Selling Unused Hotel Rooms

Proactively Selling Unused Hotel Rooms

November 21, 2023
Nathan Baws

Due to cancellations, no-shows, and unsold inventory, hotels inevitably have unused rooms, even on peak-demand nights. Rather than letting this revenue potential go to waste, visionary hoteliers implement strategies to sell these rooms by actively generating incremental demand. Taking a proactive approach to offering unused rooms at discounted rates has significant benefits.

How Can Selling Unused Hotel Rooms Help You?

Maximise Occupancy and Absorb Fixed Costs

Empty rooms represent lost revenue that can never be recouped. Any additional occupancy covering that room night's variable costs provides positive incremental income. Higher demand helps absorb hotel fixed costs and improves profitability.

Attract Price-Sensitive Market Segments

For Selling Unused Hotel Rooms, Specific guest segments like leisure travellers, families, locals, and younger demographics are more price-driven and willing to book last-minute deals. Attracting these groups with unused room promotions expands your audience reach.

Optimise Distribution Channel Mix

Selling Unused Hotel Rooms for flash sales on OTA channels or third-party discount sites lets you strategically segment distribution without compromising core rates.

Enhance Customer Satisfaction

Delighting guests with unexpected upgrades, discounts, or value-added surprises fosters goodwill, positive reviews, and repeat visits.  

Generate Ancillary Revenue

Once on the property, guests often utilise ancillary services like dining, spa, recreation, and more. This additional outlet revenue further improves profitability. 

Maintain Market Share During Slow Periods

Being aggressive with last-minute deals during seasonal dips or low-demand days maintains visibility and prevents losing share to competitors. Slow periods require more excellent promotion.

Facilitate Upselling

Once booked, guests taking advantage of unused room promotions can be upsold to upgraded accommodation types, packages, or bolt-on amenities to capture more significant spending.

Enrich Forecasting with Performance Data

Selling Unused Hotel Rooms and Monitoring the utilisation of unused room promotions provides valid demand data to enhance future forecasting precision and strategy optimisation.

Test New Offerings

Promoting unused inventory lets you experiment with new room types, packages, amenities, discounts, or partnerships without risk before rolling out more broadly. 

Build Your Customer Database

Capturing contact info and booking data for guests taking advantage of last-minute unused room deals expands your marketing database reach for future retargeting.

Enhance Competitive Intelligence

Analysing unused room promotions' utilisation and guest profile data provides intelligence on market demand patterns and competitor responses. 

Selling Unused Hotel Rooms

Critical Strategies to Proactively Selling Unused Hotel Rooms

To fully capitalise on benefits, hotels should take a strategic approach:

Forecast Cancellations

Use data to estimate no-show and cancellation rates by market segment. Build a utilisation buffer into overbooking levels.

Set Optimal Last-Minute Rates 

Leverage analytics to determine pricing thresholds by segment that maximise last-minute demand without cannibalising core bookings.

Promote via Targeted Channels

Promote deals through OTA flash sales, email campaigns, social ads, and other channels matching price-sensitive segment behaviours.

Train Staff to Upsell

Empower staff to upsell room upgrades, packages, and bolt-ons at check-in to capture incremental revenue from last-minute bookings.

Monitor Performance Closely

Analyse unused room utilisation data, guest profiles, and revenue capture to refine strategy continuously.

Rather than absorbing unused rooms' revenue, savvy hoteliers are actively Selling Unused Hotel Rooms through innovative, proactive promotions targeted to incremental demand segments. The added income directly improves profits and provides market intelligence to optimise more comprehensive pricing and marketing strategies.

Please schedule a consultation with our revenue management experts at Emersion Wellness today to discuss strategies for capitalising on excess inventory.

See Also: What to Include in Your Wellness Hotel Room to Increase Sales?

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