Increasing hotel occupancy is always a challenge for hoteliers. It’s very tempting to slash the room rates to increase hotel occupancy in an attempt to increase hotel revenue. But in the long run, it is not an effective strategy as it may sell a few rooms, but not enough to offset the reduced revenue. Here are 7 strategies that can help you increase hotel room occupancy.
- Adopt dynamic pricing
Rather than lowering your price to attract guests, and increase occupancy, adopt a dynamic pricing strategy using hotel revenue management software. This software automatically offers higher discounts when occupancy is low. Likewise, it has a mechanism in place to offer lower discounts or no discounts when the occupancy is on the higher side.
2. Leverage the power of OTAs & metasearch engines
OTAs and metasearch engines play an important role in increasing occupancy. Identify popular OTAs to increase your online reach and get maximum bookings. Also, integrate your revenue management software with the channel manager to ensure that the rates and inventory are updated across all the connected OTAs in real-time.
The metasearch engine helps prospective guests to make a comparison of your hotel’s price across various OTAs, and also with the price mentioned on your hotel website. This will increase the probability of the guest visiting your website and possibly making a direct booking.
3. Integrate web booking engine to get more direct bookings
Optimize your hotel website to generate more direct bookings. Statistics say that bookings done directly on the website are less likely to be cancelled. What does this mean to your hotel business? It means increased occupancy, and increased hotel revenue.
To get direct bookings, you need to integrate your website to a hotel web booking engine. Consider using this strategy for your social media channels such as Facebook and Instagram by installing a ‘book now’ button.
4. Focus on data analytics
Analyze your past and current customer data. Use the insights, such as customer behaviours, booking patterns, etc. to develop a strategy that can help you boost your hotel occupancy.
5. Develop a mobile-friendly website
A mobile-friendly website is mandatory as more than half of the online bookings are made on a smartphone or a tablet. If you are not optimizing your hotel website for mobile, you are losing a massive opportunity to improve your hotel business.
6. Create and promote special packages
Special packages or deals allow you to mask actual room rates with features that add value. For example, if your hotel provides spa treatments or fitness classes, club them with accommodation for a really great package deal. This will encourage your guests to stay at your hotel and use these added services.
7. Keep your guests engaged
Use your customer data to create exclusive mailing lists. So when you have an offer or package that might be of interest to them, you can send mailers and easily engage them. Take help of social media to keep them informed on multiple platforms, reinforcing the message and prompting them to claim the offer.
- 7 Strategies to Increase Hotel Occupancy and Boost Business - 27 October 2020