Revenue is the fuel pumping through your hotel operation’s financial engine. The higher your revenue per available room (RevPAR) is, the more resources you have to drive your hotel toward higher profit. However, that hotel revenue engine needs to be fine-tuned if you want it to carry your hotel to financial success.
That requires rock-solid hotel revenue management. With stronger hotel revenue management, you can pull in more cash, widen your revenue streams, and trim operations to turn revenue into profit.
Wondering how? In this article, we nail down the secrets to increasing RevPAR and improving your hotel’s revenue management.
Why Revenue Management and RevPAR Matters
Hoteliers are busy. Chances are, you don’t have extra time to dig into revenue streams, examine what’s driving RevPAR, and make constant tweaks to capitalize on the shifting market. Unfortunately, this high-level commitment to managing revenue and lifting RevPAR is critical to profit growth.
In-depth revenue management unlocks several advantages for hoteliers. Here are a few ways revenue management leads to more RevPAR:
- It helps you identify market trends and which revenue streams are in demand.
- By using competitor sets and reports, you can see what’s working and what isn’t.
- Experts can spot internal inefficiencies, see new revenue opportunities, and revamp operations for more profit.
- It allows you to clean up your tech stack for lower costs and higher returns.
- By focusing on data, you can build a revenue growth strategy that’s in-line with customer needs.
Simple Ways to Boost RevPAR with Revenue Management
Looking for a quick path to better revenue management and higher RevPAR? Here are a few ways to improve your hotel’s revenue management, increase RevPAR, and grow profit:
1. Up Your Reviews
Positive hotel reviews are critical to revenue growth because they have a massive influence on a visitor’s decision. In fact, four of every five travelers say they always or frequently check reviews before they book a stay. Plus, beyond directly influencing a customer’s decision, better online reviews lead to more organic growth and set the stage for your operation’s entire online reputation.
As you lift your organic influence, you can gradually rely less on online travel agencies (OTAs) that come with hefty fees. That means you can grow revenue on two fronts. First you attract more visitors. Second, you retain a higher percentage of booking sales by using more cost-effective channels.
Not sure where to start?
Here are a few ways to lift your reviews and set the table for more revenue:
Focus on Customer Service
In the hospitality industry, your visitor’s experience is essential. That means it’s worth it to spend extra time and resources on customer service both in person and online. And if you already have negative reviews online, there’s no need to panic. The best hotel brands will spend time responding to negative reviews with positive, authentic messages.
Line Expectations up with Reality
Another key to boosting reviews is setting realistic expectations. Try not to overpromise or underdeliver when you’re promoting your hotel.
Encourage Positive Reviews
You may be surprised at how many positive reviews you can secure by providing incentives to visitors or simply asking happy guests to leave a review upon checkout.
Build Out Your Social Media and Online Presence
As important as online reviews are, they need to fit into a fuller story about your hotel. That story is best told when you unify messages and spread them across social media, online content, and other online resources.
2. Enhance Your Room Offer
Another effective way to quickly grow revenue is to focus on guest experience, identify add-ons, and use market segments to set better rate levels and spark growth. Here are some assets to consider if you want to add value to your room offer:
- Executive lounges and loyalty program perks
- Extended stay or room upgrade options
- In-room amenities, such as Jacuzzis, balconies, and roomside views
- Flexible cancellations or last-minute booking change options
By adding more value to room offers, you can create pricing tiers that drive more revenue without requiring extra costs. Just remember, in order for hoteliers to use this strategy effectively, it takes a deep dive into hotel data. You’ll want to understand booking patterns, market trends, and the ins and outs of each segment to build a plan that fits your unique hotel demand.
3. Hire a Hotel Revenue Management Expert
Make no mistake, setting an effective hotel revenue plan requires expert analysis and a full-time commitment. Unfortunately, if you’re like most hoteliers, it’s hard to find extra time to master advanced hotel management software, dig into critical internal and external hotel market data, and craft a winning revenue plan. That’s why hiring a remote hotel revenue management team to drive growth has become such an increasingly popular choice in recent years.
Here are some ways hiring a hotel revenue management expert lightens your load and boosts profit:
Build a Better Online User Experience
If you pick the right remote revenue management experts, they’ll already know how to improve your guest’s online booking experience. That often includes building inviting content to pull potential customers in or using compelling images to emphasize your hotel’s best features.
Reduce Internal Labor Demand
In the hospitality industry, internal teams can get overloaded fast. When you use a remote hotel revenue management team to boost revenue, you can lift responsibilities off of those critical employees who are better off focusing on their specialty.
Lower Labor Costs
You probably already understand how big of an expense labor is for your operation. By treating labor as an investment and picking up a remote hotel management team, you focus resources in a direction that brings in more revenue.
Tap into Experts
By picking up a hotel revenue management team, you aren’t gambling with internal hires or taking on extra responsibilities yourself. Instead, you can unlock expertise from industry leaders who understand how to use all of the best revenue management software and tailor strategies to your hotel.
Adjust to a Shifting Market
The best remote revenue management teams will constantly dig into the numbers and adjust your revenue strategy daily to fit shifting demand. That prepares your hotel for unexpected market turns as well as more subtle changes in customer needs.
Want to Learn More About Remote Hotel Revenue Management?
There’s a lot riding on your hotel revenue management plan. Luckily, you don’t have to scramble for ways to increase RevPAR on your own. RevOptimum has long been known as the pioneer of remote hotel revenue management, and we’re here to work with your hotel one-on-one to build a revenue management plan that brings in more RevPAR.
Want to learn more about how RevOptimum and remote hotel revenue management works? Contact one of our revenue growth experts to learn how you can reach your hotel revenue goals.
About the Author
Scott Frothingham is the Founder and CEO of RevOptimum, which focuses on Hotel Revenue Management and Revenue Growth distressed Hotel Businesses. Scott is a pioneer of hotel revenue management and has increased more than $2Billion USD in hotel revenue.