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How to increase the ADR of your tourist establishment

How to increase the ADR of your tourist establishment

Increasing the average price of your tourist establishment is essential to improve profitability and maintain the quality of service. This is even more evident in an industry as competitive as the hotel industry. Therefore, every owner of hotels, resorts or tourist apartments must focus efforts on raising this metric. To achieve this goal, distribution strategies […]

Increasing the average price of your tourist establishment is essential to improve profitability and maintain the quality of service. This is even more evident in an industry as competitive as the hotel industry. Therefore, every owner of hotels, resorts or tourist apartments must focus efforts on raising this metric.

To achieve this goal, distribution strategies play a crucial role. In particular, focusing on the direct channel, such as the hotel website, email and social media, can make a difference.

In this article, we will explain how to make the most of the direct channel to increase the average price of your hotel. In addition, we will highlight the importance of consolidating direct channels.

WHAT IS THE AVERAGE DAILY RATE OF A HOTEL?

The average daily rate is also defined as the average average rate or ADR. This is a performance indicator that measures the average income obtained per occupied room. It is one of the most important metrics to study the profitability of a tourist apartment, hotel or resort.

ADR helps you see how much money customers are willing to pay to stay at a hotel. Which in turn can show what the quality of the service offered by said establishment is like. In addition, it is an indicator that allows you to make a comparison with direct competition.

The average daily price is key because seeing the performance in a hotel establishment in specific periods of time. If the ADR goes up, it means that the accommodation revenue is also going up and vice versa. That is why knowing this metric is essential to establish strategies to optimize profitability.

DISTRIBUTION STRATEGIES TO INCREASE THE AVERAGE PRICE

Distribution strategies are a key tool for a hotel or resort to increase the average price. Well, it is a plan that allows you to advertise an accommodation on a distribution channel. And this channel helps potential customers view offers, compare rates and subsequently make a reservation.

A distribution channel is an intermediary between a business and its customers. In hospitality, its objective is to bring the customer to the product or service, that is, to take them to the hotel, restaurant or spa. In addition, distribution channels offer certain benefits, the most notable of which is the fact that hotels achieve great reach and expansion in the market.

There are at least two types of distribution channels: direct and indirect. In this case, we will focus on the direct channel as a strategy to increase the average price.

THE DIRECT CHANNEL: MAIN STRATEGY TO INCREASE THE AVERAGE PRICE

The direct distribution channels of a tourist establishment are, first of all, its website. This is the most notable, since clients have the facility to make the reservation directly without the need for intermediaries. And secondly, email, telephone and social networks also stand out as direct channels.

Direct distribution channels help increase the average price for several reasons:

  • Your tourist establishment does not have to pay commissions, so reservations are more profitable and costs are reduced.
  • You depend less on online travel agencies (OTA).
  • The hotelier has a direct relationship with the client, so he can know their behavior. This in turn helps to adjust to your needs and preferences.
  • A more effective marketing strategy can be implemented as you focus on your market segment.
  • You have a greater possibility of customer loyalty.
  • The service offering can be expanded.
  • In case of problems in the reservation, the solution is faster and simpler, since there are no intermediaries.
  • You can create a customer database for subsequent email marketing campaigns.

HOW TO CONSOLIDATE YOUR DIRECT CHANNEL TO INCREASE THE AVERAGE PRICE

It is not enough to have a direct channel to guarantee the profitability of your business. To increase the average price it is necessary to go further, said channel must be consolidated. In this way, success will be more than guaranteed, since you will be able to obtain more reservations and position yourself in the market.

There are several aspects that must be considered to consolidate your direct channel. Below, we talk to you about the most important ones.

WEBSITE OPTIMIZATION

Optimizing the website and the booking engine is essential in consolidating a direct channel. It will allow you to increase the average price of your tourist establishment effectively.

An optimized website is one that is well designed, fast loading and has attractive content. Pages like this can be easily ranked, ensuring that visitors find it through search engines. This certainly increases the likelihood of getting more direct bookings.

Within this optimization it is also important to have a direct, intuitive and specific booking engine for the website. With this engine it is not only possible to simplify the reservation process, but also create a customer database. Likewise, these engines allow increasing the number of direct reservations.

Success is inevitable with a booking engine on a website that offers the user the best experience. This allows for easy viewing of availability, offers and prices in real time. Furthermore, in this way the dependence on intermediaries is reduced, allowing the average price of the establishment’s rooms to increase.

EMAIL AND PHONE

The combination of email and telephone is important in consolidating a direct channel for a tourist establishment. Both tools allow you to maintain contact with clients, which also helps to increase the average price of accommodation.

Through these means, it is possible to promote exclusive offers, offer special packages and even implement loyalty programs. All of this allows you to consolidate a tourist establishment and increase the number of users loyal to the business. Likewise, with these strategies and means of communication, direct reservations are also encouraged.

Using email and telephone systems it is possible to have a closer relationship with customers. This builds trust and loyalty towards the accommodation, which ultimately translates into an increase in price and greater profitability.

EFFICIENT MANAGEMENT OF SOCIAL NETWORKS

Social networks are perfect platforms for the strategic promotion of a resort, hotel or tourist establishment. They allow you to interact directly with users and consolidate the brand.

But having a social network is not enough to achieve the positive results you expect and increase the average price. It is necessary to manage these networks efficiently, to create a community loyal to your business. For this, it is important to share quality content, respond to comments, share experiences and apply digital marketing strategies.

On the one hand, social media can attract a specific audience and encourage direct booking. While on the other hand, real-time interaction with followers builds trust and loyalty. Therefore, efficient management of networks is crucial to consolidate yourself.

CONCLUSION

Raising the average price of your hotel or resort through the direct channel is not only a financial strategy, but a commitment to excellence and customer satisfaction. The average daily price is a key indicator that reflects both the value perceived by guests and the operational efficiency of the property.

Through smart distribution strategies and effective consolidation of the direct channel, you can achieve a sustainable increase in average price. Optimizing your website, strategic use of email and mobile, and careful management of social media are powerful tools for building a loyal customer base and encouraging direct bookings.

At the end of the day, these actions will not only increase your revenue, but will also strengthen the reputation and long-term success of your hotel.

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