Guest Facility Updates That Add Service Value and Boost Revenue
Guest expectations are higher than ever, so how can you impress your customers while also charging more for your rooms? Mike Hardman, from hospitality supplies retailer Alliance Online, shares four updates hoteliers can make to add value to their offerings, encourage additional customer spending, and boost overall revenue.
If you want to boost revenue, I would always recommend focusing on customer experience and improving facilities. Adding value to your services in this way will allow you to increase room rates and encourage additional guest spending, helping to boost your overall turnover — all while keeping your customers happy.
Considering lowering your room rates to try to attract customers? If so, you might want to re-think your pricing strategy. It’s all too easy to assume that offering cheaper room rates will increase bookings and improve your RevPAR. But, while lower room rates might secure you a few extra bookings with budget conscious visitors, it’s very unlikely to result in an actual long-term increase in profit, as you probably just won’t be able to get enough sales to make up for the reduction in revenue. And it’s certainly not going to do your business any favours if your low-value, no-frills service leads to negative online reviews.
Here, I’ve shared four ways you can update your facilities and improve your offerings, all of which are simple and reasonably cost-effective to implement, but which can seriously help to increase revenue.
Provide personal touches
Offering a unique, personal experience will really impress your guests, and make them feel that they are getting great value for money. To make their stay as personal as possible, ask your guests about the purpose of their visit during booking, and then personalise your service and offerings accordingly. It could be as simple as leaving a complimentary sweet treat in their room if it’s their birthday, or a bottle of prosecco during an anniversary visit. The more closely related your gift is to their circumstances, the better!
Don’t assume you need to spend a fortune, either: a handwritten greeting from the manager costs nothing, but will really give your service that personal, bespoke feel. Thoughtful touches will make a memorable impression on guests, and they’ll be more likely to return again in future, too.
Upsell and offer upgrades
Upselling is one of the easiest ways to encourage customers to increase their spending, so offer a few upgrade packages during the booking process to try and tempt your guests into treating themselves. For example, you could leave fresh flowers and champagne in their room for their arrival, or offer ‘breakfast in bed’ in the morning. By making it part of a package deal, guests will think of it as better value overall, and so will be more likely to indulge.
Try to think of ways you can go above and beyond your standard offering. For instance, most hotels now offer a few basic toiletries, so why not offer an optional ‘pamper package’ complete with a full set of luxury toiletries, robes, slippers, and a small bottle of wine? Don’t just offer these extras during booking, either. You might find that guests are more tempted to upgrade if you offer them a deal as they check in, too.
Encourage spending with discounts and promotional offers
Offering discounts or promotional deals for your on-site facilities is a great way to encourage additional spending. For instance, you could leave a voucher or discount for a spa treatment or gym class in your guest bedrooms to tempt them into booking something extra. Or, you could encourage your customers into your restaurant with a free drink or starter. Guests are more likely to spend money if they feel like they’re getting an exclusive deal, so change your offers regularly and run discounts or promotions for a limited time only.
Cleanliness is crucial
You can offer all sorts of complimentary products and add-ons, but if the cleanliness of their room doesn’t meet their expectations, guests probably aren’t going to be won over with freebies. Whatever you’re charging for your rooms, customers will always expect them to be sparkling clean. So, don’t sacrifice your housekeeping budget in favour of add-ons and luxuries: it’s likely to prove counter-productive.
When it comes to increasing turnover, it can be tempting to slash room rates in an attempt to attract more customers. But, it’s often much more profitable in the long term to take steps to improve your service and increase room rates. Take my advice on board, and you should be able to both increase your room rates and encourage guests to spend a little extra over the course of their stay.