10 Key Actions for Boosting Hotel Sales
As hotels work with higher-quality tools, they are able to obtain information more efficiently and better able to analyze the market in which they are most interested in, thus making better decisions.
Having access to resources such as a good website, successful online marketing strategies or a customizable booking system allows for successful Revenue Management strategies focused on enticing sales through one´s own portal.
When the amount of data increases, and that data provides more information, hotels must be able to make better decisions. Revenue Management departments should make the most of the information reported by the various departments of the hotel, using historical data, business trends and market situations.
The main advantage of Revenue Management lies in how we use the information obtained about our own lodgings in relation to the market. This will help us determine which strategies and tactics will improve the originally expected results.
Hence, we can affirm that although predicting with precision is important, it is far more important to be able to execute actions that improve results based on the obtained information. Listed below are a number of key actions that entice hotel sales:
Adjust rates to a competitive set. It consists of studying the direct competition by adjusting the marketing strategy to the relationship established with the common market.
Understand which segments and channels are working best for the hotel. Identify the relationship between the segments of interest and the channels needed to distribute the product.
Have rates and room availability ready in all possible channels with at least a 12-month view in advance. Make the most of advance reservations with convenient improvements for foreseen travelers.
Manage total inventory of rooms. Be sure to sell suites and higher room categories to take advantage of maximum profitability.
Provide added value to the product. Through direct sales we can offer packages with the same prices and give out extra perks that are of minimum cost for the establishment.
Discounts at reception. If there´s an asset we possess that Online Travel Agencies (OTAs) lack, it’s hotel front desk and guest service. If we acquire a customer that booked through an OTA, we should avoid having that customer re-book through that channel. One way, for example, to do so is by giving him a discount the next time he books directly with us.
Try alternative channels. One growth formula to maximize sales, would be to develop customized packages for certain market segments that fit the characteristics of our hotel accommodations.
Use of special guarantee/cancellation policies for guest stays. Adjust the guarantees of reservation and booked stay of the clients. It is necessary to avoid late cancellations, no-shows or early check-outs using special guarantee/cancellation and stay policies.
Maintain active policies of Up-selling and Cross-selling. Adjust the pricing structure and composition of rooms and services. Departments intended for sales in the hotel can help increase the average spending per traveler.
Focus on the demand, not on the number of rooms reserved. It is customary to make decisions that only takes into account information based on current hotel room reservations, but ideally decisions should be made using current information on room occupancy in addition to forthcoming occupancy estimates. It is, therefore, advisable to work with hotel demand estimations according to current room demand.
An indispensable factor to maintaining adequate levels of competitiveness, is our ability to adapt distribution and marketing strategies to hotel characteristics. The constant evolution of sales improvement will be the usual trend in a demanding and dynamic market requiring that professionals know how to interpret reality via technology.