Non-room revenue can make all the difference when it comes to profitable operations in 2021. Each booking is an opportunity to capture more than just the nightly rate.
The more optimized your operation is around total revenue generation, the stronger your performance will be! Here are 10 ideas for generating non-room revenue and building a more resilient (and profitable) hotel operation.
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#1: Wellness focused activities
After a tumultuous year, your guests are looking for to refresh, restore, recharge and renew. Along with health and safety protocols, make sure to emphasize your property’s wellness opportunities, including on-site activities and amenities as well as your proximity to parks/natural areas.
Everyone wants to feel their best when traveling, so don’t feel shy about touting your organic bath products, eco-friendly housekeeping supplies, or the meditation app on your in-room tablets. Consider adding new offerings that immerse guests in nature, whether it’s an outdoor yoga class or a guided nature walk with a local expert. You can also extend your wellness focus with creative spa packages and locally-sourced, immunity-boosting menu items at your F&B outlets.
#2: Offer customizable packages
The standard packages, such as a romantic getaway weekend with champagne on arrival, may not be sufficient in today’s personalized world. Instead of telling guests what they want, let them build customizable packages that suit their needs. This type of a la carte merchandising allows guests to get creative and build a perfect stay.
Another approach here is to leverage your CRM guest data to build personalized packages. Utilizing your CRM data will take some of the guesswork out of what to offer. This streamlines decision making for guests, giving them relevant options specific to their preferences.
#3: Give loyal locals a discount
Locals (and drive markets) are more numerous in quantity and visit frequency than those further afoot. Build-out loyalty campaigns that encourage local guests to frequent retail outlets and on-site amenities.
A great example of this is the “Neighbor Discount” that the Rowan Palm Springs offers its loyal locals. The discount doesn’t have to be significant to make an impact and deepen loyalty. Even 5% off can be the deciding factor when locals decide where to go out to eat, play golf or enjoy a spa treatment. These small gestures can also bring bookings
from staycations and word-of-mouth recommendations when friends and family visit!
“What can I offer [local residents] by way of service? Food and beverage? Dry cleaning? Key service? Leave their luggage? Recover a rental car? Drop it off? [We’re] changing, radically, and entering revenue that can grow 20 to 30 percent a year.”
–Accor CEO Sebastien Bazin
#4: Utilize your unused common space
When you’re looking to optimize revenue, you need to get creative with every asset at your disposal, including your
actual square footage. Collaborative workspaces were already on the rise pre-COVID, and offer a viable resource for hotel revenue.
Between pets, partners, kids, and a general lack of privacy, there are a lot of people seeking alternative spaces to work
online. Along with renting smaller conference rooms by the hour, you can take underused areas like your lounge and
set up individual workspaces with comfortable seating, fast internet and access to your F&B offerings. Simplify the process even further with set hourly, half-day or full-day rates.
#5: Dog-friendly services and amenities
People love to travel with their dogs, and one of the best ways to make these guests feel welcome at your hotel is catering to their four-legged friends. Elevate your pet-friendly rooms with thoughtful welcome amenities like dog beds, toys, and treats. You can also keep extra waste bags on hand at the front desk and sell additional pet products at your on-site market or through room service.
To really stand out from the competition while supporting your local community, consider partnering with nearby doggy daycares, groomers, and/or vet clinics to offer additional services such as dog walking, baths, dog sitting and more. Going the extra mile for pets is a great way to show you care about your guests’ total experience.
#6: Sell local goods and exclusive experiences
Boutique brands, such as the Ace Hotel, have long relied on partnerships with local makers and artisans to boost brand credibility and drive ancillary sales. These eCommerce efforts can add tremendous value, especially for those positioned as lifestyle brands.
Even for non-boutique brands, there are opportunities within the local community. Develop partnerships with artists and local businesses to provide products and experiences for your guests, such as locally-made soaps or chef’s tasting menus at a local gastropub.
You can then feature these businesses across your property (and owned media channels) to deepen the local connection — and establish a new revenue stream. These curated products and exclusive experiences can be sold to guests on-site and online.
#7: Get creative with childcare and F&B
Creativity is the accelerant to ancillaries. Look across your property for unique ideas and add-ons that can entice guests and locals) to spend more money on-property. For example, you could offer on-demand childcare for families juggling work and remote learning. Or you could partner with a local bartender and liquor brand to create an exclusive cocktail series. The idea is to build buzz that drives interest in your F&B.
Use A/B testing to evaluate your ideas. Test different combinations of images, headlines, words, and offers to see how each segment responds. Use this engagement data to decide which packages and campaigns to feature on your website and market to guests on other channels.
#8: Sell hotel products
If guests can’t seem to get enough of your linens or rave about your private label toiletries, consider selling those items on your website. From bathrobes and sheets to candles and tea collections, international brands and boutique hotels alike have driven revenue and built loyalty by offering guests the ability to purchase branded items directly from the hotel. When your guests can’t come to you, let part of your hotel come home to them.
Revenue management isn’t just for rooms. Each non-room segment has different profit levels, so base all decisions on profitability over revenue. Prioritizing the most profitable revenue first gives you greater control over your performance — and ultimately positions you to maintain competitiveness in the marketplace.