To truly understand the financial impact of every stay, you need a metric that goes deeper than room revenue alone. Revenue per Available Guest (RevPAG) provides a comprehensive view of the total revenue generated by each guest, making it a useful profitability metric – especially for properties that earn significant non-room revenue.
NB: This is an article from WebRezPro
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How to Increase Revenue per Available Guest
RevPAG grows when guests are presented with relevant opportunities to engage with ancillary services, whether that’s curated activities, dining experiences, spa treatments, or other value-adds. Your property supplies far more than a place to sleep, but those enhancements must be marketed appropriately, otherwise they’ll be perceived as an annoyance rather than an opportunity. Avoid promoting honeymoon packages to business travelers or children’s programs to couples seeking a romantic escape. Instead, tailor the offer to the guest. Eighty percent of customers are more inclined to purchase from companies that provide personalization.
To deliver meaningful personalization, you must achieve effective guest segmentation – separating your honeymooners from your business travelers. Do this by leveraging the data collected through your booking engine and stored in your property management system (PMS).
Even seemingly small data points, like a guest’s home address, offer powerful insights. Knowing whether a visitor is local or traveling from afar allows you to craft targeted promotions and follow-up campaigns that feel pertinent and timely.
How to Manage RevPAG
Managing upsells to increase RevPAG must be seamlessly aligned with your reservation process. If the process is cumbersome – laden with extra steps or confusing interfaces – guests are far more likely to abandon ancillary purchases or, worse, seek alternatives at a competing property.
Invest in a streamlined, user-friendly booking engine integrated with your PMS that enables guests to easily select add-ons and activities as they complete their reservation.
However, promotions don’t have to be limited to the moment of booking; they can be strategically delivered throughout the guest journey, including in confirmation and pre-arrival emails. Upsell revenue generated from confirmation emails is on the rise, reaching an average of 90 dollars per booking in 2024, which means this is an opportunity no property should overlook.
Upsell opportunities continue once the guest arrives on property and can be thoughtfully woven into the experience without feeling intrusive. For example, when a guest has already booked at your spa, they are naturally more inclined to consider enhancements such as a massage, facial, or specialty treatment. Your point-of-sale system is essential in supporting these moments. When integrated with your PMS, your POS system can post ancillary charges directly to the guest’s room for a seamless payment experience. Make it as simple as possible for them to spend with you!
