Promoting your hotel and its facilities to guests can be a challenge, especially with there’s competition to contend with. Dr. Maria Frangieh, managing director of Socialprise, shares her tips on how to increase guest spending.
Boosting sales while keeping guests satisfied is what every hotel strives for. Luckily, there are some simple yet effective ways to improve your offering, thereby encouraging your guests to maximize their spending during their stay.
Types of promotional strategies
Promotional strategies differ from one business to the next. They can target loyal clients — through an exclusive program, for example — or provide new customers with enticing introductory offers. Discounts, remarketing, social media contests, email marketing to promote exclusive online discounts, special events, upselling and advertising campaigns and just some of the many ways hotels can drive bookings. What is important, however, is to first understand who your guests are and what appeals to them. Once these points have been established, you can then look at your resources and goals to decide on the best promotional strategy and channels to use.
Understanding your customers’ preferences
First things first, define who your customers are and understand their needs. If you have a business that is already up and running, the task is easy. Look at your customers; log and identify trends regarding the sales they made at your hotel. Based on these trends, you can identify different sub-segments to target separately. Some customers are price-sensitive, while others are more high-end. Do they book for just one night, or do they spend longer at the hotel and use the facilities? Are they leisure or business travelers? Identify which facilities are the most attractive, and lucrative, and focus on them.
Which promotional strategy to adopt
Every business is different and consists of unique components: location, facilities, and so forth. Adopt a promotional strategy that is aligned with your resources and goals while keeping your guests’ utmost satisfaction in mind.
Common mistakes
Some hotels use discounts to attract price-sensitive guests and generate cash flow over the short term. However, this might be at the expense of high-end guests who are willing to spend more. Do you want to sacrifice this audience for the sake of short-term reward? To ensure a steadier flow of cash while maintaining guest satisfaction, you may want to consider the edge promotional strategy. It is a strategy I use regularly with my clients, and they all appreciate it.
Edge promotional strategy
It is possible to attract all types of clientele by offering your products/services with paid add-ons. Start with a standard offer that meets the minimum requirement of most of your guests. Then create additional offerings, usually at the edge of your standard offering, that will provide extra benefits to those who want to feel privileged and are willing to pay more. Think upselling instead of discounts by offering variations to the core product. The pricing strategy is two parts strategic and one part marketing. It is always easier to drive more revenue from guests who already trust your brand. Remember the last time you visited Starbucks and were tempted by additional offerings to upgrade your drink? The same applies to hotels.
In short, keeping guests happy is the main goal. Create trust, keep a standard offering that attracts all guests and look for the extras that you can price separately to attract individuals who are willing to pay more. This is where you’ll make (more) money.
