February 8, 2021
Hotel Revenue Generating Ideas
Jos Schaap | ROOMDEX
The ever-changing world of hospitality has led the hotel industry’s focus away from improving rooms to boost occupancy, which means hoteliers need to look elsewhere for revenue-generating ideas. Today’s travelers focus beyond the quality of a hotel room. They embrace hotels that deliver a deeper guest experience – one that consists of more than just a renovated accommodation.
Rather than depend on renovations to attract guests, then, general and revenue managers should turn to revenue-generating ideas that offer a more complex guest experience. Guests no longer want to be confined to their rooms, no matter how plush the beds or high-tech the entertainment options. Guest expectations have evolved further than furnishings and decor, and they have expanded to include a variety of customized and personalized experiences.
That is not to say the guest room does not matter at all, though. It does when you think of the satisfaction today’s travelers get from their accommodation. They want a room that delivers a fulfilling and enriching experience; think expansive suites for families, private pools for honeymooners, and architecturally significant rooms for design buffs. Most of all, travelers today look for a hotel that suits their needs, whether that be rooms that are kid-friendly, pet-friendly, design-focused, business-oriented, or romantic and private – or through add-on services.
Upsell Personalization to Generate Hotel Revenue
When looking for hotel revenue-generating ideas, therefore, it is smart to think of travelers’ need for personalized experiences. Upsell offers, such as room type upgrades that perfectly fit your guest personas, are great ways to capture ancillary income. Add-ons like early check-in and late check-out are excellent extra paid options to solicit guests who would welcome more flexibility.
Driving up direct bookings and optimizing room rates across all distribution channels are certainly important, but hotel revenue generation must consist of more than these practices in and of themselves. Think of your rooms holistically, as more than just room rates. Lean toward complete hotel revenue generation through ancillary revenue ideas, which will help boost your profit and ensure guests receive the most value for their money.
The more revenue you have streaming in through a variety of channels, the more ways you have to improve your hotel overall and offer a more exclusive experience for your guests. If you are not already focusing on hotel revenue-generating ideas like room type upselling and room add-ons, consider that these ancillary revenue streams can quickly become a whole new source of income for you.
To zero in on which kids of hotel revenue-generating ideas are right for your property or properties, think about:
What makes your hotel rooms unique? What do your accommodations offer that no others do? Are they close to a landmark or airport (and offer a view)? Is the location near things that guests might want to do or be close to? Can you see the water or mountains from your rooms? Are your accommodations designed by a popular local designer? Beachside rooms with walk-up water access are a draw for certain travelers, as are themed guest rooms or suites.
With this in mind, you can choose how to best frame your upsell and add-on offers to generate additional hotel income. The story of your hotel, and your targeted guest personas, will guide your ideas for extra revenue opportunities.
Here are some hotel revenue-generating ideas you can incorporate into your overall revenue generation strategy:
Create packages. Bundle ancillary add-on services with certain room types, especially with higher-category room types. Themed packages can include family packages with kid-friendly suites and theme park tickets, design-focused packages with architecturally significant rooms and tickets to a local design show, or pet-friendly packages featuring rooms that come with pet beds, pet bowls, and pet-sitting services.
Upsell room types. Target pre-arrivals with room type upgrade offers based on guest data that you have collected about your guests. Guests who may have been considering a higher-category room during the booking process, but decided to decline the option, can receive an emailed ‘second chance’ offer to ultimately make the choice that will deliver a more fulfilling guest experience. ROOMDEX Upgrade Optimizer is the perfect third-party hotel upsell software tool to provide personalized offerings for guests.
Offer early check-in and late check-out. Upsell pre-arrivals, and existing guests, with early check-in and late check-out offers. Pair your check-in and check-out upsell program (which ROOMDEX Upgrade Optimizer can manage) with a seamless mobile app experience that provides guests with tailored personalized offerings for other add-ons that they can purchase in a self-service manner (think spa services, food, and beverage specials, tickets to local events).