Hotel Revenue Management
The independent hotelier’s guide to generating stronger RevPar
As an independent hotelier you likely won’t have the sheer volume of resources that chains like Hilton and InterContinental have at their disposal. Robot butlers or Star Wars droids might be out of reach but, that doesn’t mean you don’t have options other than ‘increase rates’ when it comes to making more money and increasing your RevPar. If finding fresh new ways to maximise your occupancy rates and grow your room rates is feeling like an uphill battle, read on for a few ways you can shift your approach to hotel management and grow your RevPar as a result.
Drive incremental value
Your reservation engine doesn’t have to hum with 100 more bookings a day to generate a stronger RevPAR. It could be boosted with incremental value, with the same number of guests spending more, as a result of enriched service delivery and creative guest experiences.
One such example? The Little Nell in Aspen, Colorado. This 5-star, 5-Diamond Ski resort has a lot to recommend it. It’s ski in, ski out in a popular ski resort, a luxury accommodation option and offers award-winning food and fine dining.
While it’s loved by those wanting to enjoy the powder in the ultimate comfort, it’s also developed a cult following for its pets welcome policy. Not only are dogs welcome, they have their own hashtag on Instagram (#nelldogs), the bellman has been known to take canine residents walks while their humans hit the slopes and après ski and they are treated to dog-friendly gourmet breakfasts and beds.
You may not want to go to those lengths, but if your hotel revenue management services identify pet friendly status as being important to your guests, implementing and then marketing your pet friendly policy is a superb way to drive incremental value.
Man showing business graph on wood table
Rethink your add-ons
Every guest expects their room to have Wi-Fi and a flat screen but, if you can rethink your amenities and repackage certain services as extras on your reservation engine, the upsell will enhance both your guests’ experience and your own bottom line.
You could transform a regular stay into something that feels truly indulgent by offering an in-room massage, scented candles, pillow sprays, champagne and luxurious bath bombs, soaks or bubbles for example. One New York hotel calls this its bath ritual package. It makes a feature of the room’s standard tub but re-packages it as a luxurious ritual, adding bath bombs, wine and a take-home candle. While this is low effort for the hotel, it will cost guests an additional fee when they get to the reservation engine.
If your hotel revenue management services tell you this wouldn’t align with your own clientele’s expectations and tastes, the idea can easily be adapted and rolled out throughout your hotel. You could offer a movie night package for example, with popcorn, sodas and a choice of movies, a cocktail making class with your head bartender or even a cooking class with your head chef. Pod Hotels in New York offer a free walking tour of their neighbourhood led by their concierge.
The sky is the limit – the key is being creative and figuring out how your own hotel can offer its guests an exceptional experience.