Hotels are businesses and like any other business, they need to generate revenue in order to survive.
NB: This is an article from eZee Absolute
But with the ever-growing competition, how can small hotels keep up? How can small accommodation providers keep revenue flowing? There are various ways of generating revenue in the hospitality industry. However, as a good practice, hotels need to first analyze their current business strategies and determine the scope of implementation of new methods.
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Following are some of the fail-safe tactics that accommodation businesses can use to improve the revenue flow. And also, as promised, there are some non-room revenue generation sources as well.
Check each of them out and see how you can make the best out of them.
1. Hotel sales strategies to increase occupancy and revenue
1.1 Pricing strategy
Pricing is at the core of a hotel’s overall revenue strategy. If you get this right, you’ll get most things right.
Here are some of the tactics you might want to try at your hotel:
- Price a little higher than your competitor but offer more extras and add-ons.
- Offer discounts if you often go low on occupancy. However, you might then want to try to generate revenue from other services.
- Try pricing your room based on the cost of running your hotel rather than external factors such as competition.
- Change your pricing depending on demand during specific times of the year.
Note: Before implementing these strategies, run a thorough analysis of your hotel’s current state. And based on the outcome, decide what works the best for you.
1.2 Group sales strategy
Group bookings play an important role to increase revenue for small hotels apart from individual bookings. However, despite the ability to bring in a huge amount of income, group bookings are being overlooked by hotels the majority of the time. That shouldn’t be the case.
Hotels, especially the small ones, should invest a good amount of time figuring out strategies on how to get more group bookings.
The strategies might differ a bit compared to chain hotels, but most of the concept remains the same.
At eZee, we have a dedicated blog on ways to increase group bookings at your hotel, do give it a read if you want to learn the nitty-gritty.
1.3 Destination marketing
Destination marketing is most probably one of the fail-safe methods for small hotels to attract travelers and boost revenue.
For example, Mahabalipuram in Chennai is filled with small hotels and resorts. One thing that is common among all the properties is that they all market the location. And this practice of destination marketing has not only made Mahabalipuram a great attraction for tourists worldwide but has also helped all the hotels generate decent revenue.
Now, it might seem intriguing and you might want to start right away. But you need to have a strategic approach to this. Try learning about the location in detail, determine the type of tourists who would like to visit there, and look at various other factors.
Once you’re off to good analysis, you can run marketing campaigns for the destination and link your hotel to it.