Running a hospitality business like a hotel can be stressful. Seasonal peaks and slowdowns can be challenging, but there are ways to limit the negative revenue that comes during slow seasons.
There are some significant ways to limit negative revenue in the hospitality industry.
The first is to be more efficient in your administration and booking procedures. For example, when guests travel, they’re often tired and want to relax in their rooms immediately. Or, if they’re departing, there’s a heightened sense of anxiety and stress related to leaving, so making an efficient process of registering and paying will help ease your guest’s anxiety.
The way to give your guests a better experience includes improving your front desk operations by utilizing a POS system.
POS systems can enhance your guest experience but also raise your revenues. A good POS system can speed up payments, ease scheduling reservations, and customize revenue management to match your exact needs.
Future Bookings And Revenue Through Loyalty Programs
Even better, a POS system can help you with marketing for future revenue growth. And one of the most important features a POS system will allow you is the ability to create loyalty programs.
A loyalty program is when you get your guests to register and opt-in with you that rewards their return business in exchange for exclusive deals and discounts. The benefit of running a loyalty program with your hospitality business is that it can help eliminate the ups and downs, the ebb-and-flow to avoid the traditional slow season.
Benefits of installing a loyalty program include;
- Rewarding current repeat customers
- Reduce the slow seasons
- Reduce overhead costs
- Create mailing lists for retargeting your marketing efforts
- Boost profits
- Find new clients through referrals
- Improve brand recognition
- Get ahead of competitors
Repeat business is one of the most effective ways to raise revenue and increase revenue. Industry studies show that repeat customers are more accessible to sell to and spend more than new customers unfamiliar with your brand.
A loyalty program that provides exclusive rewards tends to enhance the guest’s experience, and a better experience lets you create opportunities for your guests to become brand ambassadors of your business. Loyal guests who feel an attraction to your brand will become some of your best referral partners.
Partnerships For Higher Bookings
Increasing your brand recognition and bookings includes using creative ways to find and attract guests.
Partnerships are another way you can increase your bookings, increase your revenue, and enhance your brand. Consider partnering with organizations and companies that can improve your guest’s experiences, but also consider partnerships outside the box.
Complimentary partnerships like adding a Starbucks or Peet’s Coffee in your lobby and rental car companies are two examples you can include with your business that makes a better guest experience. In addition, if you have discounts or exclusive deals with a loyalty program, you can double down on marketing opportunities.
You may consider partnering with a well-known celebrity chef to provide a restaurant option in your hotel or partnerships with outside local restaurants to provide incentivized deals for guests.
Another consideration is to find non-parallel partnerships. These can be with non-profits, music venues, sports teams, or other organizations that can boost your bookings in exchange for discounts and deals with your properties. In addition, you may consider youth sports leagues and teams that host significant events and gatherings as host hotels or opening and closing event spaces.
Some businesses partner with other hospitality industry professionals, such as airlines, to provide a location to stay overnight at a reduced price to the corporations that hire pilots, stewards, and other crew members.
Think outside the box about how your organization can pair with another to make a creative and mutually beneficial agreement that lowers your vacancy rates.
Hire Outside Event Organizers
Events and conferences are a great way to increase your revenues through additional bookings in the hospitality industry.
Every hospitality organization should have in-house event planners to handle events such as weddings and other significant life events. Still, you should consider partnering with an outside organization that will book your space and rooms on different days.
For example, you may consider an event planner specializing in trade shows, hosting conferences, and business seminars.
Real estate, medical, and financial services industries are great to target, and partnering with an event coordinator for business conferences will assist you in boosting your bookings.
Calendering and booking your space is the lifeblood of your business.
Utilizing the tools available to you, such as loyalty and marketing through a POS system, allows you to capture customer information for marking purposes.
Creating partnerships to boost brand recognition and room appointments and utilizing the skills of outside event planning agencies are great ways to decrease vacancies in your establishment.