There’s no question that due to the current COVID-19 pandemic, the hospitality industry has taken a generational smackdown. While some destinations around the country are positively reopening, others are not and a full recovery is as unknown as the daily-changing crisis. At NOISE, we know that revenue generation is king, now more than ever. The question is: do you have revenue generation strategies?
WHAT EXACTLY ARE REVENUE GENERATION STRATEGIES? Revenue generation isn’t just the domain marketing and sales, but a strategy that unites a brand’s entire organization. The goal is to bring all of departments together to create a plan that works best for your business model. Whether that’s lost revenue from bookings food and beverage, upsells, amenities or everything else, the sting from vacancy can be felt across many different departments — and having every department on the same page and involved in the same plan leaves zero room for a missed profitable opportunity.
WAYS TO ACCOMPLISH THIS. The goal is to maximize occupancy and based on our experience, hoteliers will want to be in a position where they can demand at minimum two-night stays at a profitable margin.
How to accomplish? One tactic is to offer added value — free or discounted on-site food and beverage, services and amenities, even apparel. Or, extend stays with built-in free overnights based on length of stay. An empty room doesn’t cost you much; an occupied room can create REVPAR via on-site purchases. Also consider relaxing company policies on cancellations and rescheduling options. Guests appreciate having options during these times, as all of us are uncertain about the futureTherefore, allowing guests to have the option to cancel a certain amount of time before their reservation or waiving certain fees would give them the security and comfort to reserve their booking now.
At NOISE, we have an algorithm that brands can use to save money while optimizing their costs for profit. So, what’s stopping you? Get in touch now and let’s flick on the No Vacancy sign today.