Maximize the Profitability of Your Hotel
Anyone who has worked in, with, or around the Hospitality Industry can tell you that it’s a fast-paced and often chaotic bonanza. Most days you might as well put on a firesuit and drag around a hose putting out fires. Finding the time and energy to juggle day-to-day tasks is difficult enough, but thinking of new and creative ways to increase revenue can put anyone out of their element. Taking the right steps for maximizing the profitability of your hotel can be an overwhelming proposition, but it doesn’t have to be.
A Dunk and a Lay-up are Both 2 Points
After spending 30+ years closely engaged with hotel owners, The Passport Group started to realize that most hotel owners fail at efforts to increase revenue consistently. After spending thousands with marketing firms, Groupon and Facebook contests, most of these efforts don’t support sustainable growth if they don’t miss the net all together. (AIRBALL!) As any gruff coach would tell you in high school, it’s all about the fundamentals. Let’s take a few minutes to explore both time-tested and cutting-edge ideas to ensure you’re maximizing your revenue potential:
Customer Service – It’s all About the Follow-Up
Everyone knows that exceptional customer service is the foundation of any great hotel, but few understand the true lifetime value of a customer that comes back and brings their friends. People recognize and reward top-notch customer service with positive reviews and referrals, leading to customer retention and repeat business. Staying consistently engaged with your customers through email surveys, engaging newsletters, social media can easily increase brand awareness and loyalty. Want your happy customers to tell their friends about you? Just ask!
Invest In Your Team
A dedicated, organized team of employees is the backbone of any successful organization. Investing in your employees is not only about giving fair wages/compensation for their work, but providing detailed training and opportunities to grow personally and professionally. Whether it be through classes, conferences, or online programs, employee investment is beneficial for long-term revenue growth. Both lead to an enthusiastic, proactive, and communicative workforce, ensuring a positive environment for guests. Happy employees equal happy guests!
Employ Modern Technologies
Do you provide speedy wifi in every hotel room or is there a line at the business center? Do the majority of your bookings take place online? Our life is dominated by information technology, as our world is ever increasingly driven by modern marvels. Digital access isn’t the only useful technological advancement for hotels: LED lights, renewable energy and energy-efficient appliances are all great ways of increasing the value of your hotel.
Offer Unique Amenities, Services, and/or Specials
You’re incredibly lucky or organized if you’ve never forgotten an important personal item while traveling. Every hotel supplies certain amenities and services for guests, such as personal hygiene products and room service, but the quality of some is better than others. Customers remember the little details and appreciate quality amenities. Providing services like pet boarding, entertainment, and valet parking can boost revenue and draw targeted clientele, thereby increasing potential revenue.
Form Strategic Partnerships with Nearby Businesses
Partnering with nearby businesses to offer specials and discounts can benefit all parties. Customers enjoy getting great deals, while hotels and nearby businesses profit from their partnerships, sustain revenue and garnering repeat business.
Maximizing the profitability of a hotel is about shifting your focus more towards increasing revenue than just decreasing costs. Just remember to focus on the fundamentals and engage your customers after they’ve walked out the door.
We’ve shown you 5 simple and effective ways to increase and sustain revenue for your hotel, and now it is up to you to employ them. Have any more ideas that have worked for your business? Let us know!