As a savvy hotelier running a boutique gem or a charming independent property, you hold the key to creating extraordinary guest experiences. Don’t let the size of your hotel room inventory deceive you; it can be an advantage that allows you to curate a personalised and enchanting stay for each guest. You can make the most of your hotel’s potential and boost profitability with fewer rooms by implementing the strategies we’ve put together!
Explore seven clever ways to unlock the true revenue potential of your small hotel. Let’s dive into practical strategies tailor-made to boost profitability while ensuring remarkable guest satisfaction.
1. Embrace the Power of Data
In today’s digital age, data is a valuable asset that can empower your decision-making. Leverage your hotel CRM system to gather insights into guest preferences, booking patterns, and seasonal trends. Analyse this data to identify high-demand periods and offer targeted promotions to attract guests during slower times. Tailored marketing campaigns will allow you to maximise bookings and revenue.
2. Optimising Pricing
With a limited number of rooms, employing dynamic pricing is a game-changer. Adjust your rates based on various factors like demand, seasonality, and special events. Implementing a flexible pricing strategy will help optimise revenue by charging higher rates during peak times and offering attractive deals during off-peak periods.
To maximise your effort, making sure of the alignment between revenue management and marketing in your hotel is crucial.
Revenue management and marketing teams have access to different data sets, such as pricing and demand data. When they work together, they can use this data to make informed decisions about pricing, promotions, and distribution channels. By sharing first-party data, you can gain insights into your guests’ preferences and behaviour, allowing you to optimise pricing, customise offers, and target the right audience.
For example, if the marketing team notices that a particular promotion is driving a lot of bookings, they can share that information with the revenue management team, who can then adjust pricing and inventory accordingly. Read more about revenue management and marketing alignment here.
3. Foster Direct Bookings
While online travel agencies (OTAs) play an important role in increasing visibility, they also take a significant chunk of your revenue as commission fees. OTA fees come at a high cost of up to 30% commissions on each booking (HotelTechReport). Encourage direct bookings by offering exclusive perks, such as loyalty discounts, complimentary upgrades, or early check-in options. Utilise your CRM system to personalise offers and incentives for repeat guests, strengthening their bond with your brand.
Shortly after their stay, you can use For-Sight to specifically target your OTA guests with email marketing to encourage direct bookings for their future stays.
4. Create Attractive Packages
Entice potential guests by offering unique packages that cater to different segments. Bundle rooms with value-added services like breakfast, spa treatments, or local experiences. By providing added benefits, guests are more likely to choose your hotel over competitors, thus increasing your revenue per booking.
If you’re not sure how to start with segmentation, ask our advisors for you a tour of For-Sight CRM. The For-Sight platform gathers all your guest data from different touchpoints (PMS, spa, dining…) and allows you to segment your guests and create targeted communications.
5. Upselling and Cross-Selling
Make the most of every booking by implementing upselling and cross-selling strategies. Suggest room upgrades, additional services, or special amenities that align with guests’ preferences during the booking process, before their arrival or on their stay. These tailored offers can significantly boost your revenue without the need for additional rooms.
Personalised email approaches are increasingly important, as consumer preferences evolve. Research from The Direct Marketing Association shows that segmented and targeted emails contribute to 58% of revenue. By implementing improved segmentation and targeting with For-Sight, you can increase conversion rates, open rates, and customer loyalty. Tailored pre-stay communications based on guest preferences can boost revenue through upselling and cross-selling without needing additional rooms.
For example, you can create a pre-stay email encouraging guests to book a treatment at your spa that would automatically only be sent to guests that have not yet booked a spa treatment. You can also choose when guests receive that email, for instance, ‘3 days before arrival’.
6. Focus on Guest Experience and Guest Recognition
Limited room availability doesn’t mean compromising the guest experience. In fact, providing exceptional service will lead to positive reviews and increased word-of-mouth recommendations, ultimately driving more bookings. Train your staff to offer personalised attention, anticipate guests’ needs, and promptly address any concerns.
A loyal customer base is a powerful asset. Reward repeat guests with exclusive benefits and recognition to give them a real sense of their value to you. Greeting them personally and being able to recall previous stays will make your guests feel truly special. You can reward your guests’ loyalty by offering them a free or discounted pass to their favourite activity and reaching out before their arrival to arrange activities you know they always book it. Technology is here to help your staff identify loyal guests and their previous bookings. For-Sight’s Single Guest Profile report is designed to help you recognise your guests by easily knowing guests booking patterns, past reviews for each visit, spending habits and more!
7. Collaborate with Local Businesses
Build partnerships with local businesses to create enticing packages that showcase the best of your destination. Collaborations with nearby attractions, restaurants, or event organisers can add value to your guests’ experience and entice them to choose your hotel over others.
Even with limited room availability, there are numerous opportunities to maximise your hotel revenue. By utilising data, implementing dynamic pricing, creating attractive packages, encouraging direct bookings, and focusing on guest experience, you can thrive in the competitive hospitality industry. Combine these strategies with marketing automation and guest recognition to build lasting relationships with guests, leading to sustainable growth and success for your hotel. Happy revenue optimising!
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