Many hoteliers have the business in their veins, intuitively understanding the nuances of hospitality. Running a successful hotel requires balancing day-to-day operations with the need for strategic decision-making. Hoteliers are often engulfed in the immediate demands of their business, making it challenging to step back and see the big picture.
NB: This is an article from Demand Calendar
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We explore three key areas where hoteliers can make strategic improvements over time: increasing revenue, enhancing the flow-through from revenue to profit, and boosting productivity. Concentrating on these areas ensures your hotel remains competitive and thrives in a market where guest behavior constantly changes.
Increase Revenue
The only way a hotel can become successful is to reach a healthy revenue level well above the total costs of running the business. Achieving this goal requires strategic focus and effort. Therefore, hoteliers should spend 80% of their time on activities that generate revenue. Enhancing revenue streams is the first step toward boosting profitability.
Understand Guest Motivation
To create a truly unique guest experience, it’s crucial to understand why guests travel to the destination and what they seek from their stay. Whether guests visit for business, leisure, or other personal reasons, tailoring your offerings to meet their needs and expectations can significantly enhance their experience and increase guest satisfaction.
A Unique Guest Experience
Creating a unique guest experience is crucial for setting your hotel apart from competitors and attracting the right guests to ensure their satisfaction. Emphasize personalization and memorable touches that resonate with your guests. Here are a few examples:
- Coworking Spaces for Digital Nomads: With the rise of remote work, providing well-equipped coworking spaces can attract digital nomads and business travelers looking for flexible work environments. Offering fast Wi-Fi, comfortable seating, and meeting rooms can create a productive atmosphere that meets working travelers’ needs.
- Tailored Recommendations for Local Attractions: Use guest data and preferences to provide personalized recommendations for local attractions, dining, and experiences. By becoming a trusted source of information, you can enhance the guest experience and encourage them to explore the area, adding value to their stay.
- Exclusive Events and Activities: Organize exclusive events or activities that reflect your hotel’s unique character and appeal to your target audience. This could include themed dinners, local cultural workshops, or adventure excursions, offering guests memorable experiences they won’t find elsewhere.
Expand Revenue Streams
- Diversify Offerings: Introduce new products and services such as wellness packages, adventure tours, or culinary experiences. These can attract a broader range of guests and provide unique experiences that differentiate your hotel. Offering tailored packages or themed events can create additional demand and revenue.
- Maximize Revenue per Guest: Use AI and personalization to sell more to each guest. Analyze guest data to identify upselling opportunities like room upgrades, dining options, or spa services. Personalized recommendations can enhance the guest experience and increase spending per visit.
