Improve Hotel Business

How to Improve Hotel Business?

December 28, 2023
Nathan Baws

Are you looking to take your hotel's bottom line to the next level? You can increase bookings, raise rates, and maximize revenue potential with the right strategies. Follow these proven tips to improve operational efficiency, delight guests, and watch profits soar.

Streamline Operations for Efficiency Gains to Improve Hotel Business

When your hotel runs like a well-oiled machine, you reduce waste and free up resources to focus on revenue-generating activities. Some ways to achieve operational excellence:

- Institute standard operating procedures to ensure consistency. Document guidelines for daily tasks like room cleaning so staff members are aligned.

- Invest in property management software to automate mundane administrative duties. Let technology handle guest reservations, housekeeping assignments, inventory management, and more.

- Cross-train employees so they can cover multiple roles. Having versatile team members prevents bottlenecks when someone calls in sick.

- Track key performance indicators like RevPAR (revenue per available room) to spot problems. Use data to find areas for improvement.

Deliver Top-Notch Guest Experiences to Improve Hotel Business

Satisfied guests drive repeat visits and positive word of mouth – two best ways to fill rooms long-term. Here are tips for wowing patrons:

- Greet guests promptly and courteously at check-in to make a great first impression. Thank them for choosing your property. 

- Anticipate needs with thoughtful touches like proactively leaving extra towels and bottled water in rooms.

- Address complaints immediately and resolve issues to guests' complete satisfaction. Empower staff to go above and beyond.

- Follow up with emails after stays to collect feedback. Monitor reviews on OTA sites as well.

- Reward loyalty! Recognize return visitors with perks like room upgrades, dining vouchers, late checkout, and more.

Improve Hotel Business

Optimize Distribution Channels to Improve Hotel Business

Getting your rooms in front of the right audience is critical. Evaluate distribution channels routinely to maximize exposure and bookings.

- Ensure listings on OTAs and your website are current with pricing, photos, and amenities. Disable dates as needed.

- Spot-check rates on OTAs to ensure price parity. Discrepancies erode trust and profit margins.

- Take professional images of guest rooms, event spaces, lobby, pool, and other areas to showcase your property online.

- Promote special offers and packages on your website with appealing copy and banners. Draw visitors in with deals.

- Invest in SEO to improve visibility for local searches. Target keywords travellers use when planning trips to your area.

Set Optimal Room Rates to Improve Hotel Business

Room rates have an outsized impact on RevPAR and overall revenue. Here are some tips for setting profitable prices:

- Use dynamic pricing to adjust rates based on demand, events, seasons, and other factors. Charge more when demand peaks.

- To justify slight premiums, watch competitors' prices and differentiate with value-adds like breakfast, Wi-Fi, parking, etc.

- Use data from past stays to establish baseline rates for each room category. Then, adjust up or down based on conditions.

- Offer discounted corporate rates for volume business travellers. Require contracted minimum stays in exchange for lower prices.

- When occupancy is low, run special deals and packages to fill rooms even at reduced rates. Some revenue is better than empty rooms!

Tap into Ancillary Revenue Opportunities

Rooms make up the bulk of revenue, but ancillary purchases like F&B, spa services, and retail generate incremental income.

- Upsell guests to superior room types during check-in/checkout interactions. Mention better views, more extensive square footage, etc.

- Spotlight outlets like restaurants and lounges via in-room marketing. Promote daily/weekly specials to drive patronage. 

- Bundle attractive packages, like "stay and dine" deals with dining credits or "spa getaway" offers that include treatments.

- Add options like mini-bar purchases, parking fees, pet cleaning charges, etc., to folios. Small extras boost the bottom line.

- Sell branded merchandise in lobby shops and online. Mugs, robes, pool towels and other items make great souvenirs.

Improve Hotel Business

Invest in Your Property

As with any asset, hotels require routine investments to uphold quality standards. Here are impactful upgrades to consider:

- Refresh soft goods like carpeting, drapes and furniture periodically to keep the property looking sharp. First impressions matter.

- Upgrade fitness centres, business centres and other amenities to meet guest expectations and attract demand.

- Renovate outdated or tired common areas like lobbies, restaurants and lounges. New decor and furnishings perk up the ambience.

- Evaluate infrastructure needs like HVAC systems, windows, roofs, etc. Fix issues before they disrupt operations or impact guest satisfaction.

- Install technology integrations that modern travellers expect, like keyless entry, high-speed Wi-Fi, streaming services, and mobile check-in.

Bottom Line

With strategic investments in your property and people, the payoff over time will be well worth it. Partner with hospitality experts like Emersion Wellness to tap revenue-boosting ideas tailored to your hotel's needs. Reach out today to schedule your free revenue assessment and start maximizing income.


 What are the best ways to increase hotel revenue?

Optimize pricing with dynamic rates, maximize occupancy even with deals when demand is low, generate ancillary income from F&B/spa/shops, upsell room types, offer loyalty perks, and invest in marketing/amenities to attract bookings.

 How can hotels improve customer satisfaction? 

Greet guests warmly, resolve complaints promptly, anticipate needs with thoughtful touches, regularly seek feedback, and reward loyalty with upgrades/special offers. Train staff in hospitality best practices.

 What hotel KPIs are most important?

Key performance indicators measured via surveys include RevPAR (revenue per available room), occupancy rate, ADR (average daily rate), and guest satisfaction score. Set goals for each and track routinely.

 How can hotels streamline operations?

Standardize processes, implement hotel PMS technology, cross-train staff for flexibility, set scheduling best practices, hold daily team huddles for alignment, and track KPIs to spot problems.

 Should hotels invest in capital improvements? 

Yes, periodically refreshing amenities, technology, infrastructure, and decor is essential to upholding quality standards that attract demand. Prioritize upgrades that modernize the guest experience.

 How can hotels optimize distribution?

Ensure listings and rates are current across all channels, focus on beautiful visual content, advertise deals/packages, optimize for local SEO, and encourage direct bookings with loyalty program perks.

 What ancillary revenue opportunities exist for hotels?

F&B outlets, spa services, retail shops, parking, pet fees, mini-bar purchases, room service, bundled packages, upgrades at check-in, and more. Look for ways to boost on-site spending.

 When should hotels offer discounts or deals?

Offer deals during seasons or days of the week when occupancy is typically low to incentivize bookings. Don't underprice during peak demand, though.

 How can hotels motivate staff?

Provide competitive wages, reward outstanding service, promote internally, recognize achievements, cultivate team spirit with celebrations and activities, listen to feedback, and offer development opportunities.

 What technologies help hotels drive revenue?

Dynamic pricing software, channel managers, integrated PMS systems, CRM platforms for capturing guest data, mobile check-in, keyless entry, revenue management tools, and more.

Contact us for more information.

Also See: How to Increase Bar Sales in Your Restaurant?

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