The hotel sector is optimistic about revenue and occupancy in 2022–2023, thanks to a strong first quarter. ICRA data shows that during the quarter, occupancy rates in India’s premium hotels ranged from 56% to 58%, up from 40% to 42% in FY22 and not far from the pre-COVID-19 occupancy of 60% to 62% in Q1FY20. The Pan-India hotel occupancy will be 68-70% for FY2023.
Hotel owners are making efforts to boost profits post-COVID-19. Others are turning to tried-and-true methods that have reduced the pain of recessions in the past, while some are looking for new creative ways to help their bottom lines.
Keeping hotel occupancy rates at an optimum level always is good for your hotel. This helps you boost hotel revenue and stay profitable in the long run. Revnomix is proud to provide services to hundreds of hospitality firms globally like Sula, Hyatt, The Leela, and more. But before we dive into the best strategies to increase hotel occupancy rates, let’s take a look at why it is crucial.
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Why is it Vital to Increase Hotel Occupancy Rates?
The hotel Occupancy Rate is an important metric to determine the overall health of your hospitality business. Occupancy rate is the percentage of rooms occupied at a property at a given time. It can be calculated by dividing the total number of rooms available, by the total number of rooms in use.
Hotels are always trying to stay ahead of the competition by increasing occupancy rates and attracting more guests. To do so, they need to keep up with the latest trends in travel and implement innovations that encourage patrons to book their hotels.
They also need to foster a culture that is friendly, welcoming, and inclusive. This way, they will be able to retain their customers who choose their hotels based on these factors.
This is why it is important for hotels to increase occupancy rates – it’s the only way for them to make sure they are able to get ahead of the competition without having to compromise on quality or customer service.
Best Strategies to Boost Hotel Occupancy Rates
Hotel occupancy rates are essential to the health of a hotel’s income. A high occupancy rate indicates that there are guests staying in the hotel, which means more revenue for the hotel. However, it is not easy for hotels to increase their occupancy dynamic rates. To get an idea of what might be working for other hotels, one must look at how they have done it.
How revenue is calculated? It is calculated by multiplying the number of units sold by the selling price. This article discusses strategies that have been successful in increasing hotel occupancy rates, including meeting consumers’ demand through new concepts and creating new experiences for guests.
1. Add Value with Hotel Promotions & Packages
Special packages and promotions by Intercontinental in Chennai.
Image credit – ihg
Hotels must find a way to compete in the crowded vacation market. They have been trying different marketing strategies to increase their hotel occupancy rates. One strategy they have been using is creating packages and promotions.
These packages and promotions offer guests many discounts to entice them to stay at the hotel for an extended period of time or to travel during the off-season season. Packages that include the hotel’s free services not only facilitate guests’ usage of them but also create a competitive advantage in customer retention.
2. Provide Loyalty Discounts
Marriott Bonvoy loyalty program.
Image credit – business2community
Hotels are no longer just a place for people to sleep, but also a place for socializing, dining, and even work. For that reason, hotels are investing in their marketing to entice guests to stay more often. One of the most effective marketing tactics is providing discounts for loyalty programs.
Loyalty discounts are a proven method of increasing customer retention, revenue, and ultimately hotel occupancy rates. By offering discounts on the rate booked online, customers are more likely to stay at your hotel longer.
Many hotels and resorts offer loyalty discounts to their guests on their birthdays and anniversary dates. The perks can boost your hotel’s customer satisfaction and service quality and revitalize your revenue streams at the same time.
3. Invest in Guest Services & Staff Training
Guest services are the key to increasing hotel occupancy rates. Experts have discovered that training their staff in customer-centric practices can lead to a 15% increase in hotel occupancy rates. Guest service includes everything from responding quickly to guest requests, providing exceptional service, and building genuine relationships with guests.
Why staff training is important? Training your staff is a long-term investment that can help any hotel increase its occupancy rate and profits. It is important for hotels to provide staff with comprehensive training programs to create a sense of cohesiveness and encourage teamwork.
4. Focus on Repeat Customers
Repeat guests are the lifeblood of any business. This is because they are more likely to come back, spend more money on their stay, and return for future visits. Hotels that offer experiences that guests want are more likely to have repeat customers.
Guests who have chosen to stay at your hotel in the past are easy to market to than those who have never taken time out of their day to hear about you. This is why hotels need to focus on repeat guests and create an experience that they’ll want to come back for.
5. Work with a Revenue Manager
A skilled revenue manager with access to historical hotel data and business intelligence can assess how guests behave and recommend strategic advice such as adjusting room rates to fill vacancies. A revenue manager who is experienced in executing marketing strategies can help turn your hotel occupancy rates around.
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With the help of a hotel revenue management company in India, you’ll be able to get your target audience with offers that will drive conversions and maximize revenue. You’ll be able to track customer acquisition and conversion rates, target maximum conversions for each business function, and maximize the effectiveness of your marketing campaigns. Looking for a hotel marketing company in India that provides revenue management strategies? Check our Trustpilot Reviews.
6. Give In-demand Hotel Amenities
Hotel amenities are facilities that all hotels provide to their guests for enriching their experience during their stay.
Image credit – ezeeabsolute
Demand for hotel amenities varies just like it does for locations. Look at your rates for many amenities you provide to get a better idea of how demand for them changes over time. Increase high-demand amenities in your sales and marketing messages and create special packages for low-demand amenities to attract guests.
Change your offerings if you find that some amenities are asked about by guests a lot, either in reviews for your hotel or reviews for other nearby hotels. Like by being the hotel that welcomes families, you can attract a new audience segment if many reviews in the area mention the absence of highchairs and cribs. You can find ways to boost demand and increase hotel occupancy rates by knowing what your guests want.
7. Use Dynamic Pricing Strategy
Dynamic pricing optimization is the main feature of a revenue management strategy.
Image credit – sunrisecentralhotel
No matter what kind of hotel you have, you should review your hotel pricing strategies and occupancy forecasts. You should be able to adjust to the changing market conditions because demand is always changing. Here, dynamic pricing strategies can be useful.
The practice of using flexible pricing for a hotel room or service based on market demand is known as dynamic pricing in the hotel industry. The basic idea behind dynamic pricing hotels in revenue management is that the price of a hotel room will be set by demand and supply. It means room rates should be raised when demand is more than supply to maximize ADR and decreased when demand is low to increase hotel occupancy rates.
Are you searching for a leading revenue management software? Click below.
Revseed – Best Dynamic Pricing Software
8. Manage your Online Reputation
Customer reviews are important.
Image credit – platformvn
Guest decisions about where to stay are influenced by your online reputation like reviews, search results, social posts, local press, and more. You have little control over your online reputation, but there are some things you can do to engage with guests so they can see you in a positive way.
You can start by giving a quick response to all negative online reviews and offer ideas to improve personalized communication with guests. You can show top team members, recent hotel advances, and more on your website, social media, etc. That way, you’ll be more likely to increase hotel occupancy rates during times of low demand by enhancing your hotel’s online reputation.
9. Organize Engaging Events
Wow! Hospitality Trends Summit held at Radisson Blu Plaza in Delhi.
Image credit – industryevents
Even in the off-season, events bring in huge revenue for hotels. Each event also offers a chance to upsell additional hotel amenities like rooms, dining options, and spa services. Check the area for all local events like concerts, parties, fairs, comedy shows, marathons, and more. This will draw guests from all over.
You could partner with the event sponsors and set up special promotions that would imply a hotel booking with discount for anyone attending or taking part in the event as well. You will benefit from great marketing opportunities as a result and increased hotel occupancy rates.
10. Attract Group Business
Intimate hotel packages for wedding – The Leela, Goa.
Image credit – weddingz
Depending on your hotel, you might draw large groups who prefer to make bookings at bigger hotels or smaller groups seeking a more personalized experience. Many couples choose to have intimate weddings with fewer than 30 guests. To show off the potential of your hotel, use images from previous occasions. You can create packages as well tailored to family reunions with special menus and reduced room rates.
You can connect your hotel to a global distribution system (GDS) that will put your hotel inventory in front of business travelers and their booking partners for large corporate events and much more.
11. Partner with Other Brands
IHG club members can earn 3X Skywards Miles when they book a stay at any IHG Hotels & Resorts worldwide.
Image credit – ihgplc
An amazing way to increase hotel occupancy rates and revenue is by creating strong relationships with other brands. Start by exploring brands to see who might profit from co-marketing with your hotel. Many firms like airlines, small travel agencies, tour operators, conference centers, schools, and more, can refer your hotel to visitors. A deal where they promote your hotel in exchange for a fee might be possible.
Next, improve the package deals offered by your hotel. You could promote ties with airlines, and tour operators and offer add-ons. New upselling options may result from creating packages with these brands.
12. Adjust to Seasonal Demand
Peak season is the time of the year when revenue is recognized at the highest level.
Image credit – axisrooms
Learn what drives your hotel during the peak season and take advantage of it. Like why not recreate the monsoon feel during the off-season if your hotel experiences a high season each year due to the monsoon? Create a monsoon theme and include a rain dance in your package to make it more appealing.
Offer happy hours and pool parties during the monsoon if your beachfront hotel doesn’t draw many guests then. If you view the summer as your slow season, plan rain dance activities in your hotel to combat the summertime blues.
Market these packages in an exclusive way to make guests feel privileged. Show your hotel as off-season friendly through social posts, remarketing ads on Facebook, etc. You can entice them as well by talking about the many other benefits they would receive during the off-season like cheap airfare, exclusive discounts, etc.
How Hotel Occupancy Rates & Other Factors Increase Revenue?
Direct Booking is one of the most vital factors for revenue optimization.
Image credit – hotelogix
You can increase revenue by adopting modern technologies in the hospitality industry. Here are four ways that hotels can increase their revenues by embracing innovation.
Increase occupancy rates – A recent study shows that in 2022, the hotel occupancy rates in India were estimated to be 66%. High occupancy rates indicate that there is a lot of demand for rooms in the hotel & guests are pleased with the facilities. Hotels can boost occupancy rates by using technology like online booking apps and offering discounts to lock in customers.
Increase hotel prices – Hotels could raise their room prices now that the demand for travel is high and the price is somewhat stable. They could also take advantage of current market trends like Airbnb’s rise to offer cheaper alternatives for travelers who want to stay in a room with a view or other unique features like a Jacuzzi tub or outdoor patio.
Offer special promotions – Many hotels offer package deals and promotions to help grow their revenue. One of the best ways to build a brand is through customer value experiences. Therefore, promotions are a great way to entice new customers and can be a cost-effective marketing tactic. Hotels could offer discounts on bookings made through their website, email promotions, or social media posts.
Encourage direct bookings – OTA platforms are useful for comparison, booking, and promoting your hotel. However, high commissions charged on each booking mean that it’s important to bring in as many direct bookings as possible to make sure your hotel doesn’t lose out too much money. They allow you to decide the rate and ensure that you receive payment for each one. The more direct bookings, the more money you make.
5 Ways to Increase Hotel Occupancy Rates Using Tech
By using automation in their hotel, hotel owners can provide profound benefits to their guests.
Image credit – hospitalitynet
A tech-driven hotel is a smart hotel that is able to provide a better experience to its guests. It can help you boost hotel occupancy rates and revenue. Here are five strategies on how tech can help your hotel grow.
1. Create a direct booking engine: It can be done with the help of an online website or with the help of customer service software.
2. Implement automation solutions: This will give your hotel time and financial benefits when you use it for operations such as order, inventory, and pricing management.
3. Expand into new markets: Tech in hotels has become more affordable lately and this has helped many hotel owners develop their businesses in new markets like Europe, Asia, and South America.
4. Invest in technology for your employees: Modern tech makes life easy for your staff by improving their tasks like checking in guests, cleaning rooms, or taking care of maintenance operations.
5. Get more people talking about your hotel: Use digital marketing and tech to build your customer base. Engage with customers through personalized email marketing types, live chat, and social media marketing. Why social media marketing is important? It helps hotels to connect with their customers and increase brand awareness.
Also, Read – Guide to Hiring a Revenue Management Service Provider for Your Hotel
How Revnomix Can Help Boost Hotel Occupancy Rates
Making a decision about outsourcing total revenue management should not be taken lightly. The rewards can be substantial. It is crucial to create your short, medium, and long-term revenue management plan to boost your hotel occupancy rates and revenues. What is revenue management in hotels? It allows hotel owners to forecast demand and optimize availability and pricing to achieve best financial results.
If you haven’t yet taken full advantage of the power of revenue management in the hospitality industry or if you have taken the wrong approach, you may not be able to maximize your ROI, both in the short-term when demand is high and in the long-term when it could provide you with a competitive edge.
The custom solutions by Revnomix are the answers to all your challenges. We recognize the challenges that your hotel has to face every day and complex market conditions. This helps us to deliver unique solutions to your problems by applying the Science of Revenue Analytics & Economics. We use the most advanced tools, processes, and tech that is not available to a lot of hotels.
Do you want to maximize revenue? Do you want to try a hotel management consulting firm for the revenue management concept? Contact Revnomix – one of the leading hotel revenue management companies in India.
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Top 12 Strategies to Boost Hotel Occupancy Rates & Revenue
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Keeping hotel occupancy rates at an optimum level boosts revenue. Revnomix provides revenue management solutions to hotels like Hyatt, The Leela, etc. globally
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Revnomix Solutions
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