6 Useful Tips on How to Increase Hotel Revenue in Low Season
6 Useful Tips on How to Increase Hotel Revenue in Low Season
Low season in the Hospitality industry is a major challenge for Hotel Owners and Revenue Managers as it impacts the cash flow of the hotel. The hotel industry is totally dependent on people’s desire to travel to specific locations. People are always willing to travel to learn new cultures, explore new cities, for business meetings, for Leisure travel or maybe for Pilgrimage.
But for every destination or location, there is a period of time every year where the urge to travel is less and hence is considered as Low season.
But with Revenue Management in place, it makes it much easier for hotels to anticipate the low season and price and market accordingly to generate maximum revenue during the low season.
Below are the few tactics to increase revenue in the low season.
1. Anticipate Low Season period
With historical trends and past data, hotels can easily identify the low season periods for their hotels. For e.g. many leisure hotels experience higher demands during weekends and holiday periods, but lower demand during the weekdays, with business hotels the opposite applies.
Hence, as seasonal low periods tend to be logical and follow the same patterns, it is easier to forecast and optimize the revenu
2. Offer Special Packages and Holiday Packages
Offering special and holiday packages during the low season period is one of the best ways to lure customers. You can expand your products via packaging, for e.g. Special Occasion Packages for accommodations and restaurants to encourage longer visits. When your guests stay at your hotel, the hotel can offer them additional discounts on Food & Soft Beverages or repeat discounts or referral coupons to attract more business in future. You can also tailor your marketing strategy to cover the minimum length of stay for slack season.
3. Reward your Loyal Customers
Hotels use Loyalty Programs to attract and drive customer loyalty. Hotels can offer discounted rates to their loyal customers to attract more demand during the low season period. Hotels can also collaborate with it with some other marketing strategy to attract more business.
4. Optimize your Marketing Strategy
Hotels should use your marketing strategy to optimize revenue of the hotels. Be specific on why a guest will choose our hotel over a competitor hotel and consider the Unique Selling Points, that may be location, service level, facilities. We can target a specific group of customers with our unique selling points.
5. Partner with Local Business/Travel Agents
Working in coordination with Travel Agents/Tour Operators can give hotels an upper hand in generating more revenue during low season. Travel agents locally can recommend our hotel to various groups of customers traveling for leisure, pilgrimages or business purposes. They can market hotels for their customer database, which can help hotels in low season.
6. Optimize Revenue with Up-selling.
When demands for rooms are low, hotels should use some up-selling tactics to generate more revenue. Upselling is the process of persuading a consumer to increase their current purchase’s price. With hotels this could mean persuading a guest to spend more by upgrading to a suite room, or by offering them a discount on Spa or Food & Soft Beverages.
Low season makes it difficult to increase the volume of booking, but with cross selling and upselling hotels can generate more revenue from existing guests.
Frequently Asked Questions
- Hotel room rentals, food and beverage sales, and conference space rentals all contribute to the bottom line.
- The months of November through March are often off-peak for hoteliers. The summer season, which runs from June through the end of August, is when attendance is at its highest. Everyone involved in the voyage has seasonal downturns. They significantly affect the income of institutions.
- There are only four methods for a firm to raise revenue: by luring new clients, raising prices, raising the average transaction size, and raising the number of transactions per client.