Peak Season Earns You 71% More than Off-Season – Let’s Keep That Revenue Up

As a hotel, your business slows during low travel periods. Here’s how to keep your profit from depleting.

While the peak tourist seasons bring a surge of guests and profit, the off-season can leave hotel owners with empty rooms and shrinking revenue.

Research from the Journal of Revenue and Pricing Management shows there’s a massive jump between peak and off-season. In fact, peak period revenue is 71 percent higher than the low season. Even metropolitan areas that aren’t consistent with that average can make about 28 percent more during peak than off-season.

However, you should know that the off-season doesn’t have to mean financial hardship. Before getting started, make sure you have a strong understanding of when your peak season begins to shift downwards so that you can be proactive and start taking steps before you reach your usual low point.

“Low seasons exert more pressure on hotels, as hoteliers need to decide on the best prices and room offerings to maintain a good balance,” researchers wrote. “Low prices may boom the demand, particularly in the low seasons.”

Tricks like lowering prices could sound counterintuitive at first, but it’s just one way to increase your low-season profit.

Seasonal pricing

By offering lower rates, you can attract a larger pool of budget-conscious travelers who might otherwise choose alternative accommodations or postpone their trips altogether. This ensures that you’re able to generate revenue during periods of lower demand, helping to cover various operational costs. More affordable pricing can increase occupancy rates and higher occupancy (even with those lower rates) can lead to increased revenue through ancillary services  like dining, spa treatments, and room upgrades.

Loyalty programs

Loyalty programs make your guests feel special and entice them to spend more money than they would otherwise. They’re designed  to reward repeat guests. During the off-season, when demand may be low, loyal customers can be convinced to return through exclusive offers, discounts, or bonus points, ensuring a more consistent flow of bookings. When provided discounts and exclusive offers, loyalty members are more likely to use additional services, and because you’ll have their contact information, it’ll be that much easier to present these discounts to them – no additional marketing fees necessary.

Early bird discounts

As mentioned before, preparing for the off-season ahead of time is essential. Early bird discounts help you do that by encouraging guests to book well in advance. They provide a predictable and steady stream of bookings, ultimately limiting the uncertainty that otherwise comes with the season. By offering these time-sensitive discounts, you can create a sense of urgency in potential guests. The opportunity to save money by booking early can motivate travelers who might have postponed their trips or chosen one of your competitors.

Organize events

Off-seasons often come because guests are less attracted to the area during certain times. Convince them that the money and time off are worth it by creating your own attractions. Special events like workshops or festivals can draw in guests during off-peak periods. Themed weekends like spa retreats, culinary classes, or outdoor exploration packages tailored to the season can offer unique experiences to potential guests.