3 Straightforward Tips to Increase Your Hotel’s Revenue

You can’t depend on bookings alone. In the constantly evolving landscape of the hospitality industry, hotels typically face a number of challenges and unexpected situations. Competition in the business is extremely cutthroat due to the saturation within the field, making it difficult to stand out. To stay ahead of your competitors and build a business model that will help you endure unpredictable economic conditions you’ll have to start diversifying your revenue streams. Relying only on bookings doesn’t promise the same level of sustainability. Many experts in the industry agree that hotels can take notes from how airlines run their businesses, but still, hospitality figures don’t always do so. One method that airlines have adopted is expanding their ancillary revenue, i.e., revenue not derived from the business’s primary services. Just like hotels, airlines struggled to pull through the pandemic in 2020. The revenue made from ancillary methods shrank just like anything else, still, by the time 2021 rolled around their revenue increased over 13 percent to top $65.8 billion. These additional products and services ultimately made up more than 14 percent of the industry's revenue that year. It goes to show that even in excruciating circumstances ancillary revenue streams can help bolster your income. Adding new revenue opportunities to your business will increase your income, and those new features can also draw in additional guests and set you apart from other hotels in your area. So what are some products or services you can introduce? 1. Cater to traveling workers Remote workers and business travelers are becoming more common thanks to pandemic-spurred changes to the workforce. One simple way to cater to this demographic is to offer hourly rates or offer a 12-hour stay for a lower rate. A remote worker might find a private, quiet space extremely valuable even if they only need that space for a short time. Perhaps someone is traveling for business with a long layover and wants a cheap space to freshen up and relax before their next flight. They’re much more likely to rent out one of your rooms than the more expensive options in the area. If you have underutilized rooms or shared spaces, consider converting those rooms to smaller offices and conference rooms. Your guests could rent this space out for a quiet place they can retreat to for work. If you’re feeling up for it, you could offer these spaces to the general public too – opening up your potential clientele even further. These spaces will be even more enticing if you provide good lighting since remote workers often desire a professional space to take video calls. 2. Offer unique experiences Of course having common amenities like pools or spas can be a major draw for your hotel – but most guests won’t appreciate having to pay a fee to use your pool. Besides, most hotels have at least one of these features, so it might not make you as unique. Consider adding other experiences your guests can enjoy. Birch (once labeled as The Times Hotel of the Year) started offering art, jewelry-making, and fitness classes. These are things that you can set up yourself or even partner with local businesses to make it happen. The latter also gives you the opportunity for cross-promotion. 3. Open a store Sell the products you’re already purchasing! It’s no secret that hotel guests often like to smuggle soap, shampoos, or even towels and linen products after their stay. You can capitalize on that. You can buy a case of 288 travel-size shampoos for a little less than $50 dollars. That comes out to about 17¢ a bottle. On average, consumers often have to spend around $5 for travel-size shampoo products. Creating a small in-house store, even opening a site for it online, and listing the shampoos you’re already buying for $1, or just 50¢, can offer you an additional area of income. Such a cheap price is sure to entice your guests. If you provide robes, towels, or other linens that are pretty favorable in quality but at a relatively cheap expense, do the same with those! If you can sell them to your guests below the market average while still making a profit, then this could be a great path for you.

3 Straightforward Tips to Increase Your Hotel’s Revenue

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