Spring has sprung and summer is nearly here! What does that mean? It’s officially vacation season. This can be an abundant time for your hotel, as long as you know how to maximize on the tourist season.
What is one thing nearly all spring and summer travelers are looking forward to? Experiencing the local culture of wherever they’re visiting!
If you own or operate a hotel, you’ll be well acquainted with two main reasons for a hotel’s existence – to provide a comfortable environment for guests to stay in and to bring in revenue.
Successfully owning and operating a hotel is a rewarding experience, but it isn’t without challenges along the way. One of the biggest challenges posed to the hotel industry is waste. Waste gets in the way of both aforementioned goals – providing a comfortable environment for guests to stay in and to bring in revenue.
How can the hotel regularly renovate, update, and improve if the revenue used for that is being wasted? How can a hotel determine how much real revenue is being earned, if much of it is leaking out due to waste?
If waste is an issue in your hotel don’t worry! Waste can and will be stopped. Half the battle is simply being aware of the waste, after that it’s about finding each and every area of waste, and rectifying it. So, hoteliers, we’ve prepared three steps you can take to minimize waste in your hotel.
The beginning of fall is the perfect time to strategically plan how to maximize revenue through the end of the year. When the holidays start to roll around, people are much more inclined to spend, and hotels are a popular item to spend money on.
Especially in the midst of family gatherings, holiday parties and the like, it can be an absolutely gold rush of revenue if you are prepared. We want to help you finish out the year strong so we’ve compiled the following tips for your benefit:
Is your hotel in need of increase revenue from B2B business? We’re guessing yes.
Especially if your hotel’s revenue mostly comes from B2B, this isn’t true of all hotels, but it’s safe to say that B2B revenue typically makes up a large chunk of the revenue pie.
The question remains – how? Of course all hotels desire more B2B revenue, but how do they get it? Through a variety of methods, including, but not limited to, the following.
When it comes to hotel renovations, the term can be fairly vague at times. For our purposes we will be discussing major capital renovations. Meaning renovations that will increase the life of your asset.
Typically the purpose of a renovation is to strengthen, add or improve revenue streams, which can and will happen when the life of your asset is increased.
When it’s all said and done, we are always striving to increase the value of our hotels, and renovations are an excellent way to do so.
How often should your hotel be renovated? There is no perfect equation that will help you determine that, but keep in mind the fierce competition in the industry as well as constantly changing trends and technological advancements.
Of course, any renovation desired needs to bring a substantial return on the investment for it to be worth it, so as we suggest some renovations that may increase the value of your hotel, be sure to meet with your financial team to discuss what is realistic for your asset.
When it comes to revenue opportunities for a hotel, there are two main categories: Sales and Savings.
Both categories are useful and can be applied in different settings. Adopting strategies and implementing new tactics that save money by cutting back on a cost is very beneficial, and is more of a long-term strategy. Investing money up front, perhaps in some sort of product that can be sold, is also an excellent source of income for a hotel.
All too often the quick-pace of life gets in the way of taking the time to assess where more revenue might be saved or acquired, ultimately hurting a hotel’s bottom line.
We’ve compiled a quick list of some often overlooked revenue ideas for hotels from both categories. Ways to save revenue (thus increasing it over time), or to immediately increase revenue.
- Published in Hotel Revenue
Hotels are an integral part of our society. Utilized for leisure, business travel, conventions, special events, and a million other reasons. Folks use them everyday, they are depended upon, and generally enjoyed. On the flip side, there’s heavy competition in the industry, and a constant challenge to experience high levels of success as a hotel owner.
There are many variables at play when it comes to owning, managing, and operating a hotel, and it’s imperative that a keen eye is kept at all times. The industry is constantly changing and evolving, and a successful hotel must not only keep up with the changes, but transform ahead of them.
Constant evaluation of strategies and tactics is crucial. In order to achieve long-term success, a hotel owner must be able to balance, make decisions about, and produce results in all of the departments – finance, marketing, sales, catering, rooms, channel distribution, as well as overall management.
“A Goal Without a Plan is Just a Wish.” In the hospitality industry, wishes won’t get us very far. We work with goals, and goals require a plan. We spent a while detailing all the ways you can increase revenue through ancillary income for meetings and events in a previous blog. Selling ancillary items is
People venture into a restaurant to eat the food. People visit their fitness studios to workout. People travel to a hotel to sleep. If any one of those businesses simply relied on the purported “main service,” would they be profitable? Maybe somewhat, but not as much as they could be. Restaurants train team members on
Though it may be more fun attracting leisure and transient travelers, group and meeting business make up a substantially larger piece of the revenue pie for hotels. Often times, group and business events make up nearly 50% of a hotel’s revenue – that’s some serious cash! Most likely you’re already well aware of the revenue percentage your hotel receives from groups and meetings, but are you equally as aware of every ancillary income opportunity? Do you have the most profitable strategies and practices in place, that will help positively impact your bottom line? As we head into the new year, it’s imperative that your entire management team has the knowledge and tools in order to hit every revenue goal throughout the year. Heed the following advice and practices, and you will be one of the profitable hotels exceed all revenue goals for 2016.
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