Do you want to make the most of your hotel’s earning potential? While this might seem like a question with an exceedingly obvious answer, the ugly truth is that only a very few hotels do all they can, in order to maximize their revenue streams. This is partially due to the fact that many hotels and other accommodations are missing something very important: a revenue management strategy. Read on and get to know the most important hotel revenue generating ideas!
And more importantly, how can such a plan help you and your hotel? First off, hotel revenue - in other words hotel yield management strategies, are multi-faceted plans designed to help you maximize your accommodation’s potential. At the heart of these strategy there is flexibility and data: flexibility in using particular tactics in response to the shifting nature of consumer demand, and data to help you understand how travel habits vary. This knowledge can help you dynamically adjust prices, offer promotions, and take other actions in order to increase your revenue.
Naturally, one of the most important ways to increase hotel revenue is to ensure that potential guests know about your accommodations and can easily finalize a reservation. In the modern world, the vast majority of bookings are made online: therefore, it’s crucial for your hotel to have a strong online presence.
It is also important to feature your hotel on Online Travel Agency websites. An Online Travel Agency, or OTA, is a service that allows potential guests to browse a wide range of hotels and other types of accommodations, in order to find and compare properties quickly and easily. If you’ve ever used Booking.com, Expedia, Agoda, or Airbnb, just to name a few, then you should be familiar with how an OTA works. Based on the size, reach, and user-friendly interface of these sites, it's not surprising that OTAs could be the center of your online hotel revenue management strategy.
Connect with Online Travel Agencies is a simple way to reach those potential guest who otherwise would never have heard of your hotel, but they do carry downsides. Perhaps the most obvious one is that, in exchange for featuring your rooms on their site, OTAs charge a commission fee, which takes a cut out of your revenue.
Besides being featured on Online Travel Agencies’ sites, it is also important to work on maximizing direct bookings with the help of a booking engine software. The advantages of direct bookings are indisputable: the commission fee you would have payed for an OTA, is zero in this case.
With the right hotel management software, direct bookings can also help you generate additional revenue. For example, during the booking process, or even after the booking, you can offer special services, such as spa packages, city tours, transfer services etc. that your guests can easily add to their reservation.