staff are utilized effectively. This systematic approach minimizes idle time and maximizes productivity, allowing hotels to function seamlessly even during peak periods.
Leveraging new technology is not just about staying current; it’s about creating a smarter, more sustainable operation that benefits both the hotel and its guests.
Enhanced
communication tools
Effective communication is crucial for smooth hotel operations. Enhanced communication tools within Nuvola reduce miscommunication and delays, which can waste minutes, if not hours, of imperative time for staff members. Real-time updates and notifications ensure that all departments are aligned, facilitating quicker response to guest requests and operational needs. This interconnected approach minimizes errors and enhances overall efficiency.
Real-time
inventory tracking
Efficient supply management is vital for controlling costs and reducing waste. A real-time inventory tracking feature allows hotels to monitor their supplies continuously, ensuring they always have the right amount of stock. This reduces the risk of over-ordering or running out of essential items, disrupting operations, and causing unnecessary expenses. Maintaining optimal inventory levels can reduce storage costs and prevent waste, contributing to more sustainable operations.
Detailed analytics
and reporting
In this data-driven era, having access to detailed analytics and reporting is a game-changer for hotels. Nuvola provides comprehensive insights into various aspects of hotel operations, from guest service metrics to maintenance schedules. These analytics empower hotels to make informed, data-driven decisions, identify trends, and pinpoint areas for improvement. By leveraging this data, hotels can optimize processes, enhance satisfaction, and increase profitability.
4. Implement cost-saving measures
Maximizing revenue goes with minimizing unnecessary costs. Finding innovative ways to save money while maintaining high service standards is crucial for hoteliers. This section explores various strategies that can help hotels cut down on random costs, ultimately boosting the bottom line. By integrating these practices, hoteliers can ensure a streamlined operation that not only saves money but enhances the guest experience.
Outsourcing non-core functions:
Outsourcing allows hotels to concentrate on core operations while leveraging the expertise of specialized service providers. Sabre offers tailored solutions that enhance operational efficiency and guest satisfaction. Hotels benefit from improved efficiency, cost reductions, and the ability to focus on guest experiences by outsourcing services like housekeeping, laundry, security, and human resources. Here are some examples of services you can outsource to optimize hotel performance:
Water conservation techniques
Water conservation is essential for reducing utility costs. Installing low-flow faucets, showerheads, and toilets can significantly cut water usage. Implementing a greywater recycling system, which reuses water from sinks and showers for irrigation, can also reduce water bills. In addition, encouraging guests to reuse towels and linens can lower laundry costs and save water. This is another attribute that frames your hotel as an eco-friendly venue!
On average, each hotel room uses between 100 and 400 gallons of water per day
Source: seattle.gov
Optimizing labor costs
Labor is often one of the most significant expenses for hotels. Optimizing labor costs without compromising service quality is critical to maintaining profitability. Cross-training employees to handle multiple roles can reduce the need for a large staff, allowing the hotel to operate efficiently with fewer employees. Flexible scheduling based on occupancy levels can also ensure labor costs align with revenue. Taking advantage of employee training or onboarding software can also contribute to savings on labor costs.
5. Elevate digital marketing
In today’s market, a strong online presence is crucial for maximizing hotel revenue. Digital marketing encompasses a variety of strategies that can enhance visibility, attract more guests, and ultimately increase bookings. This section dives into how leveraging digital marketing significantly boosts hotel revenue, from SEO to PPC to how to target potential guests on social media.
Search engine optimization
Optimizing your hotel’s website for search engines is essential for attracting organic traffic and ensuring your hotel appears under a user’s search. You can improve your search engine rankings by using relevant keywords, creating high-quality content, and ensuring a user-friendly website design. Higher visibility on search engines like Google leads to increased website tracking and direct bookings, reducing reliance on third-party booking platforms like OTAs.
Influencer partnerships
Partnering with influencers is an up-and-coming way to drive engagement on social media. It can amplify a hotel’s reach and attract new audiences. Influencers with a substantial following in travel and lifestyle niches can create authentic content that showcases the hotel’s unique offerings! These partnerships can drive traffic to your hotel’s social media platforms and website, building brand awareness. Including an exclusive discount code or special offer with the influencer’s audience can add an extra incentive to drive user action.
Pay-per-click (PPC) advertising
PPC advertising allows hotels to target potential guests with precision. Platforms like Google Ads enable hotels to create ads that appear at the top of search results for specific keywords. This targeted approach can drive high-quality traffic to your hotel’s website, increasing bookings. PPC campaigns can be tailored to specific promotions, events, or seasons, maximizing ROI.
Social media marketing
Every day, more travelers turn to social platforms for travel inspiration and recommendations. Social media offers powerful tools for hotels to engage with future guests or maintain relationships with current ones. By creating compelling content, sharing guest experiences, and promoting special offers, hotels can build a loyal online following. Social media advertising enables targeted campaigns based on demographics, interest, and behaviors, ensuring that marketing efforts reach the right audience. Not to mention, if one of your videos goes viral, your hotel could be the next hot destination!
Email marketing
Email marketing is an effective way to nurture relationships with past, current, and potential guests. Personalized email campaigns can promote special offers, loyalty programs, and upcoming events. Automated emails, such as booking confirmations, offer an excuse to “plug” additional revenue streams like hotel retailing. By segmenting email lists, hotels can tailor their messages to different audience segments, increasing engagement and conversion rates.
Take action: Boost your revenue now
Maximizing hotel revenue requires leveraging the latest technology, streamlining operations, and adopting innovative marketing strategies. The growth opportunities are endless, from hotel retailing and cost-saving measures to digital marketing and outsourced services. Sabre Hospitality is here to help your hotel implement these solutions and drive profitability while enhancing the guest experience.
Ready to take your hotel’s revenue to the next level? Get started today to discover how our cutting-edge technology and expert support can transform your hotel.
Next steps for hoteliers
- Offer ancillary services or capitalize on existing ones
- Create personalized packages to appeal to different guest segments
- Encourage guests to enhance their stay with special pre-trip offers through email
- Adopt a property management system
- Use guest chat tools to reduce staffing needs
- Engage in social media marketing by creating content and running targeted campaigns
- Collaborate with influencers to reach new audiences and promote your hotel
Related articles:
The ultimate guide to social media marketing for hotels
Ways to unlock total revenue using gift cards
How to generate more revenue in a hotel
Hospitality and hotel marketing insights and trends
Top 10 best practices for effective hotel operations management
Innovative hotel marketing: leveraging vouchers to attract new guests