It’s important to balance and control costs while working to increase revenues to remain profitable.
Increasing the bottom line requires work. The success of your team’s efforts should be a measurable rise in occupancy rates, ADR and RevPAR. Your efforts need to target and attract single travelers, business travelers and increase group hotel bookings.
The following 10 ideas can help you to increase sales and control costs:
1. Keep employees happy and encourage them to be salesmen. Your employees are your most important assets. It’s important to keep them happy and focused on your guests. Encourage your team to come up with ways to cut costs, increase revenues and maximize customer service. Reward them for their ideas and efforts. Happy employees engage positively with guests.
2. Provide outstanding service. Happy guests pay dividends. They will tell friends and family about their experience. The Internet has created a world of instant feedback, both positive and negative. An unhappy guest can come back to haunt you with negative reviews. Keep your guests happy by providing top of the line service.
3. Use technology. List your property on an online group booking platform like Azavista. A platform like this will generate leads and help you increase your overall group hotel bookings.
4. Create a high-perceived value. Guests are willing to pay more if they feel they are receiving value for their money. The actual value is less important than the perceived value. If your guests feel like the service you are offering is worth $20 and it actually costs you $5 that is a big win. Also, try to move up the hotel rating scale. Going from a 3-star to a 4-star rating can make a big difference in how you are perceived.
5. Host special events and private functions. If you have space, you can increase group bookings by hosting business conferences, special events, reunions, family gatherings, and weddings. Special events like Lover’s Weekends, or Hot Tub Getaways during the winter months can fill rooms during normally slow seasons.
6. Work to increase point-of-sale revenue opportunities. Partnering with local vendors like car rental companies, restaurants, amusement parks, and concert venues allows you to sell additional services to guests. Use your front desk, gift shop or other areas to sell tickets, rent cars, or offer guests special discounts. Develop a line of hotel-branded products like shampoo, soaps, t-shirts, robes or linens to sell to guests.
7. Market directly to your guests. Gather contact information including the guest’s email address. Social media networking sites can help keep you in contact with prior guests and engage with new potential clients. Develop relationships, create special offers for returning guests, and create an email newsletter to keep your name “front of mind”.
8. Audit everything! Hotels can spend up to 50% of their operational budget on heating and cooling. Investing in a high-efficiency HVAC system can save thousands. Switching hallway lighting from incandescent to LED can save significant money on electricity costs. Audit everything, energy costs, technology, phone systems, and supplies for savings.
9. Encourage guest referrals. Encourage happy guests to spread the word about their experience. Reward them with discounts for their next stay, free meals, or gift cards.
10. Make your hotel stand out from your competitors. Give guests a reason to choose you. You can differentiate your hotel using pricing, outstanding customer service, free entertainment by the pool, or later checkout time. Be creative!
Even in a competitive environment, it’s possible to make changes that will increase your bottom line. By using creative and proactive solutions, you can reduce your operating costs and increase revenues without disrupting your day-to-day operation.