As the hospitality industry continues to recover from the pandemic blow, hoteliers have to focus on maximizing revenue to keep their business going strong. Hotel market revenue in Asia is projected to reach US$144 billion in 2023 and is expected to touch 183 billion by 2027. Despite the promising trajectory of market growth, hotels continue to navigate through challenges related to inflation and staff shortage. In crucial times like these, it’s important to take a close look at the hotel’s revenue model and give it a facelift.
This is where technology comes into the scenario. 19% of hoteliers say that the key near-term goal of implementing technology is to drive revenue. The right hotel tech stack has immense potential that yet remains unexplored by many hotel owners—they not only improve operational efficiency of your business but also enhance guest experience and contribute to the overall profitability. In this article, we’ll dive into how you can boost hotel revenue using a hotel tech app.
Making the booking process direct and frictionless
In an ideal scenario, you’d want all of your bookings to be made directly through the hotel, but it’s far from reality. At present, only 29% of guests prefer direct bookings, while the majority choose OTA websites like Expedia or Booking.com. These platforms charge hefty commissions from hotels which can in turn lower your average daily rate (ADR).
When you use a comprehensive hotel guest app like MyCONECT, you’ll be able to offer a seamless booking experience like OTAs do. Your guests can book rooms with just a few clicks, and in case they have any queries, they can chat with AI chatbots or speak to a hotel representative. With the app, you’ll not only streamline the booking experience, promote more direct bookings, and increase RevPAR but also design a more personalized guest experience and build lasting relationships that translate into sustained revenue growth. For all of these, you’ll pay only a nominal fee of $1 per booking if you’re using the MyCONECT app.
Making the most of upselling opportunities
A guest app stays present at each of the touchpoints of your hotel and collects vital data that help you understand your guests better. Analyze the guest data and leverage it to upsell additional services and amenities to your guests. Here are some examples of upselling you can implement:
- Room upgrade: Offer an upgrade to a more premium room or one with a better view right at the moment when the guest is checking in. This is a quick and simple way to increase revenue per guest.
- Early check-in and late check-out: 62% of guests prefer to check in and check out using a hotel app—this is something your dedicated guest app will take care of. On top of it, you can offer early check-ins and late check-outs through the app for an extra fee, as guests are willing to pay $20-$30 for the added convenience.
- Valet parking: Help guests secure a parking spot for an additional fee even before they reach the hotel premises. The hotel app records this data and recommends pay-to-park services when the guest visits again in the future.
- Pet fees: Guests often love traveling with their fur babies, and they would be willing to pay a fee to accommodate them. If your hotel is pet-friendly, don’t do it for free—charge a fee at the check-out and increase your hotel’s ancillary revenue.
Enhancing guest loyalty and repeat business
Loyalty programs play a significant role in nurturing guest relationships and encouraging repeat business. Marriott International, for instance, has built a solid loyalty program with over 173 million members. Out of every ten bookings at their hotels, six are made by Bonvoy members. Here’s how you can use a guest app to enhance guest loyalty and boost revenue:
- Reward points and exclusive offers: Offer loyalty programs through the guest app that reward guests with points for every stay and every purchase of the hotel’s services. They can redeem these points to get access to room upgrades, complimentary services, or discounts on future bookings. These tangible rewards will incentivize guests to stay longer at your property and make them feel valued at the same time.
- Gamification for engagement: Integrating gamification techniques into the program, such as badges, challenges, and progress tracking through the guest app can potentially increase engagement and brand loyalty. Gamification fosters a sense of achievement and makes interacting with the app an enjoyable experience. This may work as a great incentive to stay loyal to the hotel and seek out opportunities to earn rewards.
- Personalized promotions and notifications: Mobile apps allow you to send targeted notifications and promotions to loyalty program members based on their preferences, behavior, and past stays. For example, if a guest always orders wine at night, you can send a notification at dinner time offering a discount on drink orders. This positive experience not only encourages them to return for another stay, but they may also be open to exploring additional amenities and services the hotel has to offer.
At times like these when guest expectations are constantly evolving and you have to stay at the forefront of innovation, technology helps you thrive and grow sustainably. Implementing a hotel tech app like MyCONECT is an investment that holds immense potential to boost both RevPAR and non-room revenue and secure a prosperous future for the hotel, while also ensuring a memorable stay for every guest.