The hotel industry is following in the footsteps of OTT and SaaS apps to tap into the subscription model, and this can turn out to be a grand success if executed correctly.
After the major blow of the pandemic, hoteliers have adapted to the changing scenarios in the industry. This is a good time for hotels to diversify their services, and create backup revenue channels. Subscription is one of the best ways to achieve this. Here's how:
- Hotels do not wish to run on one-off purchases, and with subscriptions, it’s possible to build long-term relationships with guests
- Creates a predictable and recurring revenue stream for hotels
- Attracts specific target audiences such as business professionals who travel frequently or gen Z who prefer subscriptions to keep one-off costs low
- Increases scalability of the hotel business and offers financial backing during unprecedented times
Key strategies for hoteliers to use the subscription model to their benefit
1. Surprise your customer with additional value
The idea behind a subscription or membership is to establish a long-term relationship with the customer, and earn their loyalty. This can be possible only when you offer better value at an attractive recurring cost that a customer cannot refuse. If you want to retain customers, implement latest technologies and surprise them with high-value products, services, and benefits, such as:
- Monthly payment plans
- Room upgrade
- Special discounts
- Priority check-in and checkout
- Priority room availability
- Curated in-room services
- Complimentary meals
- Subscription to entertainment platforms
- Unlimited travel pass
In case you have existing loyalty programs for recurring customers, make sure the subscriptions offer more. To up your revenue, there is no alternative to making your guests' stay a memorable one.
2. Market to a specific customer base
The number of remote workers and freelancers has gone up after the pandemic and that's definitely good news for the hotel industry. The new-age location-independent employees have the flexibility to work from anywhere in the world, and they make the most of it. As they travel frequently and prefer to have a convenient space to work and relax at the same time, you can offer them special workation subscriptions to strike a long-term deal. The same offers can apply to bleisure guests as well because they also tend to travel for work quite often.
Besides the usual perks, treat them with additional benefits such as a multi-location subscription, high-speed internet, in-room workstation, the latest gadgets, access to working spaces within the hotel, gym membership, access to educational platforms, etc. InterContinental has adopted this model where guests can enjoy the hotel's workspace and guest room with a monthly subscription plan.
3. Collaborate with other subscription-based businesses
One way to step up your game is to reach out to other subscription-based platforms, so you can offer curated services to your guests. This is a great way to create exclusivity, something only your subscribers or members can enjoy.
The Hilton-Netflix tie-up is a great example of these kinds of collaborations. With the Hilton Honors mobile app, guests can log into their own Netflix account and start watching their favorite show from where they left off. Guests who don't have a Netflix subscription can sign up on Netflix directly from the Hilton Honors app. To make things all the more seamless, guests can also access Netflix by pressing the button on their TV remote, and they will be taken to a login screen.
The bottom line
When guests see value in your packages and subscriptions, it might lead to repeat stays and increase occupancy rates. Using subscriptions could be a possible way to generate more cash inflow, with which you can improve your services and offerings further.
Take the digital route to offer a comprehensive and hassle-free suite of services to your guests. MYCONECT's two-way integration with your hotel PMS makes way for contactless communication, mobile keys, seamless room upgrades, controlling room settings, and more, and it also simplifies operations for your hotel staff. For more details, get in touch with us.