Diversify its sources of revenue in the hotel business
8 Aug, 2019
As a source of additional income for hoteliers, the sale of additional products and services is a practice that is increasingly used in the hotel industry. The objective is to offer travellers paid services to improve their stay in order to increase the average ticket price. However, you should not charge for all services, as this could scare customers away. This sales technique must be used wisely. Several options can be put in place throughout the traveler’s purchase process to boost your income.
What products/services to offer?
In the hotel business, there are many services and products that the hotel operator can offer for a fee to make the stay of travellers more enjoyable. To help you, find a list of possibilities sorted by category.
- Catering: meals, drinks, minibar, snacks… Catering services are the most profitable in the hotel business Breakfast alone represents more than 50% of an establishment’s additional sales. It is therefore a service that can make a lot of money, but it is still necessary to determine the type of breakfast to offer.
- Transportation: this category includes taxi reservations, car or bike rental, shuttle buses between the hotel and the airport or limousine service. Leisure travellers are very fond of these services, which make their stay easier.
- Well-being: the aim is to offer massages and treatments to travellers. The hotelier can also offer access to the swimming pool and jacuzzi.
- Sport: this group brings together the sports facilities of an establishment. It depends on the available infrastructure (tennis court, weight training equipment). The hotelier can also offer sports courses supervised by professionals.
- Activities: this is the preferred category for leisure travellers. In search of experiences, they like to plan the activities of their stay in advance. Simplify their task by offering to book activities in addition to their accommodation. Wine tasting, tree climbing, parachute jumping… take advantage of the assets of your region.
Additional sales are a real gold mine for hoteliers. It is not a question of selling anything and everything to travellers. The hotelier must carry out a study of the profile of the travellers beforehand. There is no point in offering luxury services in a mid-range hotel. This results in additional costs for the hotelier without providing satisfaction to the traveller. This is why the hotel operator must identify the services likely to interest its target clientele A hotel that is used to welcoming leisure travellers can offer car rental to simplify their stay.
Another challenge for hoteliers is inventory management. Indeed, some services are limited in number, such as bicycle rental, while others have a use-by date, such as breakfast. The hotelier must therefore quantify additional sales in order to forecast the necessary stocks. A deficit deteriorates traveller satisfaction, while a surplus leads to unnecessary expenses and can create food waste. To help you manage inventories, don’t forget to update the availability of products and services on the reservation system.
Drive up additional sales
Once the hotelier has defined the services and products to be offered to its customers, it must think about a marketing strategy. Complementary sales can be made throughout the traveler’s purchase journey. Thus, all points of contact with the traveller must be identified in order to offer additional services at the right time. Online booking is the first opportunity. At the time of booking, the traveller is more inclined to consume because they are planning their stay.
However, it is during the traveller’s stay that the hotelier can maximize additional sales. Indeed, it is once there that the traveller will feel the need for certain services or products. The hotelier must therefore facilitate access to it. Faced with increasingly connected travellers, technology appears to be the solution. Thanks to the installation of connected tablets in the rooms or simply a mobile application, the traveller can find all the services offered. In a few clicks he can book a massage or order a bottle of champagne. No need to contact the reception, orders are directly recorded. The purchasing process is simplified while hotel staff can concentrate on welcoming guests.
Implementing strategies to increase up-selling represents an additional workload for the hotelier. Analysis of customer needs, inventory management, installation of digital solutions… All these tasks can be a real headache for the hotelier, but once implemented, they can pay off in the long term and effectively boost the turnover of a hotel establishment.
8 Aug, 2019
Did you like the article ? Share it!
More articles that might interest you
If you're wondering what the definition of a channel manager is, you're about to learn a lot more ab
I think we can all agree that nowadays you cannot do without online payments. The only justification
Whether you own an independent hotel, bed and breakfast or guesthouse, the channel manager is critic
Nowadays, the hotel industry needs to embrace technology to stay competitive and meet the demands of
There is no point in lying or ignoring the fact that a website is now an essential tool for securing
In the current digital era, businesses must accept online payments in order to remain competitive an
Hotels and OTAs—as well as B&Bs and, in general, all short-rental properties—have been best
In the Hospitality industry, going digital is no longer something that’s just nice to have. The ma
Marketing is a complex business, one of those things you never stop learning. This does not mean, ho