Software

Smart Tactics for Maximizing Hotel Profits Year-Round

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Most hotels experience extreme changes in their occupancy rates throughout the year. While some periods are incredibly demanding, there are those referred to as the “off-season“. Needless to say, these fluctuations present high challenges when it comes to revenue management. It is relatively difficult to keep profits flowing when the rooms are unoccupied over long timeframes. Empty beds usually mean empty pockets. However, the best hotel operators understand that business is always ongoing, even in the most sluggish markets. The sharp business people then capitalize on these opportunities to ensure their bookings stay at the top during the slow periods. This guide therefore unpacks some of the proven strategies through which you can overcome the seasonal dip. This includes everything from collaboration to bridge the gaps to offering enthralling packages and extra services away. Enjoy this comprehensive list of the best methods of transforming your hotel’s low-season periods into profitable endeavors.

1. Maximize Revenue with Smart Software

While challenging, increasing profits in slower seasons is not impossible with the right technology tools. This is where asoftware revenue management system can utterly change the game for you. Essentially, an RMS is a piece of software that allows you to analyze historical data and current market conditions to set optimal room rates.

The software considers metrics about your hotel like occupancy levels, booking pace, market competition, seasonal factors influencing decisions, and others. However, today’s top revenue management platforms do much more than optimizing rates. Firstly, they have full lifecycle pricing, meaning they have opening dates for deeply discounted advanced reservations to quickly push for higher rates as arrival approaches. Pricing can be based on the remaining inventory or length-of-stay .

More advanced RMS offers more accelerated features like regret and deny data tracking. This enables you to reprogram open pricing whenever required to squeeze in more missed revenue opportunities. The most significant game-changer feature is your ability to automate rate management with the RMS.

2.  Get Festive With Special Events and Programming

This solution? Create your own demand by hosting unique, attention-grabbing events. With a little marketing creativity, you can establish your hotel as a destination during the shoulder season. Anything from holiday-related special programming to annual local festivities or trends will do the trick. A “Fright Nights” Halloween package complete with themed decorations and activities, or the Sparkling Wine & Holiday Shopping Escape for a quick festive escape.

Leverage the opportunity to couple booking incentives or group packages with your event calendar. A complimentary welcome drink, one-of-a-kind entertainment opportunities, dinner specials or demonstration series, meet-and-greets, and other activities are all possibilities.

Family-focused programming is another excellent strategy for the shoulder season. Staycation packages, summertime children’s programming, movies by the pool, Easter egg hunts, and other supervised experiences are all opportunities to entice area parents. Put your property on the map as the location for unique cultural experiences and tailor-made guest experiences.

3. Court the Corporate and Groups Market

Although leisure travel experiences a massive downturn during necessity periods, business continues year after year. That explains why it is smart to focus on the corporate meeting/groups market as an off-season complement. First, linkup with local professionals involved in event planning/procurement. Inform them of your ability to accommodate groups, be it a town hall, training session, or multi-day conference.

Create packages where guest rooms, meeting areas, meals, breakout sessions, and much more are divided into streamlined per-person fees. A sales explosion focused on your state’s largest employers, associations, and organizations will help you get your foot inside the door as well. Cities and Corporations can be at the top of your cv. Stress the benefits of having your conference at your hotel: more than one rendezvous point, group-friendly outdoor outings/team-builders, quickness and proximity, and specialty services are just a few examples.

4. Capitalize on Local and Regional Draw

Not every community is beat up by evil seasonal valleys. If your locale rates consistent year-round tourism, make the most of it! Craft marketing campaigns which tide over extra emphasis to your area highlights and proximity to popular attractions and landmarks. Work with local tourism boards and adjacent businesses on co-op promotions and cross-promotional offerings .

You could bundle packaged rates with tours, tasting experiences, event tickets, or local transportation. You could also provide local residents/workers exclusive staycation offers to drive incremental occupancy. Value-adds, including free parking, welcome gifts, food/beverage credits, and monthly promo codes, assist in leveraging hometown crowds.

Feeling super brave? Create highly targeted microsites focused exclusively on area happenings and insider information. Span local festivals, restaurant weeks, nature events, seasonal recreation, and other drivers. Offer visitors guides, real-time availability, and customized packages with seamless booking. Becoming deeply rooted in the local/regional scene is crucial here. You need to attract both visitors and natives to your hotel when there are nearby actions or rewards .

5. Flex Your Pricing with Dynamic Offers

Solid revenue management means never allowing yourself to take a discount rate. Dynamic, flexible pricing, and packaging ensure that there is no money left unearned because of unforgiving rates. Pricing should be determined by occupancy and how far in advance reservations are made. Handcuffing yourself to rigid rates isn’t doing you any favors. Stay on top of market conditions during the slow times. Be ready to adjust rapidly as occupancies and lead times waver week by week or month by month.

Don’t consign yourself to sticking to rates that are high and might discourage bookings. At the same time, offer specials that are limited-time additions in response to demand. Last-minute offerings are mobile bookers who are interested in frequently impromptu getaways. Throw in advance purchase deals and non-refundable rates for all those budget-conscious planners who are committed to their dates months out.  Mix “value-add” packaging that throws in items like resort credits, welcome gifts, parking, breakfast, and more. Include extras in the rate package that aren’t add-ons but can boost the value of the package.

6. Form Strategic Partnerships and Cross-Promotions

Don’t be afraid to join forces with other businesses and service providers either! Strategic partnerships can open up lucrative new revenue streams that pad occupancies year-round. * Start by identifying any complementary offerings or clientele that your off-season crowds would enjoy. Are you located near golf courses, performing arts theaters, outdoor outfitters, culinary tours, or wineries? Pitch those operators on mutually beneficial cross-promotional partnerships.

For example, you might offer special “Stay and Play” packages bundling tee times and room nights for visiting links enthusiasts. Or a “Dinner and Theater” promotion with prix fixe meals and discounted show tickets. Design reciprocal tee-ups so that each partner markets the other’s offers to their customer bases.

Conclusion

One of the key challenges when it comes to keeping your hotel humming profitably year-round is stabilizing revenue during the seasonal slump. However, that does not need to be the case. A revenue management system software can help you with a little strategic vision and outside-the-box thinking to prevent the slowdown now: identify demand opportunities and drivers that are unique to your local market and region.

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