5 Tips to Increase Revenue in a Down Market Without Dropping Rates
Increase Revenue in Down Market Without Dropping Rates
Don't let a down market keep you from increasing revenue! We're sharing tips for increasing revenue in a down market without dropping rates! Click here!
Airbnb may be a great way for property owners to make some extra income, but we know it has many hotels and other hospitality specialists worried. Especially if you're an independent hotel already competing with chains, we know it feels tough.
But don't lose hope just yet.
Whether it's to make housing more affordable for those that live there, or to help out hotels and hospitality industries, we're seeing more and more restrictions being placed on Airbnb.
Also, according to recent studies, Airbnb and hotel chains are coexisting pretty well. So perhaps all the industry talk about Airbnb replacing hotels is just that - talk.
Here, we're sharing the top 5 ways you can increase revenue, even in a down market!
1. Price By Length Of Stay
This tip to increase revenue adjusts prices according to how long a guest is going to stay at your hotel.
It also takes the date of arrival (is it a popular time of year?) into account when pricing.
Guests love this option because it gives them a total price for their stay, without fluctuating prices night-to-night. Offering them a package is a great way to let them know they're getting a great deal.
2. Offer Continuous Pricing
This is a great strategy for hotels that are able to be flexible, as it calculates rates based on a hotel's maximum and minimum range.
Basically, it keeps within your marketing rules, while also allowing you to target your optimal price. It steers clear of rate values that are created and defined by users.
3. Get On Social Media
Think your hotel can exist and book guests without a Facebook and Instagram account?
Hotels now more than ever rely on social media to show guests just how great their stay will be, incorporate guest feedback to make future stays better and to connect with different markets across regions and age ranges.
4. Hone Your Sales Tactics
If you're looking to increase revenue your sales team is the best place to start before you slash your rates.
There are always incentives to sell, but you need to scrutinize how your salespeople are evaluating group rooms vs. transient business.
Try and mix and match group rates with individual travel, so that you're not over-reliant on block rooms to keep you out of the red. Check out your calendar ahead of time to work on closing any potential gaps earlier.
5. Price By The Day
This method to increase revenue charges a different rate for the individual nights of a stay. Basically, each night's price is independent of the others and is affected by factors like popularity, price sensitivity, and more.
As a bonus? It's one of our easiest tips to put into place!
You Don't Have To Lower Your Rates To Increase Revenue!
When you want to increase revenue for your hotel business, it doesn't mean you have to lower your rates.
Thanks to these 5 tips and tricks, you're ready to see your profits soar again.
For more advice from industry insiders, and to learn even more about hospitality revenue management, check out our blog and feel free to contact us.