Providing superior accommodations is what hoteliers strive for when opening a hotel. But at the end of the day, running and filling a hotel is a business, and that means you need to sell the most rooms you can to be successful.
As you implement sales strategies to increase the profitability of your hotel, you may be exploring new methods to bring in guests and increase occupancy. There is no magic bullet to optimizing hotel revenue, but you may want to consider increasing your base business as the number one sales strategy on your list.
Your hotel needs base business to survive the ups and downs of the ever-fluctuating economy and to continue to rise above the competition. Here are a few of the benefits you will realize when you emphasize sales strategies designed to increase base business at your hotel.
Income You Can Count On.
Repeat business means money you can count on weekly, monthly, and yearly. Maybe your hotel has those perks every business traveler likes, such as outlets in multiple locations in the room or charging stations and luxurious bath amenities. Whatever the reason, customers return if they like what you have to offer. Monthly bookings by loyal customers allow you to plan on sales revenue coming in the door, which has a positive effect on your entire business.
Combat a Fluctuating Economy.
Your repeat customers will pay you regularly allowing your business improved cash flow. Also, repeat customers care about their reputation. Remember, you’ve already built the relationship. They care enough to make sure you are paid and paid on time. These are the customers you can count on.
Spend Less Time on Guest Administration.
Just like an old married couple, you begin to know how a repeat customer thinks, and what makes them happy. If this customer stays often and is part of the rewards program, you don’t have to spend time on the amenities that make them happy. The system data should already be in place so when this customer makes their reservation, it will trigger staff to do something to make their stay more enjoyable, like having bottled water delivered to their room. These systems are already in place, which means a time-saver for management.
Word-of-Mouth Referrals.
Consumer research shows that 89% of consumers are likely to use a business based on its online reviews. Build the ultimate experience for your customers and they will tell all their friends, colleagues, business partners, Facebook followers, and… you get the picture. If they like your hotel, they will refer everyone they know, and that is the easiest way to get new business.
Improved Insight into Guests’ Needs.
It always comes back to one keyword: communication. Train your team to communicate with guests to reduce errors and learn more about their travel needs. Learn to bond with your guests and strive to make sure each stay meets and exceeds their expectations. Gathering feedback shows that you listen to your guests and value their input. This leaves a positive impression which keeps them coming back to stay time and time again.
Overall, revenue can be increased by building your base business. It’s great to have your hotel full during the summer months, but you can’t make money booking four months out of the year. Building on your base business is what feeds the hotel and makes it profitable for the rest of the year.