Tips on How to Increase Hotel Income & Profit

This article will provide a collection of 20 most valuable insider tips, which can provide an outstanding platform for you to maximize your hotel’s revenue.

1. Truly Understand Your Market
   Knowing your market thoroughly is necessary to manage any business successfully. First, identify your hotel’s strengths and weaknesses, as well as new opportunities for, and threats to, your hotel. Based on this, you can then decide your hotel’s USP(s). Armed with these insights, you can establish what your current guest profile is, and crucially, the profile of your future guests.
2. Develop Monthly and Daily Pick-Up Reports
   In revenue management you always aim to adjust the price of your hotel room to the demand existing in the market, in order to post the optimal price per hotel room. For this it is essential to keep track of your hotel’s booking pace.
3. Monitor Your Hotel’s Unconstrained Demand
   Being aware of the total demand in your market will help you to calculate rates for future dates. Knowing the unconstrained demand is key. You can, therefore, keep an up-to-date log of all denials for both individuals as well as group bookings.
4. Utilize Demand Forecasting
   Demand forecasting is vital to maximizing hotel revenues. It enables you to plan ahead and reflect on your pricing decisions later on, allowing you to learn from past mistakes and optimize for the future.
5. Dive Deeper into Seasonality Opportunities
   Every hotel varies in demand during certain periods and days. High demand seasons, national holidays, local festivities and events that re-occur each year are essential to keep in mind.
6. Control your Guests’ Stays Patterns
   When looking at specific dates with high demand your hotel might want to control the length of guest’s stays. By adding restrictions such as minimum or maximum length of stay, you can ensure that your hotel avoids booking out for only one specific date, but also for the days before or after. This allows you to capture demand and increase profitability during times where your hotel is normally not fully booked. Controlling and restricting your guests’ stay allows you to optimize revenue during chosen periods.