In a rapidly changing hotel market, it is essential for hotels to seek strategies to maximize revenue. In this case, well-defined and targeted strategies can play a key role in achieving these goals. From pricing to the implementation of new technologies, you should take note of how to boost your hotel’s profitability.
That is why, in this article we will talk about 4 effective strategies for your hotel establishment to be successful in such a competitive market. If this caught your attention, continue reading.
1. ADJUST YOUR PRICES
To boost the competitiveness and profitability of your hotel, one of the key factors is price. In this sense, in the hotel industry, the more different the price is from the competition, the better. This difference should also be reflected in relation to the OTA that sells our product. According to Hosteltur in January of this year, data from Google Hotel Ads show that 56% of queries had OTAs offering a better price than the hotel’s website.
When this disparity is reduced and prices on the official website are improved, hoteliers improve direct conversion. In other words, they obtain more visits, more traffic, more reservations and therefore more profitability.
In addition, you can adjust the availability and conditions of your product. In this case, you can decide which rooms you share with the distribution channels and which ones you leave for direct booking.
2. MANAGE YOUR REVENUE
Revenue management is essential to boost your hotel’s profitability. For this, it’s necessary to be aware of market dynamics and trends. However, a well-done market study takes a long time and requires capable professionals. Therefore, one option may be to hire a hotel consultancy or have a good revenue management system.
In this sense, to manage your revenues well you must apply strategies and tactics. These tactics can be, for example, accommodation packages with complementary activities, special rates for clients, motivating staff to provide good service, knowing about competitors’ pricing policies, improving prices for tight budgets, among others.
3. ADAPT TO CUSTOMER PREFERENCES
Adapting to customer preferences is another important factor in making your accommodation more competitive and profitable. However, this point can go unnoticed. Customers no longer book and travel in the same way as they did 5 years ago. Therefore, our way of getting bookings cannot be the same as it was years ago. Changes must be made to meet today’s needs.
For example, it’s estimated that today’s customer has a short attention span. They are also more used to making quick purchasing decisions. In addition to short attention spans, today’s customers are looking for personalized content that fits their needs.
So if you are a hotelier you must be ready to be agile as customer preferences change.
4. INVEST IN NEW TECHNOLOGIES
At this point, hotels are already or have already implemented new technologies to optimize tasks and generate profitability. However, according to some surveys, a good percentage of hoteliers say they will continue to invest in technology in the coming years. This means that if you want your business to be competitive you have to continue investing in technology.
In addition, quality technology can help you generate more leads and more revenue. For example, it’s estimated that many customers would be willing to pay more if they can choose their room and floor. That’s why hotels should offer options where customers can customize their stay. And that they can do so from the moment they book to the check-in. However, the right technological infrastructure must be in place for this to happen.
To summarize, price adjustment, revenue management, adapting to customer preferences and investing in new technologies are strategies that can help you increase your hotel’s revenue.
However, in order to apply them successfully, you will need the help of specialists in the hotel market. And that’s where the role of a hotel consultancy can be fundamental. A hotel consultancy knows how to improve and set realistic prices. It also knows how to optimize revenue management and what the needs and preferences of current customers are. And it can assess what your business’s technology needs are.
At IHCS we have experienced professionals who can help boost the competitiveness and profitability of your hotel. So do not hesitate to contact us.