2017 Could Be Your Hotel’s Most Profitable Year Yet… Here’s How.

In Uncategorized by AlexK

Though it may be more fun attracting leisure and transient travellers, group and meeting business make up a substantially larger piece of the revenue pie for hotels. Often times, group and business events make up nearly 50% of a hotel’s revenue – that’s some serious cash! Most likely you’re already well aware of the revenue percentage your hotel receives from groups and meetings, but are you equally as aware of every ancillary income opportunity? Do you have the most profitable strategies and practices in place, that will help positively impact your bottom line? As we head into the new year, it’s imperative that your entire management team has the knowledge and tools in order to hit every revenue goal​ throughout the year. Heed the following advice and practices, and your hotel will likely even ​exceed​ all revenue goals for 2017.

Encourage More Than One Item in the Shopping Cart

Yes, it’s immensely important to do everything possible to secure as many events and group business opportunities as possible, but while doing so continue to promote every possible revenue channel available. Execute every event to perfection, but take notice if you’re missing out on any potential ancillary income opportunities.

When it comes to leisure travellers, it’s a no brainer to up-sell every possible non-included amenity. For some reason, though, it isn’t as routine for hotels to execute the same strategy for events. This is an easily solved problem – begin by taking note of all the ancillary income possibilities your hotel offers. All inclusive menus, spa services, upgraded rooms, extended stay opportunities, and so many more. Unlike leisure travellers, groups are more likely to stay on property, to utilise more of the hotels amenities. The individuals organising the event typically want everything streamlined and simple to execute, so the more you suggest as add-ons in the package, the better. Don’t miss out on an abundance of ancillary income simply from lack of trying.

If You Fail to Plan, You Can Plan on Failing

One of the quickest ways to lose hard-earned revenue is through a lack of planning and preparation. It can be challenging to navigate through the complexities of booking group events since the amount of rooms, food, etc can fluctuate. This isn’t always controllable on the hotel side, especially since it’s up to the event planner to collect the data of what’s needed and relay that information accordingly.

What you can control is your hotel and your management team, so take every measure available to set best practices for staying organised and focused on success. The better you plan, the higher your bottom line will be. Incentivise the planners, find ways to collect the data needed as soon as possible, and then update the appropriate departments. Work with your booking and online reservation solutions to streamline the process, as well as find ways to entice guests with shoulder dates stay opportunities.