The task of monitoring and increasing the average price must be carefully carried out by a manager or hotel director. To achieve this goal efficiently, the entire hotel team must, of course, be involved.
Nowadays, there are various tools and strategies available to significantly increase our profit per room. These techniques go far beyond simply raising the average price, and this article aims to introduce a few of these methods.
First point: the hotel website (for this point I recommend our articles: How to build an efficient hotel website? and Booking methods for the website. )
There’s no doubt that our website is the most profitable channel for our lodging. We deliberately use the term “profitable” because selling through our own channel saves us the commission fees we’d otherwise have to pay to other booking platforms.
That’s why it’s very important to invest a lot of time and whatever resources we can in our own sales channel.
An increase in sales through our website will result in:
- a positive impact on our profit and loss statement
- an increased cash flow and a minimization of a potential loan , which minimizes our risks.
- Increase in profitability per room unit or operating profit per available room.
- An improvement in the sale of extra services in the hotel, which helps us increase the total profit per available room.
- A tool to help build a good database/customer base , which is available to those responsible for customer relationship management.
- Help for a Faster Check-In Process
Table of Contents
SoSocial Networks and Internet Communication
These days, it’s almost essential to have a Internet PRäPresence on social media to have a management strategy in place for them. Facebook and Twitter are important, though we shouldn’t forget other channels such as TripAdvisor, Foursquare, YouTube, local websites, and blogs. Online communication takes place everywhere, so we should make sure someone is monitoring the various customer contact channels. Even in smaller hotels, the manager in charge often has little or no time to thoroughly monitor these channels and media. But in the coming years, this will become one of the core responsibilities of every community manager. Anyone who fails to take advantage of social media will feel the competitive disadvantage compared to their rivals.
Online Reputation
We need to pay particular attention to our online reputation, as social media influences our customers’ purchasing behavior and plays a key role in 51% of reservations.
Some factors that play a role, according to TripAdvisor’s TripBarometer :
– 93% of all travelers worldwide say that online reviews influence their decision to make a reservation.
- 51% of all travelers worldwide post their own reviews of their accommodations after their trip ends.
Better Relationships, More Benefits
Today, one of the key roles in the world of revenue management is customer relationships. We shouldn’t try to do everything on our own, but rather invest time in building strong ties with our sales partners, such as travel agencies, tour operators, consortia, and other collaborators. Relationships are everything, so we shouldn’t hesitate to devote as much time as necessary to developing this crucial aspect of every marketing plan.
Erhöthe hotel’s average price
Set Goals and the Budget in Advance
Now is the right time to address revenue management and set budget goals for the coming year. It’s important to allow enough time for budget planning, to account for any potential issues, and to plan for difficulties.
To set the targets and target budget appropriately, it is best to use the last two fiscal years as a reference.
Make sure to take all the points mentioned in this article into account and incorporate them into your budgets, including SEO, PPC, and social media strategies.
Building a Revenue Management Culture
Revenue management offers many benefits to the sectors where it is implemented. Many of these benefits are financial in nature, but not all of them.
To ensure the successful implementation of a revenue management culture in a hotel or resort, it is essential to involve, train, motivate, and encourage the staff.
This approach will not only help increase the average rate but also boost team engagement.
This way, we will not only increase revenue per room, but also total profit per available room. In our next article, we will take a closer look at revenue management.
A Good Business Plan
This is the exact difference between marketing a hotel and implementing revenue management.
In summary, we note that the sales department is responsible for addressing demand, while revenue management is responsible for managing it.
Very important: the service quality
If we are able to maintain high quality standards and foster a positive work environment, this will have a positive impact on the business and, consequently, on the average price. We don’t need to elaborate further on the importance of our online and offline reputation, as we have already discussed this.
We should not forget that, especially in hotels and vacation resorts, we are selling experiences. A hotel that does not prioritize service quality, fails to foster a positive work environment, does not implement specific standards, and neglects staff training will hardly be able to meet customer expectations.
In this article, we have clearly explained the basic tools for increasing the average price while strengthening our market position. In this way, we will improve our short-term goals while developing a business plan with strong prospects for both short- and long-term objectives.
In our next article, we will discuss the importance of a strong revenue management culture in a hotel or individual resort. In doing so, we will explain the benefits as well as the key considerations associated with this culture.
We hope you enjoyed this article and that it will help you tackle the challenging task of raising the average rate at a hotel or resort. If you found this blog post useful or enjoyed reading it, please share it and let others know about it!
