While your mission as an accommodation business is to provide memorable and exceptional guest experiences for your guests, your goal is to earn capital and grow revenue.
NB: This is an article from Preno
This means, you must be both resourceful and innovative, in order to reap the most benefits of the services you have to offer. One of the many tactics that you can use when considering how to increase RevPAR for hotels, is to increase revenue with small guest add-on’s. It is often the extras that bump up a guests bill, and so you must encourage guests to purchase these.
Subscribe to our weekly newsletter and stay up to date
Order bumps (also known as upselling and cross-selling) are the “extras” or “add-ons” that you encourage a customer to purchase. In the fast food industry for example, a famous line is “would you like fries with that”.
In the hotel industry, this works the same way when you add optional extras in a guest hotel booking process.
Order bumps are little optimisations that you can do to improve profitability, increase bookings, and overall, improve hotel RevPAR. If you had 100 guests per month, even if just 1 of those opted for an extra (or ‘order bump’), this is extra capital, your hotel would otherwise not have had.
Let’s learn some examples of order bumps that boost Revenue Per Available Room…
1. Order bump: Airport transfer
How to increase RevPAR with ‘airport transfer’ order bumps
One common tactic that hoteliers (and businesses of all kinds) use to increase RevPAR, is by creating “order bumps”. Order bumps are “extras” that hoteliers can offer at the final booking stage, before a guest completes their booking.
Offering an airport transfer is a perfect example of an order bump, when considering how to increase RevPAR in hotels.
You can simply add this order bump or “extra” to your booking engine to increase the chances of upselling a guest’s stay with you, and therefore help increase hotel RevPAR.
2. Order bump: Champagne on arrival
How to increase RevPAR with ‘champagne on arrival’ order bumps
Another example of an order bump, commonly used in the accommodation industry, is adding an option of a small extra, such as “champagne on arrival”.
A guest may be booking a room for a special occasion (e.g. an anniversary or birthday), and by offering the “extra” of a bottle of champagne in the guests room, they are then likely to spend more money at your property on something they may not have even thought to ask for.
This extra revenue advantageously adds to your Revenue Per Available Room, before the guest even arrives at your property.
3. Order bump: Local activity partnership – 5% discount
How to increase RevPAR with ‘local activity partnership’ order bumps
One other common order bump tactic used in the tourism and hospitality industries to increase hotel RevPAR, is to partner up with other travel operators and offer a discount.
It might be that your hotel is based in close proximity to a ski field, and so you partner up and offer a packaged deal, where the guest saves 5% (in comparison to paying full price, if they were to book this activity separately).