Tips to increase hotel revenue during a low occupancy
A hotel’s revenue always fluctuates throughout the year. The hoteliering business, like any other business, is dictated by many external factors and can get unpredictable for some. A hotel’s room revenue may see highs during the peak seasons as well as extreme lows during off seasons. Hoteliers looking for ways to boost hotel occupancy often end up reducing room rates. This however, does not guarantee full occupancy or increased revenues.
Looking for hotel revenue generating ideas when occupancy level is low? We’ll discuss different ways that can add value to your business and increase room selling as well.
How to increase hotel revenue when occupancy is low?
Before we proceed, you need to understand your room occupancy rate.
a) Note down your total number of rooms
b) Write how many are occupied
c) Divide the number of booked rooms with your total number of room
Your hotel’s revenue dictated by occupancy rate is also dependent upon your hotel type, the location as well as the guest experience provided at your property.
5 tips to increase hotel room revenue during the lean phase
Consider the following strategies to increase hotel revenue:
You can turn a low occupancy period into your favour by analysing details that give you many answers to use different hotel room sales techniques.
1) Evaluate the peak and off seasons
Why is this important for a hotel’s revenue? A lot rides on your hotel type, location and what it has to offer. Is your hotel in close proximity of a popular beach? You would need to evaluate your peak periods – whether the peak periods are at weekends or during the summer season. In this case, you might see a drop in room occupancy during the monsoons. Understanding this data will help you proceed further and find ways to boost hotel occupancy as we’ll see further in this blog.