With Covid lockdowns fresh in our memory, the desire to travel is still strong.
NB: This is an article from WebRezPro
But as inflation and high flight prices persist, the revenge travel surge may start to wane. As the cost of living continues to rise, so will travelers’ price sensitivity. Hoteliers should keep this in mind as they strive to balance profit with increasing expenses.
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Many properties enjoy high nightly rates now, but those rates could become harder to maintain looking forward. While there’s a time and place for discounting in any dynamic pricing strategy, it must be considered thoughtfully to avoid selling yourself short or eroding your business’ credibility. How can you maintain (and even grow) ADR and occupancy in a softening market? Keep reading for ideas…
Value-added packages
Attract price-sensitive guests by offering added value. Packaging rooms with activities and/or special amenities allows you to maintain room rates by discounting additional services to offer guests a way to bundle and save. Not only that, value-added packages make your property stand out from the competition and increase TRevPAR (total revenue per available room).
Value-added packages work well for:
- Off season travel – many travelers look to vacation outside peak seasons and popular holidays to enjoy the same experiences while saving money.
- Staycations – flying is more expensive than ever, so staycation packages present an appealing option.
- Collaborating with other local businesses – develop mutually beneficial partnerships with nearby restaurants, tour operators, and attractions to offer guests unique experiences that help your property stand out.
Group rates
Many properties are experiencing an upturn in group travel for business and events, which could help balance the scales when/if leisure travel slows. This increasing demand puts hotels in a great negotiating position.
Keep an ear out for upcoming big events like conferences, festivals, concerts, and sports games happening near you and promote group offers accordingly. Consider building relationships with event organizers to create cross-promotional opportunities and encourage repeat business.
Accommodating groups is much easier when you’re set up to handle group bookings smoothly with a property management system that includes group folios for managing room blocks, reservations, group check-ins, billing, and more.
Extended-stay pricing
Attract the new wave of workationers by using minimum length of stay (minLOS) restrictions to create extended-stay rates and packages. Remote workers and digital nomads stay longer because they can. (They don’t have to be in the office on Monday.)
While an extended-stay price rewards guests with discounted nights, these bookings are extremely valuable to hotels. Longer stays drive ancillary revenue, reduce operational costs, and maximize occupancy to boost profit.
OTA promotions
Take advantage of marketing and promotional features offered by your OTA partners. Running OTA promotions boosts the visibility of your listing and targets high-intent customers.
For example, Expedia’s members-only promotions can be used to attract high-value guests that stay longer and spend more, while mobile-only promotions draw on-the-go mobile users looking to book now.
Such promotions are simple to set up in your OTA account, and when your OTA channels are integrated with your property management system, managing inventory and reservations across your online distribution platforms is a breeze. Reservations flow directly into your property management system from your OTA platforms, and availability is automatically updated across all channels.
