5 Winning Strategies on Increasing Hotel Occupancy Rates
Hoteliers are often faced with persistent challenges on how to maintain and increase their occupancy rates. Having a full occupancy rate every night is the most ideal but doesn’t happen all the time. There are numerous factors that affect the property demand such as seasonality, weekdays, no holidays and so on. Some may even opt to keep slashing their prices to increase demand but will be detrimental to the hotel in the long-run.
There are several strategies that hoteliers can implement during the off-peak periods to increase occupancy. The best is to put yourself in the shoes of the guest to understand their customer journey. This will increase the chances for potential guests to find you during the booking phase and have a compelling advantage versus competitors. Here are expert tips on how to increase hotel room occupancy as soon as possible.
5 Winning Strategies on How to Increase Occupancy Rates
1. Communicating to the right target audience
If you notice that the hotel’s occupancy rates are lower than your competitors, the target audience of the hotel should be revisited. Hoteliers should be targeting the right target market that has a higher chance of staying at the property. They could be business travelers, young couples with families, groups of friends, and so on. It’s best to gather data from your guest records to understand the right approach.
2. Create packages and promotions
Once the target audience has been defined for the hotel, the next step is to start creating packages and promotions appealing to this particular target segment. Different guests will have different expectations in mind and catering to this specific need will be beneficial to your property. Their expectations can vary depending on their cultural background, ethnicity, profession, age, income group and so on. Use this information to your own advantage and make them an offer that is compelling to them. Do keep in mind that the packages and promotions to be offered should still have a strong pricing for your hotel to earn profits.
3. Provide loyalty discounts
Best way to increase hotel room occupancy is to have loyalty programs for your guests. This will also encourage them to have returning visits to your property. Loyalty programs are very helpful as it costs less to retain guests than to attract newer ones. You can entice them with a special loyalty discount during off-peak season or less busy times. Aside from offering during off-months, loyalty discounts can be extended on their birthday or the anniversary of their last visit. Guests will have an increased satisfaction with your property because of this acknowledgment and gratitude.
4. Partner with corporates
Another tip to increase occupancy is to sign up with corporates and other businesses. It’s best to diversify multiple sources of reservations and will eventually increase chances of your hotel being occupied. For city accommodations, the opportunity in partnering with businesses is too big to miss out on. Your hotel should come up with a compelling package that will stand out against competitors. The best part of having these types of partnerships is being assured of steady business coming into your hotel.
Having a robust cloud-based PMS like ZEN eManager will also help you pre-define your package for every corporate guest booking so you don’t have to input it manually all the time.
5. Continuous engagement with your guests
Lastly, it’s important to develop your own mailing list with the right target audience. Stay in touch with your previous guests through having constant communication with them by offering midweek specials, special loyalty discounts, and so on. Another way to engage them is through showing the best highlights of your hotel and also the nearby sites to visit as well. By having the right communication to your target market will increase the chances for them to book with your hotel instead of competitors.
To get the best results for hotels, it’s best to seek expert advice on the improvements that can be done and how to increase performance. With this, ZEN eManager, the digital all-in-one solution has helped 4,000+ properties across Southeast Asia in all aspects of hotel management such as hotel operations, channel management, revenue management, pricing strategies and even review management.
ZEN eManager: The Complete All-in-One Solution to Increase Occupancy Rates
ZEN eManager is a digital all-in-one solution that allows full management of hotel listings across all online travel agencies (OTAs), monitoring of hotel operations real-time, and sending of automated guest reminders through its cutting-edge cloud-based hotel software, eZee Absolute (Property Management System) and eZee Centrix (Channel Manager). To ensure optimal pricing and maximum profits for your hotel, it includes a dedicated revenue manager straight from ZEN HQ.
ZEN eManager’s Property Management System gives a 360° view of hotel operations, in which current occupancy rate, on-site staff, and revenue per available room (RevPAR) can be accessed through the mobile app, or any internet-enabled gadget. It also sends automated guest reminders which keeps guests engaged and increases assurance that your hotel is safe and secure. ZEN eManager’s Channel Manager allows hoteliers to monitor cancellations, re-bookings, and no-shows real-time, in which they can easily adjust room availability in any OTA anytime and anywhere, in one dashboard.
A dedicated revenue manager straight from ZEN headquarters is also assigned to the property to ensure that rates are optimal.
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