how hotels are limiting sales and profits?
By Piyush Kedia
14 May 2019
Hotels are in the business of hospitality. Like any business they are constantly looking at ways to increase their revenues and profits. They have always considered room sales as their primary source of revenue and invest a lot of their time and money in increasing this revenue.

Hotels have made large investments to provide better infrastructure, rooms, facilities and services to their guests, assuming that they could eventually command a higher room rate.  On the contrary the room rates have been constantly dropping due to increased competition and arrival of Online Travel Agencies (OTAs). The option to easily compare and book multiple hotels across the city, certainly gives an edge to lower priced properties.

What revenues are hotels missing out on?
Hotels, like airlines, need to look at maximizing their revenues from multiple sources and add more value to each stay than just providing a comfortable room.

Guests staying at a hotel are outsiders to the city they are visiting and would like to make the most of their time here. Their basic needs of food, travel and entertainment are waiting to be fulfilled. Along with comfort, guests are also looking for a good time, convenience and value for money. Hotels have had very little focus on increasing revenues from ancillary services, which if done right can significantly add to their profits.

How hotels market services today?
At the front desk - As a guest, you walk into the hotel and expect to get a room at the earliest. You are not interested in knowing about the special dinner buffet or the spa packages on offer. Hence hoteliers marketing their services through front desk staff have not seen many takers.

Inside the room - Next the guest checks-in and walks into the room. Here he or she sees brochures, leaflets and menus for all the services that are on offer, and probably some deals. This marketing collateral is only handy when the guest is inside the room.

Most guests spend very little awake or “active” time in their room or at the hotel. Hence hotels need to find better ways of promoting their services.

Are your guests able to access your services conveniently?
Guests can raise requests most conveniently only from their rooms – view menus, check out offers and place an order using the room phone. Is this constraint reducing the utilization of services by your guests? Both business and leisure travelers spend most of their time outside their rooms either traveling around the city or enjoying other amenities within the hotel premises. Providing them the convenience to view services and raise requests from anywhere and at any time will result in higher utilization of services.
Technology can play a big role in providing maximum convenience to guests and provide an effective marketing tool to hotels. This will not only result in higher revenues but also increased guest satisfaction and delight. We at About Stays help hotels transform guest experiences through our Personalize, Interact and Engage approach to hotel stays. To know more or get in touch, visit our website