For various reasons, even the most popular hotels struggle to fill beds and make the revenue they need to stay profitable. And there’s no denying that a plethora of factors can affect a hotel revenue and occupancy rates; from pricing to the location, the season, and various types of crises.
Increasing occupancy is by far one of the best ways to recover lost revenue. But how do you increase hotel occupancy rates, especially now that the world is recovering from the COVID-19 pandemic?
Well, it can be a challenging task, but one that is much easier to accomplish with the right processes in place alongside leveraging technology. Here are a few ways hotels can increase their occupancy rates and recover revenue.
Make it Easy to Book Online
Many hoteliers don’t use the internet to generate bookings, and for some, booking on the web still seems too complex. But there are several tools that can help make booking a hotel much simpler.
The easiest way to overcome this barrier is through partnering with an online travel agency (OTA), which not only provides a wide range of options for booking hotels but is also capable of automating the entire booking process.
Partnering with OTAs can enable hoteliers to maximize their revenue and better target the best possible consumers for booking their hotel.
Harness the Power of Technology
As we all know, technology has been a powerful force that has changed the way people work and live in many ways.
Hotels that get ahead of technology and implement the right software solutions are capable of maximizing their revenue and improving their customer service levels, not to mention ensuring their bookings are secured and efficient.
For example, hotel sales and catering software can help you track and manage event bookings as well as group sales better.
Having a software solution that can track reservation data, implement and monitor guest-centric strategies, and be adaptable to growing travel trends will ensure your hotel is on the right track to reaching your revenue goals.
Be Solidly Present On the Web
To provide a better customer experience and increase occupancy, you need to be solidly present on the web. A clear web presence, including top-notch web design, highly targeted marketing, and quality content will not only increase your website traffic, but it will also help hotels recover the revenues lost from online sources. Don’t forget to stay active on social media!
Incorporate Packaged Deals
Along with implementing strategies and solutions to boost revenue, you should also include targeted marketing and packaged deals, which provide a relatively cost-effective way to attract customers. And like in any other industry, nothing beats adding customer value in the hotel industry.
Nowadays, business travelers are increasingly focused on cost-conscious alternatives when choosing hotels, alongside factors like the amenities offered, location, and security. This is to say that deals that provide them with great value for money while offering a complete travel experience can be an effective way to increase hotel occupancy.
Decorate & Renovate
Hotels that have taken their customer experience to the next level are also much more likely to increase their occupancy and increase their revenue.
While some hotels have been left behind in this respect, there are some hoteliers that are putting a lot of effort into decorating their hotels, with the end-goal being to create spaces that will be the first point of contact for travelers when they are planning their next trip.
As an example, Hilton has been creating and renovating its hotels for a while with the goal of creating “hospitable, exciting spaces and destinations, to help guests feel like they are part of a vibrant new community.”
Consider Demand-Based Pricing
Demand-based pricing (DBP) is a relatively new concept that has taken the world by storm in recent years. Although this form of pricing involves setting a price per room or per night, the pricing strategy behind it differs depending on the location of the hotel.
Nonetheless, demand-based pricing mostly means adjusting your booking prices depending on factors like competition, what you’re offering, the season, and the number of people you expect to be using your hotel at that time of the year.
All in all, this pricing strategy has significant potential for maximizing revenue, especially if you use it to make bookings for groups and wedding guests.
While it can be challenging to determine exactly what it takes to ensure your hotel is successful in today’s modern world, one thing holds true.
If you’re willing to work hard to find the right solutions to unlock its true potential, it is entirely possible for you to grow the hotel business in a sustainable manner. The tips above should help increase occupancy rates, and ultimately recover you some lost revenue.