2016 Could Be Your Hotel’s Most Profitable Year Yet… and Here is Why.

by / Friday, 18 December 2015 / Published in Blog, Hotel Financing, Hotel Revenue, Revenue Management
hotel meeting space

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.

Profitable Hotels

Encourage More Than One Item in the Shopping Cart

Yes, it’s immensely important to do everything possible to secure as many events and group business opportunities as possible, but while doing so continue to promote every possible revenue channel available. Execute every event to perfection, but take notice if you’re missing out on any potential ancillary income opportunities.

profitable hotelsWhen it comes to leisure travelers, it’s a no-brainer to upsell every possible non-included amenity. For some reason, though, it isn’t as routine for hotels to execute the same strategy for events. This is an easily solved problem, begin by taking note of all the ancillary income possibilities your hotel offers. All inclusive menus, spa services, upgraded rooms, extended stay opportunities, and so much more. Unlike leisure travelers, groups are more likely to stay on property, to utilize more of the hotel’s amenities. The individuals organizing the event typically want everything streamlined and simple to execute, so the more you suggest as add-ons in the package, the better. Don’t miss out on an abundance of ancillary income simply from lack of trying.

If You Fail to Plan, You Can Plan on Failing

One of the quickest ways to lose hard-earned revenue is a lack of planning and preparation. It can be challenging to navigate through the complexities of booking group events since a number of rooms, food, etc can fluctuate. This isn’t always controllable on the hotel side, especially since it’s up to the event planner to collect the data of what’s needed and relay that information accordingly.

hotel meeting spaceWhat you can control is your hotel and your management team, so take every measure available to set best practices for staying organized and focused on success. The better you plan, the higher your bottom line will be. Incentivize the planners, find ways to collect the data needed as soon as possible, and then update the appropriate departments. Work with your booking and online reservation solutions to streamline the process, as well as find ways to entice guests with shoulder dates stay opportunities.

It’s time to take your hotel to the next level. 2016 can and will be your best year yet, you will hit all of your budget goals, but you must be aware of every ancillary income opportunity, and you must be as organized and thorough as possible. Hotel management companies are experts at identifying missed opportunities and transforming operating procedures. Contact HMG Hospitality today, and get a jump start on improving your hotel for the new year. Make 2016 a record setting year!

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