The recent white paper released by HSMAI is a gold mine for hotel managers and owners as shoulder seasons start to creep in. The white paper is an in depth explanation of various (and proven effective) ways to generate more revenue to your hotel’s bottom line. How? It is simple really; a good majority of the tactics discussed in the report deal with internal management, trends, and developing positive habits that lead to positive results. To recap, here are the top 3 ways that Trevor Stuart-Hill, President of Revenue Matters, recommends for driving more revenue:
1. Focus on Forecast Performance – It is critical to ensure that every level of employment has a clear understanding of the operational and financial forecasts of the company, as well as the implications that each carries.
2. Engage Your Associates - It is no secret that guest satisfaction is often times directly related to a physical experience. With that being said, it is important to empower associates at your hotel. After all, there is a good chance various associates will play a roll in forming your guests experience. Empowering your associates raises morale and creates a positive energy around the workplace.
3. Optimize Market Segmentation – Perhaps the most critical element to any successful business is understanding your customer. Rather than target customers in a broad bucket, find and focus in on your most profitable customer. Understand actions such as booking windows, channel preference, etc.
But What About the Other Ways?
Not to worry, there are still 6 more ways to generate more revenue through your bottom line, as discussed in the white paper. Let’s take a look at the remaining ways, as well as discuss what they mean for your business:
4. Match Staffing Levels to Demand – The hospitality industry is no stranger to last minute fluctuation in demand. It is important that hoteliers adapt accordingly and staff according to demand.
5. Know the Value of Your Services – Understanding the value of your various services and perks can go a long way in driving revenue. For example, a late check out or early check in time sliding for a normal fee – consider some options there.
6. Be Religious About the ROI of Your Marketing Spend – ROI is a key business metric in measuring the success of both basic and complex business projects and activities. Having a holistic approach to these numbers can pay dividends in the short and long term.
7. Wow Your Guest Before They Walk in the Door – A creative way to drive additional revenue to your bottom line is to enhance the guest experience before they even walk in the door. Leverage your social media to offer incentives to guests who book early, as well as present supplemental services that can be utilized for a small additional fee. Little things can go a long way.
8. Know Your Charges – It is a good practice to review a guests expenses days before they arrive. This ensures that everything was covered, and nothing was under or over charged. On the day of check out, do the same thing. You would be surprised at how often things are missed.
9. Be on Top of Your Hotel – Proactively managing your hotels assets is a sure fire way to increase your revenue. Closely monitor energy and efficiency at your hotel according to occupancy level and seasonality. Doing so with committed practice will prove to be beneficial.
If you are looking at the coming months and wondering how to grow your revenue through your bottom line, look internally at these nine steps first. Simple practices that go a long way in both employee and guest experiences. Using these steps as a reference will be beneficial to both hotel management and guest.