Let’s face it; we all want to make more money. Most hotel owners are continually seeking ways they can increase their profit margin. The good news is that there are some simple techniques you can apply to do so. Read on for some great suggestions.
First and foremost, we have add-ons. By adding something to your consumers’ bookings, you can encourage them to purchase. This is something a lot of businesses do well in the hospitality industry. You need to consider your margins carefully to determine what is viable. Perhaps you could offer free breakfast with their stay, for example?
Think Beyond Hotel Rooms
To increase your profit margin, you should consider offering services that go above and beyond the hotel room. For example, you could give guests the ability to purchase tickets for nearby attractions from your front desk. Often you will get a commission for doing so. You can also arrange car rentals and make restaurant reservations. This can be an effective way to make more money, as guests want as much convenience as possible when they are on vacation.
Assess Your Energy Output
Are you spending too much money on energy at your hotel? Now could be the time to run an energy audit if you have not done so recently. This will tell you where you are overspending, and you may find that your provider can offer you a better deal, or that you should switch to a different provider. If you have not already made the switch to LED lights at your hotel, you should do so. These lights cost less to run than halogen lights, and they can last up to ten times longer too.
Encourage Guests To Refer New Customers
Put a referral program in place to encourage guests to refer new customers to your business. 65 per cent of new business comes from referrals. You could, for example, offer a percentage off your guests’ next booking if they refer someone to your hotel.
Who doesn’t love a special offer? Customers like to feel like they are getting a bargain, which is why special deals can be very enticing and lucrative. There are a whole host of special offers you can make the most of. For instance, you can reward loyal consumers with money off their next stay or a free treatment in your spa. Once someone vacates your hotel, send him or her an email with a percentage off their next booking. If they have had a great time, it’s likely they won’t be able to resist.
Last but not least, make the most of point-of-sale (PoS) opportunities. You can sell a number of tourist items, including key chains and postcards. You may even want to sell convenient products too, which you know your guests will need, for example, sun cream.