Nothing is particularly hard if you divide it into small jobs. ~ Henry Ford
As hotel operators, you know first-hand that the lodging industry has experienced ups and downs in recent years. But with all business down cycles, one thing remains constant – an upcycle will eventually occur. And luckily for the lodging industry, the upcycle is happening now.
Leading public accounting firm PWC, in conjunction with Smith Travel Research, has forecasted 2014 to be an excellent year for hotel industry growth, both for large chains and independents. For the independent hotel segment, PWC expects RevPAR (Revenue Per Available Room) growth of 5.9%, driven primarily by stronger ADR (Average Daily Rate). Additionally, demand for hotel rooms is expected to increase 2.3% for US independents.
To briefly sum up PWC’s report – this is Good News. Consumer confidence is growing, so business and leisure travelers are preparing to spend more dollars on travel than in years past. Now the responsibility falls on hotel operators to capitalize on this opportunity to grow their business.
From global chains to a countryside inn, RevPAR is used by all operators to gauge the health of their business, and RevPAR growth is the sum of many parts: efficient operations, revenue management, balancing occupancy and ADR, marketing, seasonality, competition, etc. The list goes on and unfortunately, there isn’t one cure-all solution to sync all the moving parts of your business that impact RevPAR.
However, by breaking these parts into smaller, more manageable projects, collectively you will better set yourself up for RevPAR growth.
We’ve put together a list of three tips that can help you to grow RevPAR in 2014 and beyond.
Your Guest’s First Impression
Information is only valuable when it is correct and consistent.
Starting with your property’s website, social media channels, Google and TripAdvisor listings, Chamber of Commerce directory and anywhere else information about your property is listed, check to ensure that:
- All important information, such as physical address, phone number, website and email, is correct
- All of the displayed images best showcase your property.
- All of the online links work and provide guests with the information they need to make a booking decision.
Also, ask yourself if there is any information about your property, new amenities or special rates, which can be added to help convert a potential guest into a booked reservation.
Have you accurately represented your property, so that your guest’s experience will meet their expectations? Ask yourself:
- Does my property visually match the description and images posted online?
- Am I staffed appropriately to meet the needs of my guests?
- What up-sell opportunities do I have to present to my guests? Special amenities and services, such as late check-out and gift certificates to local restaurants or spas, are excellent ways to generate additional revenue.
What can be done to influence a return visit or guest referral?
- If you have an email program, send out a note thanking your guests for their stay and encouraging them to follow you and leave positive feedback on social media and review sites, such as TripAdvisor.
- Continue your relationship by sending regular email updates so your property stays top-of-mind when they are making future travel plans or referring a friend.
- If you have a direct-mail program, add past guests to your distribution list so they regularly receive information about your property.
- Evaluate your competition to see what they are doing to generate new and repeat business. Using this information, begin planning what you can do to set yourself apart.
From your first online impression to checkout there are many things that can be done to improve RevPAR in 2014. The innRoad system can help you do many of the things listed above and save you a lot of time.
Try it out for yourself today: Personalized Demo