Tip #1: Keep your pricing somewhat consistent
Offering your rooms at the right price is one of the key aspects of revenue management. Your rates can fluctuate in response to several factors: current demand, events in the area, (un)availability of certain services or facilities (e.g. a swimming pool in summer) ...
Try to avoid strong price fluctuations. A sharp price increase can lead to dissatisfaction and deter travellers from booking with you. On the other hand, a sudden plunge of your prices might come across suspicious and makes it more difficult to charge a higher price later. In any case, communicate why your price is currently higher or lower than normal. This way, you can easily return to your normal rate afterwards.
Tip #2: Pick the right time to offer promotions and arrangements
Discounts and free add-ons can be interesting, as long as you provide a set timeframe and logical reason for them. For example, you could offer a discount for the upcoming holiday season. This makes it clear to customers why there is a lower rate at that time.
Offering packages remains one of the best ways to upsell and increase your revenue per booking. You can also propose specific extras for special occasions like a bottle of champagne for a wedding anniversary or birthday.
Tip #3 : Higher value outweighs a cheap vacation
According to a study by Booking.com, travellers are ready for adventure, surprises and unique experiences. Value for money will be a key factor here. They will be mindful of their travel budget, but are willing to splurge on the right extras and activities to get the most out of their trip. This entails interesting upsell opportunities for you!
Tip #4: Invest in direct bookings
Since the covid pandemic, direct bookings have gained popularity. This is a positive trend for you, because direct reservations are free of commission, leaving you with more profit per booking. Try to keep your direct rate lower than the prices on your other channels and offer better terms & conditions if possible.
Having a user-friendly booking module on your website is indispensable to encourage travellers to book directly. Our Booking Engine comes with a price comparison tool (Ratebox) which you can use to highlight your favourable direct booking price and additional advantages.
Tip #5: Let a smart pricing tool do the work
Constantly monitoring demand and updating your prices accordingly is difficult and very time-consuming. Luckily, there are innovative solutions like Pricing Manager that can automate this process. Tes all important data propose optimal room prices hourly. Thanks to the integration with our Channel Manager, these recommended prices can be updated directly across all channels. Needless to say, this is a highly effective tool to maximise revenue while minimising effort!
Start driving more revenue right away!
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