What people want and what the market demands are not always on the same page. Looking forward to the new year, there is still plenty of time to make some much-needed adjustments to your revenue management strategy to ensure the hotel maximizes its potential for profit.
#1 – Understand Your Market Segments
What does the local market dictate and demand? What types of travelers are using your property during the week and weekend? What is the competition, even if not in the same area, offering these guests that you are not or are unable to offer?
Knowing the answers to these questions will enable your sales team to develop an appropriate pricing strategy to maximize room rates for each specific niche of traveler. It will also enable the team to dial in specific advertising campaigns and offers for each market segment.
#2 – Improving Search Visibility and Rankings
While rankings are obviously important, so are the overall online presence and visibility of the property. Everyone wants to be at the top of search engine results, but there are only a few slots on the first page of Google. Lower rankings, however, can be offset by a strong online presence.
This can be done with a focused social media strategy, a proven and tested online advertising campaign, as well as better content management. Assuming marketing has the ability to contribute and manage some aspects of the website, a steady stream of quality content that offers real insight for travelers can be extremely beneficial in terms of the property’s online presence.
#3 – Direct Booking Incentives
There is far more benefit in getting guests to book directly with the property than relying on outside booking sites like Hotels.com and Travelocity to sell rooms. First, there is no need to pay a commission to a secondary outlet for providing room sales, but that is far from the best benefit.
Because commissions are not being paid, hoteliers can offer significant benefits to guests booking directly with the property. This can come in the form of bonus points on frequent traveler accounts discounted rates, exceptional amenities and perks. However, it also provides the property with the opportunity to offer these guests upselling opportunities not necessarily available when using outside booking sources.
Many big brands like Hilton offer the opportunity to check in early or secure a late checkout when booking directly. Properties can also offer a variety of packages, such as a room and dinner package. It enables you to drive sales in other outlets of the property, something that is not likely to be available when relying heavily on outside booking agents for the bulk of room sales.
#4 – Interdepartmental Cooperation
If you want to tie benefits and selling points outside of room sales, it is imperative to work with the other departments rather than force-feeding these department heads and directors your ideas. The last thing you want is to create a wedge between sales and another department that can create significant animosity and problems moving forward.
The key is to not keep your team siloed between departments. Create avenues where everyone is able to work with each other, without one person dominating every team.
The best way to improve interdepartmental communication is to have the right leadership. Need help finding a General Manager or Director of Sales & Marketing for your property? If your goal is to increase revenue for 2023, you should start looking right now. Our team can expedite your search in a matter of days. Reach out to us here.