One of the biggest effects of online travel agencies on the accommodation industry is that the prices have became transparent, which has increased the competition, while decreasing room prices and profit margins. These are welcome developments for hotel guests, but the decrease of profit margins in the costly business of hotel management is impossible to consider as something ideal for the accommodation industry.
So, how big is the role of low room prices in the decision-making process of hotel guests? It is obvious that low room prices have an impact on different guest profiles; nevertheless, what matters for properties is to increase room sales without lowering their prices.
The target audience of your property is an important criterion in this respect. However, there are more tips for you to enhance customer satisfaction and your sales without reducing your profit margin.
No concessions on good quality
Quality is of top priority for a large majority of guests. Many of them are aware of the fact that low prices mean making concessions on quality. Therefore, hotels can increase their sales without lowering prices at all if they strive for keeping the quality as highest as possible. And of course it will work in your advantage to notify your potential customers of the current customer satisfaction you achieve with your good service quality, for example, by sharing related guest comments on your social media accounts.
Strengthen your brand
According to studies, prices are of secondary importance for guests when it comes to a renown hotel. This is because preferring places that guests are sure they will receive high quality service and satisfaction eliminates potential disappointments. Therefore, promotional activities to strengthen your brand image and enhance your recognition might work very well for you.
Correct way of communication
During their travels, many guests would prefer communicating with a staff member who listens to them, understands their expectations and problems while providing solutions. If you would like to avoid lowering your prices, you should facilitate the lives of your guests as you understand their expectations and offer solutions for possible problems. Communication is the way to achieve this. In this respect, you better have staff members with advanced communication skills and empathy when addressing your guests directly. Also, speaking the same language with guests from different countries is an integral part of proper communication. If you would like to sell in other countries too, you should take this into consideration.
Create discount packages
Another alternative to lowering room prices is to create extra packages with different benefits that you can include in room prices with discounts. For example, honeymoon packages have been one of the methods that have been used for a long time in this industry. You can create various packages for different occasions and concepts, which you might not sell under normal circumstances, to increase both your sales and profitability per room.
Save low price card for extraordinary situations
However, a strong brand with a principle of high quality and customer satisfaction might not be sufficient for increasing the occupancy rate during some periods. In this case, make sure to use your trump card of lowering prices only for such extraordinary occasions where it is the only option. Dead seasons can be an ideal time to apply such lowered price policies for your property. Additionally, you can enhance the loyalty of other guests who would like to benefit from low prices by offering such prices only to your loyal guests.
Lowering prices can be a commonly-used method within the industry; however, its advantages are open to debate. So, we believe that you will be able to find other ways to increase your sales without lowering your prices, thanks to these tips.
Of course, a platform with advanced features is the key requirement on your path to strengthening your brand, communicating with your potential guests 7/24 and selling directly to them Here HotelRunner comes in tunes to offer everything you need in a single package. If you would like to benefit from the peerless features of HotelRunner, create your account now and start to make your property online immediately.