How to Increase Hotel Occupancy Rate & Revenue During Low Season

Summary

This script discusses strategies for managing low occupancy dates in the hospitality industry. It emphasizes the importance of understanding demand and collaborating with sales and marketing to target the right segments with promotions. Key steps include identifying need periods, creating a marketing calendar, setting promotion targets, ensuring promotions are bookable across channels, and monitoring their effectiveness. The script advises adjusting or discontinuing unsuccessful promotions and analyzing their impact on revenue and occupancy to inform future strategies.

Takeaways

• 📈 Understand Low Occupancy: Recognize that management can't generate demand but can assist sales and marketing to target the right business at the right time.
• 📆 Demand Calendar: Create a marketing calendar to coordinate initiatives and ensure the entire organization is aligned on strategies for demand periods.
• 🎯 Target Segments: Identify which market segments are lagging and tailor promotions to their specific needs and preferences.
• 🔍 Historical Data: Utilize past data to determine which promotions were successful and apply those insights to future campaigns.
• 💡 Promotional Strategy: Develop promotions that cater to the desires of different client segments, such as corporate accounts or retail customers.
• 🎯 Set Targets: Establish clear targets for promotions to measure their success and ensure they contribute to revenue or occupancy goals.
• 💰 Revenue Analysis: Calculate the number of additional room nights needed to match the revenue of a discounted rate to assess the true impact of promotions.
• 🔗 Ensure Bookability: Verify that promotions are accessible and bookable through all intended channels, including OTAs and travel agencies.
• 📊 Monitor Promotion Pickup: Keep track of how well a promotion is being received and adjust or change strategies if it's not performing as expected.
• 📈 Post-Promotion Review: After a promotion, evaluate its performance against set targets and its impact on revenue or occupancy.
• 🔄 Learn and Adapt: Retain successful promotions for future use and avoid repeating unsuccessful ones to continually refine marketing strategies.

Q & A

What is the main focus of the transcript regarding low occupancy dates?

The transcript focuses on demand generation, the role of management in supporting sales and marketing, and strategies to target the right business segments at the right time during low occupancy periods.

How can management assist in generating demand for low occupancy dates?

Management can support by working with sales and marketing to identify need periods, understanding which segments are lagging, and leveraging past promotional successes to target the right business segments effectively.

What is the importance of having a demand or marketing calendar?

A demand or marketing calendar helps the entire organization stay informed about ongoing and planned initiatives, ensuring alignment and coordination across different departments.

Why is it crucial to identify the right segment to target for promotions?

Targeting the right segment ensures that the promotion is relevant and appealing to the potential customers, increasing the likelihood of a successful campaign and avoiding unnecessary discounts for less interested segments.

What should be considered when setting targets for a promotion?

Targets should consider the additional room nights needed to achieve the same revenue level as before the promotion, taking into account the cost of the promotion and the potential impact on revenue.

How can a hotel ensure that a promotion is bookable through all channels?

By testing all links, checking with OTAs, travel agencies, and the hotel's reservation staff to confirm that the promotion is visible, accessible, and correctly communicated.

What action should be taken if a promotion is not being picked up by customers?

The hotel should reassess whether the promotion is suitable for the market, check its bookability across all channels, and consider modifying or discontinuing the promotion if it's not attracting the desired response.

How can a hotel measure the success of a promotion after it has ended?

By comparing the performance metrics before and after the promotion, such as revenue, occupancy, and STR (Single Top Line) performance, to determine if the promotion met its targets and contributed positively to the hotel's performance.

What should a hotel do with promotions that have proven successful in the past?

Successful promotions should be kept as options for future use, as they have a proven track record of increasing occupancy or revenue.

Why is it not advisable to repeat promotions that did not work previously?

Repeating unsuccessful promotions may not yield better results and could lead to further revenue loss or missed opportunities for more effective marketing strategies.

How can a hotel determine if a promotion has increased its revenue or occupancy?

By analyzing the forecast and actual performance data before and after the promotion to see if there was an increase in revenue or occupancy that can be attributed to the promotional efforts.