Optimizing Revenue per Available Room (RevPAR) is one of the key focuses of most hoteliers. Travel is up, but so are guest expectations. Navigating the complex world of revenue management requires innovative solutions. While dedicated revenue management software is a component of this process, all of your technology must work together to increase your bottom line.
NB: This is an article from Fuel Travel
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In addition, many hoteliers are broadening their scope beyond just RevPAR. Room rates should just be one slice of the overall revenue pie. Look at strategies to optimize guest spending via add-ons, services, and amenities.
How to Increase Monthly Hotel RevPAR:
To enhance monthly RevPAR, hoteliers must adopt strategic approaches that leverage market insights, guest preferences, and current trends. Here are 10 effective strategies based on real-world hotel feedback.
1. Focus on Direct Bookings:
Direct bookings are the “cheapest” room bookings, coming in without any commission or fees. Getting more of them is easier said than done. Encourage guests to book directly through your website by offering exclusive perks and personalized experiences.
Implement an easy-to-navigate online hotel booking engine that’s designed to increase conversion and promote cross-selling. One strategy for direct reservations in your booking engine is to include urgency messaging – such as the number of reservations made recently or time-based special offers.
2. Evaluate Your Digital Marketing:
Your hotel’s digital marketing efforts should be strategic and specific. Take a look at everywhere a guest could potentially find you, and consider if you’re representing yourself as best you can on that channel. Are there channels you’re missing?
Digital marketing is your way to get new, loyal guests that book directly. Taking the time to thoroughly evaluate your current efforts is essential to increasing brand awareness and revenue. Some key areas for consideration:
- Is your social media presence active and relevant?
- Are you emailing past guests with timely, dynamic messages?
- Are your competitors showing up with paid advertisements above your organic results?
3. Enhance Online Reviews:
Monitor and manage online reviews across platforms to maintain a positive reputation and attract more guests. A strong reputation on key review channels will increase occupancy and, in turn, your RevPAR.
4. Implement Dynamic Pricing Strategies:
Utilize data-driven insights to adjust room rates dynamically based on demand fluctuations and market trends. Your property management system and hotel tech stack must be set up to make this possible. That means you’ll need the ability to quickly and efficiently change rates on the go, not just when you’re sitting at a desk. Your hotel booking engine and channel manager should be reliably integrated to immediate updates across direct and indirect channels.
