How To Increase Hotel Sales : Revenue Management Strategy

According to the latest performance reports, hotel market is experiencing exponential growth. So, you need to be prepared to respond to this positive change by equipping yourself with strategy to increase hotel revenue.

Hotel Revenue Management strategy should be such that it looks at business from both outside in and inside out angles. You need to focus on the tips given below to draft an excellent strategy.

Understand your market: Try to find out who exactly are your competitors and demand drivers as they will have a considerable impact on your revenue management strategy. Start from the basic aspects of when your business started including location demographics, corporate players, transport links, local development, seasonality, event demand, tour operators etc.

Armed with this information, you will be able to know target market, demand patterns, commercial opportunities and challenges. These you can address while designing your strategy.

Know your competition: Remember, your hotel strategy decisions and critical pricing are dependent on the performance of your hotel in comparison to your competitor hotels. You have to be ready for different competitor sets who are classified according to different seasons, mid-week vs. weekend, mid-scale hotel, 4-star hotel, immediate locale etc. For better preparedness, you can always hire a Consultant.

Act like a customer: Even if you have set a rational and strong pricing, you can’t convert potential customers, if they are not able to find you or book you. To know from a customer point of view, you need to think and book like a customer. So, its crucial how your hotel management strategy is seen and purchased by customers. You can find out this by conducting an online and mobile research. Design your strategy based on the results of the survey.

Know your product thoroughly: Your hotels revenue management strategy should be based on a thorough knowledge about your product. You might be having a great product but your competitors are also boasting of their products. So, take help of a Hospitality Management Consultant to make the most of your product.

Teamwork: You need to design an effective strategic approach keeping in mind all the areas like e-commerce, marketing, sales and distribution. This approach will make certain that the customer gets the right message.

Once you adhere to all these tips, you will always come up with a sound revenue management strategy for your hotel.

The Importance Of A Hotel Consultant

A hotel consultant will have the appropriate tools to automate different processes; this will not only save time, it will also save money.

A hotel consultant is a professional that can provide a new approach to our hotel, helping you to enhance certain aspects related to the team or to certain aspects of the organisation as a whole.

We will analyse this issue in depth so that you can learn about their duties in detail.

WHAT CAN THE PRESENCE OF A HOTEL CONSULTANT BRING TO US?

Capturing customers: They will be in charge of implementing different strategies that will help us to capture customers, as well as retain them. They will also segment the market in order to be able to identify the most predisposed profile to visit our complex.

Increased profitability: They will also study any type of aspect that is related to the hotel’s viability; including the management of payments, prices of services, appropriate hiring of staff, payment of taxes…

Positioning the brand on the Internet: The Internet is an important resource that will help the world to learn more about our hotel. For example, should we have a hotel in Lanzarote, we can position our page with the appropriate terms so that, when a customer wants to stay in that place, we will appear in the first positions. Given the importance of this aspect, the hotel consultant will have the appropriate knowledge needed to extend the brand throughout the network.

WHAT DOES A HOTEL CONSULTANT BRING TO A HOTEL?

In addition to all the aspects we have mentioned in the previous section, we will now see more specifically how having a hotel consultant can benefit us.

IDENTIFIES THE TECHNOLOGY THAT MOST SUITS THE BUSINESS

Computerisation is key in hotels; a suitable software must be used to manage employee payrolls, customer details, payments, supplier agreements, as well as any other related aspect.

As there is a high quantity of hotel software existing on the market, choosing the most suitable one for us is not an easy task; a hotel consultant will have the appropriate knowledge, based on the type of hotel and its needs, to choose the most suitable technology.

ADAPTATION TO THE MARKET

The truth is that the hotel sector is evolving at a very progressive rate, and it is very possible that your competition has overtaken you. Knowing how to go one step ahead will help us attract customers and strengthen the business.

A hotel consultant will be in tune with the latest changes; in this way, you can adapt to the market to achieve the best results.

BETTER TIME MANAGEMENT

The vast majority of hotels waste time doing some manual tasks that could be automated. A hotel consultant will have the right tools to automate different processes; this will not only save time, it will also save money.

For all of these reasons, hiring a hotel consultant may be the best decision of your life, something that really will keep the business afloat or simply improve profits.

Do You Want To Set Up a Hotel Project?

When You Choose To Set Up a Hotel or Restaurant Project, a Thousand And One Doubts Will Cross Your Mind. We Will Try To Make This Process Easier With This Computer Graphic We Have Drawn Up

At HRC we know how hard setting up a hotel or Restaurant project can be if you don’t have professional and qualified help. For this reason, with a simple computer graphic we have created, we want to show you how a hotel consultant can help you put together your hotel or restaurant project.

HRC will be glad to help you with your hotel or restaurant project whatever stage you are at. We can help you from choosing a site for building a hotel to helping you double the profits of an operational hotel.

8 Reasons Why Your Hotel or Restaurant Is Not Profitable

If your hotel or restaurant is not profitable, you will have to stop thinking about what you are doing wrong and try to find the error that is stopping you from moving forward. 

Why your hotel or restaurant is not profitable?

  • Errors in choosing staff: If you do not choose your staff correctly, the hotel may not run as you would expect. The staff searching methods or those related to a choice of profile may be incorrect. Before making a decision regarding the new person we are going to hire, we must think twice.
  • Not taking into account customer needs: The customer is everything, so we must always analyse their needs and determine how we are going to satisfy them. If the customer feels abandoned, it is likely that they will not hesitate in choosing a hotel chain that is competition to us.
  • Not monitoring online reviews regarding our hotel: Almost 9 out of every 10 people read online reviews about a hotel before deciding to stay there. If we do not monitor these, trying to learn from the negative reviews, we will soon be left without customers and not even know the reason for it.
  • Not knowing how to “sell” the hotel: The owner must know how to manage the hotel’s different sales channels, thoroughly analysing the potential of each channel, how to find the audience that best suits the business, how to segment this audience, monitor the competition, etc.
  • Dedicating too much time to administrative bureaucracy: Whilst it is true that a hotel’s paperworktakes too much time, it can never take up the time required by other processes (such as customer service). If this does take up too much time, we should hire someone to take care of it.
  • Not having the ability to solve problems: Running a hotel involves constantly identifying and solving problems. The manager must find a way of dealing with all of these problems before they get bigger.
  • Bad organisation in the command post: In each link of the employee chain, there must be people prepared with the right skills. If this is not the case, the entire chain will break.
  • Not hiring a hotel consultant: A hotel consultant will help you to consult the health of your business, establishing a strategy to resolve any problem that arises and the best ways to implement them. They have experience, a great work methodology, they adapt to new technologies and will give the hotel the attention it deserves. We must never see it as an expense, but rather an investment that will ensure us that everything will run as expected.

Avoid these errors and your hotel will run on the right track. If you need more information, please contact us.

How To Create A Hotel Business Plan

IF WE HAVE DOUBTS ABOUT HOW TO CREATE A HOTEL BUSINESS PLAN, THERE ARE SPECIALIST COMPANIES THAT CAN LEND US A HAND, ESPECIALLY WHEN DESIGNING A HOTEL.

A hotel business plan starts with a set of protocols and measures that need to be followed when launching, consolidating the business, attracting customers and, ultimately, so we know how to face any kind of problem that may arise in the future.

A HOTEL BUSINESS PLAN CAN BE USEFUL FOR

  • Knowing what to do if we experience feasibility problems.
  • Identifying all kinds of factors that can make our hotel profitable.
  • Gaining new investors with the aim of having the necessary funds when expanding the business.
  • Helping us know what kind of hotel we want to create, how to make ourselves stand out as competitors, and how to identify ourselves.
  • Being able to develop a marketing strategy (i.e. knowing how we are going to promote it).

PRELIMINARY ANALYSIS

The first step consists of studying all aspects associated with the hotel; whether there is enough demand to set it up, what kind of hotel it could be marketed as, what position other competitors are in and whether or not we can do anything to leave them behind.

A very important point during preliminary analysis is market segmentation.

The aim is to divide the target audience in to segments (i.e., gender, age, preference, etc.). This involves obtaining enough information to know what segment we are targeting. This means that if we are going to design a specific advertising campaign, for example, we will minimise costs and achieve better results.

WHAT ARE WE ARE GOING TO OFFER?

When we are clear on the previous point, it is crucial to know what we are going to offer, and how we are going to offer it. Remember that with a hotel, we are not just rendering a service, but also marketing various products.

It will be at this stage when we ask ourselves what we can offer our customer, whether it is attractive, what kind of approach we will use and above all, how much it will cost.

It is important to be realistic: we are not looking to create a business that we like, or one that would tempt us to use its services or buy its products, but one that our target audience may like, which, ultimately, is what will sell.

FORMING THE PLAN

Once we are clear on all of the previous stages, we will then be able to form the hotel design plan.

Thanks to the information that we have been compiling in the previous stages, we will be much clearer on the goals that we are going to meet, and how we are going to achieve them.

We will generally set both long- and short-term goals. They must be realistic, with an actual possibility of achieving them.

If we create an unrealistic hotel business plan, then we will be starting out with a dream that will only end up costing us money.

IMPLEMENTING A HOTEL DESIGN PLAN

The last stage of the hotel plan is carrying it out, logically. And how can we do this? Well, as a starting point, by using the protocols that we outlined in the first stage.

It is important to bear in mind that, although this plan should be the hotel’s foundations, it may be subject to change depending on how well it works. If it doesn’t help us to achieve the established results, we should already think about making changes.

Once the implementation stage is complete, your hotel will be fit to start out as the big business that you planned it to be.

Maximize Reservations

Long gone are the days of using a written diary for managing your bookings, with the tech takeover came digital reservation systems and the ability to integrate your business with various online platforms to maximise your booking capabilities. This is an important tool and one that few independent businesses are using to its full potential.

In order to get the most out of a reservation system hotels and restaurants need to be managing them effectively; achieving maximum yield, enabling table turns and collecting customer data for profiling and future marketing are pretty much the basics.

Hotels, particularly chain hotels, are excellent at managing reservations – they have entire front office teams dedicated to monitoring and reviewing occupancy, overbooking, and rates whilst constantly communicating with OTAs to market and fill their properties. Restaurants on the other hand tend to over look this area of the business, often not managing booking strategy correctly, thinking they can save on payroll and the reservation platform will do all the work for them.

The vast majority of the work is in the set up, choosing the right platform and calibrating it to fit around your style of business, it’s then vital to manage bookings session-by-session in advance to get the best results. One thing I find with restaurants is they tend to be over protective with their booking system, severely limiting their availability so they don’t “get slammed in the middle of service”. With so much competition in the restaurant industry today it’s important not to build this digital wall stopping customer bookings before you’ve even started. Best practice would be to maximise available occupancy, incorporate as many table turns as possible and increase the cap on group bookings, then proactively monitor inbound reservations and make guest contact or block out accordingly.

There are so many different brands of reservation system restaurants can use, and they all typically do the same thing in terms of managing the restaurant floor – it’s the additional support and services that should be considered when choosing which system is best for your business.

If you don’t require any extras and just need the restaurant floor managing, basic platforms are less expensive and will do the trick – try a few demos and get an easy to use interface you’re happy with. However if you want to up your game, and I recommend everybody should, choosing platforms with marketing and data capture facilities is the way forward. Business owners are usually put off using the marketing capabilities of these platforms to their full potential due to cover charges and commissions, if that’s you, try and put this to the back of your mind. It’s exactly the same as hotels filling their rooms using OTAs, these platforms have huge databases of diners and heavy traffic websites enabling them to market your business to a much larger target audience, giving you more brand awareness and ultimately increased sales.

Making the most out of your reservation platform’s digital marketing power and your profile on their website is key, but often overlooked, basics like listing your products and promotions will not only will increase awareness of your offering, it will boost your ranking on their website too, increasing the chance of users (particular mobile users in the local area) choosing to dine with you. Integration with third party platforms like Facebook, Tripadvisor or local influencer dining platforms should be taken advantage of to increase your brand’s footprint and the convenience of customer bookings.

Capturing data from your diners is a simple yet effective way of taking your reservation management to the next level – you need your team to be able to collect notes and information about your guests not just their contact details. Remembering favourite dishes, tables and dietary requirements are all ways to go that extra mile and impress your guests on their next visit… plus collecting their contact details will allow you to connect with your customer base when advertising new menus, products and events in future.

One last thing… no one’s stopping you having more than one reservation system, different platforms have various advantages, so get two and maximize your reservation capabilities via tech.