Hotels are now charging guests more than ever before. But in many markets, new hotel construction is eating away at demand and lowering overall occupancy. That makes it more difficult to continue increasing rates at the same pace as the last several years.
According to R. Mark Woodworth, Senior Managing Director of CBRE Hotels’ Americas Research, 42 of the 60 U.S. markets will experience more than a two percent supply increase in 2018. Those markets are most vulnerable to negative impacts on performance, he told Hotel Management. Therefore, maximizing returns requires a strategy shift to find new ways to increase revenue. One way to accomplish this: upselling customers on various opportunities during the front desk guest check-in process. Here are a few ideas of how your front desk agents can make your hotel more money at check-in.
A Suite Deal
A hotel room is a perishable commodity, and that loss of potential profit is compounded when your more expensive suites sit idle. Rather than let your best rooms go unsold, your customer service representative can offer certain guests a suite upgrade for an additional fee. This is easy to do when using a modern, cloud-based PMS such as the one offered by SkyTouch.
In Early, Out Late
One frustrating element of the guest experience is arriving too early for guest check-in, or conversely, having to check out prior to a late flight. Instead, offer guests the chance to check in early, or check out late, for an additional charge.
According to an article in Hospitalitynet, “hotels can expect 20% of guests to convert, each paying on average 15% on top of their room rate for earlier check-in flexibility. And, because the room doesn’t need to be re-cleaned, any revenue generated is pure profit and goes straight to the hotel’s bottom line.” However, not all property management systems offer this feature, so be sure to partner with a company offering a cloud-based product, such as the SkyTouch Hotel OS®.
Personalize Promotions
You can also get to know your guests better with the SkyTouch Experience Program (STEP). When a guest starts the check-in process, stored information can be turned into actionable insight for a profitable upsell. Since the SkyTouch Hotel OS® allows you to build personalized packages on the fly, you can, for example, offer guests the opportunity to purchase meals in advance at a discounted cost, such as your hotel’s Sunday Brunch spectacular. You can also offer other on-site opportunities such as spa treatments, or discounted cocktails at the bar. Plus, your hotel can offer tickets to local events or attractions that you know a specific guest is predisposed to enjoy based on information previously collected and stored in STEP.
The industry may be experiencing the peak of the traditional hospitality cycle, but that doesn’t mean your profits have to peak, too. Moving to a cloud-based PMS such as the SkyTouch Hotel OS® opens up new avenues of revenue opportunity – not just when a guest makes a reservation, but also when he or she checks-in.
