A successful Hotel’s formula
There is no magic formula around this, but, whenever I have experienced a combination of both, the staff and management to maintain correct principles in the service industry then it can happen.
It's not wrong to say that almost every hotel owner has a dream to make a big name for themselves in the industry within a short time span. Always eager to generate as much profit as they can. In order to make it happen, the focus should be on both managing costs and generating revenues.
On a snapshot, RevPAR (Revenue Generated Per Available Room) and how is this calculated? Simply multiply your average daily rate (ADR) by your occupancy rate. For example: If your hotel is occupied at 70% with an ADR of $100, your RevPAR will be $70. The other way to calculate it is by dividing the total number of rooms available in your hotel with the total revenue from the night. and a hotel's occupancy rate increases is a clear sign that management is doing its job well. . We have narrowed down 12 ways that could be sufficient to generate valuable revenue in either start-ups or established hotels.
- Competitor Analysis
To become a prominent name in the market and to generate maximum revenue, it's good to engage in competitor analysis. Do extensive research about your competitors. Analyze how they are advertising, how they use that advertising. Read customer reviews. This will help you see your hotel's advantage over your competitor for an advertising angle, and also gives you an opportunity to use whatever strategies are making them successful. Use all this to formulate your own strategy to show potential guests why they should choose your hotel over one next door. - Happy Employees are the Real Asset
You are in a service industry, so it's extremely essential that your employees provide a positive, friendly, and professional experience for customers. So, while your profits increase, you can't neglect your employees. After all, they are the people who set the tone and compel guests to come back. Treat employees as the real ambassadors of your hotel, that way you can win the heart of your customer. This will keep them coming back and encourage your guests to recommend your hotel to others. - Offer a Homely Feel
It's very important to offer a homely feel to your guests, whether they are staying at your hotel for a single day or for a week. Have appealing furnishings. You can hang an amazingly sketched or painted print on the wall. Having soothing curtains, a well-decorated breakfast bar and other attractive furnishing could give the suite a homely feel or even an escape-from-home feeling. All this attention to detail can make a big difference in the ratings customers provide you which may turn into new guests, and return visits. - Generate Incremental Revenue Sources
You should formulate plans that push your guests to spend a little more. You can ask your guests if they would like to book a suite facing the beach for just Euro 30 more than the other suites. Similarly, you can formulate several incremental revenue resources, but make sure to provide value-added services. This could include a number of events, weddings, parties, VIP events etc… - Promote Personal Conversation with Guests
Guests feel good when they are called by their name and staff engages in conversation with them. It gives them the feeling that they are important to hotel management and its people. Expressing genuine concern for the guests' well-being and comfort. Try to treat your guests like a friend, like you've known them for a long time. - Your Creative Approach Can Make A Difference
You always have to think out-of-the-box to entertain and satisfy your guests. Educate your guests about the hotel. Promote its specialties. Make sure your guests know about your amenities, surrounding beaches, entertainment activities, etc. - Innovative Marketing Channels
Having one-on-one conversations with guests is important whether they are currently staying with you or have stayed with you in the past. A recent study shows that brands and companies using social media effectively to communicate with customers have increased revenue up to 60%. In this digital age, social media has brought a drastic marketing revolution that helps service providers stay in touch with existing customers and expand their customer base. - Customer Satisfaction Should be Your Primary Goal The customer is always right! Do your best to fulfill their requests and try to sort out the best possible ways to satisfy the guests no matter what. The hotel business is an entire industry where you have to create a prominent space for yourself. If the customer is satisfied with your services, there is an almost 100% chance that guests will refer your hotel.
- Do an Internal Audit
While running a hotel business, it's essential to do an internal audit twice a year to see the areas where you are overspending. It provides a clear picture of your expenses and helps you generate more sustainable strategies to overcome the cost. - A Focused Marketing Strategy
Study shows that 20% of hotel customer's account generates 80% of revenue. If you have enough corporate connections then it's a sensible move to spend your marketing budget on a particular customer base in order to meet the targets. - Network with Other Business Owners
Networking with business owners who can refer a sufficient number of customers is always a great way to broaden and maintain your customer base. Discounted tickets could be offered to customers to explore local attractions or a bonus could be offered if a guest shows a receipt from the hotel's networking partner.
One thing you need to make sure of while running a hotel business is the mantra “people first, then money”. If you incorporate this phrase at every step, you will find yourself and your hotel in a great financial position very quickly. - Essential hotel sales strategies are: group bookings, direct bookings, destination marketing, cross promotional sales, guest rewards strategies, revenue management strategies, upselling, cross-selling, packages, promotions, re-marketing, guest reviews, OTA optimization and local partnerships.
- Buy an Efficient HVAC System
Your guests need to be able to have their rooms as cool or as warm as they like, but that costs the hotel money. Hotels usually spend almost 50% of their budget on air conditioning. Investing in an efficient HVAC system could drastically reduce this cost while also saving energy and keeping your guests comfortable. - Digital Marketing.
Build a professional Internet business model. Improve Your Online Reviews. ...Create a digital marketing plan. ...Identify your target markets. ...Set a tone of voice and style for your brand. ... Invest in professional photography. Drive website traffic with SEO. Leverage the power of content marketing. Etc.
Thank you for your time, Look forward in discussing this further with you in person,
Best of life with light,
Christos Pashiardis. Senior Managing Partner
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