Selling Hotel Rooms in a Sluggish Economy

In a sluggish market, using the core concepts of revenue management can definitely help hotels increase their occupancy rate and average room rate. Even during harsh economic conditions, it is possible for hotels to generate high demand with the right implementation of yield management. In addition, recognizing periods when the demand for hotel rooms significantly increases is critical. This enables hotel revenue managers to drive rates when they can and modify rates to charge customers lower during periods of low demand.

Although predicting these instances may be time-consuming, it can pay off big time. Hotels that practice effective revenue management can make the right decisions that provide the best value for the entire operations. The premise of any strategy is to have good data. However, collecting data is not guesswork. It requires diligent and thorough research about the market including the competition. Some of the techniques you can implement include:

Re-examine the Competition

Although some hoteliers might not realize it, competition actually becomes tougher during hard times. This is because even high-end hotels will try to get mid-range clients and vice-versa. Other hotels will try to capture additional market share that previously weren’t even theirs.

In a sluggish economy, knowing who your competition is is an absolute necessity. Take note that by competition, this does not necessarily mean the hotel down the corner; it can also mean other hotels in the city or even the travel packages available on the internet. But this can also mean a lot of opportunities if hoteliers know how to take advantage of the situation.

Strengthening Your Web Presence

As is oft repeated on this blog time and again, internet sales are absolutely crucial in today’s time. It is a fact that 70% of all travelers search the internet for travel deals and accommodations. Now, there is a question of whether they can locate your hotel or not. Improving web presence can increase hotel sales; in fact, you can even significantly increase occupancy and even room rate with this technique.

The internet can mean the difference between success and failure. This particular hotel distribution channel has come a long way from its beginnings. Some would even say that it revolutionized the industry because travelers no longer need to plan for months ahead, they can travel immediately within a few days of their arrangements.