Non-Pricing Methods to Increase Profits
It can be extremely tempting to lower or increase your rates in hopes of selling more hotel rooms and increase profits, but this can be a slippery slope. Applying a lower rate to fill more rooms isn’t always the answer, nor is increasing prices to elevate profits.
Revenue management isn’t always just about pricing! So, instead think of implementing a few of these non-pricing methods to help increase profits.
Enforcing a minimum length of stay
Requiring a reservation be made for a particular amount of nights will help you get the most out of your busy season. The key here is putting this action into place well before your high-demand dates. This way the policy is set before the rooms fill up!
Create and advertise special packages
If your property offers services like a spa, golf, or a restaurant then it would benefit you to package them together with room accommodations. These deals will encourage guests to use services they may not otherwise have thought of using. It is also a great way to showcase everything you offer!
Develop a quality mailing list
Start to compile a list of your best weekend customers and stay in consistent contact with emails highlighting your current specials, packages, blogs etc. Even hint that mid-week is one of the best times to visit, without weekend crowds. Don’t be afraid to send them mid-week specials and packages, to entice them to book outside the busier weekends.
Effectively manage booking channels
If you are like most properties you utilize several different booking channels; direct-bookings, OTAs, walk-ins, and travel sites. Each one is different and each one needs managing! Learn what channels are the most profitable and which are the least. Depending on occupancy, it might be necessary to pull back availability on less profitable channels or boost efforts on a highly profitable channel.
To help manage your different booking channels consider RezStream’s Channel Manager, included in our Essential and Professional plans.
Host special events
If your property has space, you can increase bookings by marketing your venue for social events such as family reunions, birthdays, weddings, etc. It attracts people to stay with you when they otherwise may not have. Also, promote your space to local companies who might be able to use it for business meetings and other professional events.
At the end of the day, there are many ways to increase your property’s revenue, some of which include non-pricing methods. So, while it might be tempting to focus only on dynamic fluctuations in pricing, it’s just as important to implement some of these non-pricing methods to help increase profits and maximize your revenue potential.
While this is not a complete list of non-pricing methods to help increase profits, they are a great place to start! Effectively managing profits is a 24/7 job and to ensure you are doing the best you can it helps to have all the right tools available to you. See how RezStream can help grow and maximize your business and take the next step by inquiring about our pricing plans.