Tips to Increase Your Hotel’s Profitability

by usuario4 usuario4

11 November, 2017

Tips to Increase Your Hotel’s Profitability

Attempt to boost your hotel’s profitability by optimizing occupancy rates. 


The objective is to analyze your market and generate the right offer to avoid unstable moments of occupation without the need to lower prices.


Balance is the most important factor in both daily life and in the distribution of hotel rooms. Having regular reservations distributed along seasons, without unstable moments, is the dream of any hotel revenue management. It’s very common to undergo low occupancy from Monday to Friday or to have low seasons at times of less traveler affluence to beach or mountain destinations. These are common situations that should be dealt with by means of good product management and product distribution, through creative measures which do not lead to product devaluation.


When we talk about hotel occupancy we mean the rating of occupied rooms at a lodging during certain times. We can define the occupation rate in specific periods in order to identify needs related to chronological factors. When we have a large number of booked rooms, it means that we have a high occupancy rate, and it does not always mean that it provides higher profitability. In revenue management, we must start from the concept that high occupancy, at any price, does not ensure profitability.

Good occupancy rate for hotels may vary depending on chronological factors related to the following parameters:

  • Hotel typology. Hotels with specific characteristics determine the type of traveler and the market associated with this which may exist at a certain time.

  • Location. There are more interesting locations for travelers at certain times of the year. Local festivities of a specific destination generate a flow of travelers . Events of this type favor the distribution of hotel business in certain places.

  • Need for experience. There are experiences that have a better rate of sales at specific times of the year. It’s usually easier to distribute hotels near a ski resort in winter, when the station is open, than in summer, when conditions are less appealing because they do not offer a competitive advantage.

  • Average rating in online portals. For certain results, associated with price factor and traveler segments, there are usually variations in demand and, therefore, in occupancy rate.


Tips to improve the hotel occupancy rate.


To balance the distribution it’s important to take concrete measures to improve employment rate. It’s also key to improve competitiveness in internal factors such as cleanliness, price or guest experience. The line of work must be in continuous improvement of “macro” factors and in making good decisions in concrete measures such as those proposed by Beonprice.

  • Create packages and promotions. Generating reasons why the interest on housing is enhanced can be considered at product level. Launching specific packages, at competitive prices, is a “classic” when it comes to “forcing” bookings at specific moments on clearly identified markets.

    Example: Special promotions for concert attendees showing the entrance.

  • Identify suitable markets for your product. Knowing the times associated with travelers at specific moments, on very specific markets, makes it easier to direct your offer on new potential customers.

    Example: If you have a hostel in a big city it may be interesting to post our offer on a platform of digital nomads.

  • Launching events for specific segments. Generate initiatives for specific segments that start from our space as a place of development.

    Example:  Dance Congress for salsa fans in Calpe during the month of November.

  • Partner with other local businesses. Collaboration in recommendations of travelers that connect with your hotel.

    Example: Hotel packages + special dinner at a restaurant in the area.

  • Weddings at any time of the year. Encourage the celebration of weddings on any day of the year, improving prices, will not lead to an advantage of hotel spaces more than profitable.

    Example: Special promotion “Marry a Friday” and take advantage of better prices and better service.

  • Collaborations with real estate. For people who travel from other countries, and who need to acquire a home, it’s interesting that real estate agents know trustworthy accommodations to recommend.

    Example: For Nordic travelers who want to live in Alicante, contact real estate agents and offer commission on recommendation.

After this review of advice, improvements and proposals on the occupancy rate, we only have to encourage you to improve this and other ratios, count on the appropriate technology and work in favor of maximizing profitability.

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