Tips for Boosting Hotel Revenue During Slow Seasons:
The notion that low season revenue is an inevitable aspect of the hotel industry has been widely accepted for a long time. Low season periods are typically characterized by decreased demand, resulting in lower revenues for hotels. However, the hotel industry has undergone significant changes in a relatively short period of time, and hotels no longer need to accept slow business as an inevitable consequence of low season periods.
With a proactive approach and the implementation of tried-and-tested tactics, hotels can thrive during traditionally slow low season periods too.
Following are few practices which would keep you on your toes during so called Low season and increase revenue during low demand days.
It is common for hotels to simply accept the peaks and troughs of high and low season periods and resign themselves to slower business during low season. However, this reactive approach is not necessary. Through proactive strategic planning, hotels can achieve significant success during low season periods, regardless of their property type or level of seasonality.
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Forecast Low Hotel Occupancy Periods With Precision:
Accurately forecasting low hotel occupancy periods is a crucial foundational step that provides a clear understanding of accounts receivable and payable during these periods. This information helps management better prepare for performance control across various hotel divisions, execute business objectives, and plan overall operations.
By precisely forecasting low occupancy periods, hotels can better plan and allocate resources to address the challenges posed by low occupancy. This preparation is essential for enacting initiatives to reverse and counteract the negative trends associated with low occupancy rates.
Ultimately, accurate forecasting provides the necessary insights to make informed decisions about pricing strategies, promotions, and other revenue management tactics to attract more customers and increase occupancy rates during slow periods.
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Implement an Active Marketing Campaign to Reach New Customer Segments
During low season, it’s an excellent opportunity to expand your target customer segments beyond your usual one or two buyer personas. By analyzing your own customer data and communicating with them, you can discover new trends, needs, and wants.
Go Beyond Corporate, Leisure ..
Beyond the traditional business-leisure dichotomy, there are niche markets such as millennials, generations Z and X, wellness travelers, Leisure travelers ( Those who mix business and leisure), Empty nesters ( who are on the verge of retirement and so have much more free time) , pet owners, and families traveling with kids. Understanding these groups’ unique requirements can help you create tailor-made offers that appeal to them.
Target Both Residential and Non Res. Groups.
Serving both guests and non-guests, you can generate more revenue during the low season by offering team-building retreats, corporate meetings and events, coworking spaces, and weddings. These can all be outstanding sources of unbudgeted revenue. Since you already have data of your past guests, you may try targeting them to announce such action.
Geo Specific Targeting.
Thanks to technology, you can now geo-specifically target particular groups in marketing campaigns, such as targeting potential customers from Western region during summers and Northern during winter season.
How About Targeting Senior Citizens or Kids…
To appeal to different age groups, it’s essential to offer specific services that cater to their needs, like offering long-stay packages to retirees and improving access points and staff training for elderly guests. ou can source social media and communication campaign data from your guests themselves, which can help you attract future guests.
Comprehensive Targeting :
To create a comprehensive targeting plan, you need to identify the groups you want to target and use various online platforms, such as Facebook, Instagram, Google search, Pinterest, and your website, to advertise and post organic content.
Combining these approaches with email campaigns, promotions, and periodic newsletters can help drive business.
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Do The Things Differently
Before contemplating reducing your prices, it might be worth considering the following thoughts.
Packages:
One way to attract potential guests and encourage repeat visits is by introducing new activities and experiences at your hotel. You can promote these offerings through various channels such as blog posts, social media, and direct communication with former guests.
It’s also important to feature them prominently on your main website Another option is to partner with local businesses that offer complementary services, such as museums or famous gift shops, to create attractive packages for guests.
By working together, you can offer a more comprehensive and appealing experience for visitors, which can ultimately help to boost your hotel’s revenue.
Make Your Guests, Your Partners:
Implementing a loyalty card program can be a great way to encourage repeat business and build customer loyalty. By offering rewards and discounts to frequent visitors, you can incentivize them to continue choosing your hotel over others. Some examples of incentives you might include on a loyalty card program include a free drink at the bar on their next visit, a welcome gift upon arrival, or a discount on their next stay. These types of rewards can help to create a positive association with your hotel in the minds of guests, making them more likely to choose your establishment for future trips. Additionally, loyalty card programs can be an effective way to collect customer data, which can be used to personalize future marketing efforts and improve the overall guest experience.
Best Available Rates:
Lowering prices can be an effective strategy for competing with rivals and attracting cost-conscious customers who may not be able to afford your hotel during peak season.
However, it’s important to be mindful of your brand image and reputation when setting prices, as excessively discounted rates can damage your image.
While discounts can be a powerful tool, they may not always be the best solution. You can leverage the advantages of traveling during the hotel’s low season, such as lower travel costs and fewer tourists, to attract customers. Nonetheless, it’s crucial to ensure that your offers are carefully planned and don’t appear haphazardly put together solely to attract customers.
It’s essential to track, optimize, and critically reflect on any revenue management strategy to ensure its success.
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Revitalize Your Hotel Operations and Processes.
Low season presents the perfect opportunity to provide essential revenue-generating strategy training for staff.
During low season, it’s crucial to train staff on revenue-generating strategies. Client-facing employees require role-specific training tailored to their areas of expertise. For example, front desk employees can benefit from best-practice training on promoting booking upgrades, while bar and restaurant staff can benefit from education on product cross-selling and upselling.
To take charge of your guest experience and review score, it’s essential to actively encourage feedback and reviews during low season. Additionally, conducting a thorough review of the customer journey can identify areas where your service may be lacking. It’s crucial to maintain an objective point of view during this review process.
Low season is also an excellent time to carry out “spring cleaning” for your hotel. This may involve updating your website, branding, and social media accounts, as well as collecting feedback from guests and staff. Focus on areas where service has fallen short of expectations to improve your hotel’s overall performance.
Its All About How You Think
By implementing proactive measures, hotels can optimize their revenue management strategies, such as adjusting pricing and promotions, creating new packages, and enhancing their marketing efforts. Hotels can focus on improving guest experiences and providing value-added services to attract more customers and increase guest loyalty.
Through proactive strategic planning, hotels can transform low season periods into opportunities to increase revenue and improve profitability. By adopting a proactive approach, hotels can better compete in the market and achieve sustained success throughout the year.
Bring In Experts … Let’s Go GoQ
Piyush Bhatnagar II Director-Strategic Alliance II 3Q Progressive Alliance