Obtaining Revenue, Over A Lifetime
Hoteliers are aware of the Life Time Value (LTV) of their guests and its importance, but with day-to-day operations, the overall significance of gaining and retaining the loyalty of high-value guests can sometimes get overlooked.
LTV simply is the amount of income that guests generate for your hotel, over the course of your relationship. The cost of obtaining that new guest is lessened however, only if they have a great experience. If their value perception was off when you obtained them, there is the potential loss to the hotel if that guest is unsatisfied and they advise others against staying at your hotel.
To avoid these disappointments and increase revenue, here are some of our hospitality revenue management tips that will extend the LTV of your guests:
Set the Tone Online
Seems simple doesn’t it, however many hotel owners and managers often overlook the importance of displaying the same level of service on their website, as is provided at the hotel. Your hotel’s website should be the main (and cheapest) way to book an online reservation, however some people just draw all traffic to their website, regardless of whether it is the best type of traffic for the hotel product their specific hotel offers.
Make sure the service level of your website, and the traffic you want delivered there; match your hotel, therefore avoiding any misperceptions (positive or negative) that can impact the guests’ impression.
Your marketing initiatives may be brilliant, and guests may be streaming in the doors, but if the service level of the hotel staff that greets them is poor, the potential for damaging reviews is there. The doorman and front desk staff set the tone for your property once guests arrive and they need to be ready anytime they are facing the guests. The front-line staff needs to be friendly, incentivized, rate conscience, monitored and above all deliver the service level you want for your hotel.
Revenue Manage, Everyday
Just having a rate sheet upfront for your staff to reference isn’t enough. Hopefully you work with a revenue manager regarding what rates to display, on any given day, for all of the individual room types, but the amount of revenue you can obtain from your guests doesn’t just stop at what you are charging them for their room. Informing them of the amenities at your property (free and for cost) upon check-in is key and may lead to increases in revenue. Have a plan in place for your staff to not only sell the amenities of your property, but what about the possible room upsell or package add-on. Even informing them of daily updates or promos on Facebook – all in an effort to engage them and keep them spending their dollars at your hotel.
Once your guests leave the hotel, don’t forget about them. Immediately send them a thank you and ask for feedback. Record what time of year they came, and for what reason (anniversary, conference, vacation, etc), which will allow you to personalize your marketing efforts and to fill rooms during need time periods the following year. Connecting with them throughout the year, even when they don’t have a reservation on the books, keeps your hotel top of mind so they are more likely to book a stay again.