5 Simple Hotel Promotion Strategy to Maximize Hotel Revenue

hotel promotion strategy

Competition within hospitality industry has become tougher over the years. The rapid development of new hotels makes competition to get market share more difficult than in the past. This condition even get more complicated because of the dynamic changes of travelers behavior; which now heavily depends on technology. To cope with this condition, hoteliers need to be more creative in running their business. They need to come out with correct hotel promotion strategy to be able to keep their property survive over the competition. But how to create one?

Promotion is an essential part of your hotel marketing activity. There are many kinds of hotel promotion strategy that you can explore for your property. The most important thing when you plan promotion for your hotel is to understand the goal of the promotion itself. Whether it is to attract new customer or to attract repeated customer, or simply offer more value to your customer. In this article, Caption will highlight the keys to a perfect hotel promotion strategy that will attract more guest to your hotel.

Seasonal Discount During Low Season

Seasonal promotion is hotel promotion strategy that aims to increase number of occupancy during low season. There are several things that you can do for this kind of promotion. The most common way is giving lower price or discount during low season period. While this method sounds simple, you need to really think about it. To some extent, lowering price is risky because this can drag you into

To some extent, lowering price is risky because this can drag you into price war. And sure, being in a price war is the last thing you need because it will hurt your business instead.

Therefore, when you decide to make discount or lower you room rate, you need to make sure that it is not below your basic room rate structure. There is no point when your hotel is fully booked but your revenue is below your expense, right?

You can also make your hotel promotion more specialized for specific market target. For example, your hotel occupancy rate is low on weekdays, then you can try to attract business travelers.  You can promote your hotel by offering discount during weekdays. This promotion can be combined with other hotel promotion strategy to make it more appealing and offer more values for customers. For example, you can offer free transfer service for second reservation within a month. This surely will attract customers as long as you understand their needs.

Direct Booking Promotion in Your Website

hotel website booking

When you want to promote your hotel in internet, the best place to put your promotion is your website. Even if you have been connected with several OTAs, direct booking should be your priority when you want to generate a perfect hotel promotion strategy. Make promotion in your own website will not only give you opportunity to attract customer but also a good way to develop your website as main distribution channel for your hotel.

Direct booking promotion does not need to be a complicated promotion model. It can be as simple as giving discount or offer free service if customer book directly from your website. For example, you can give special 20% off discount for every reservation that made from your website. You can also offer free breakfast for guest who books from your website. Furthermore, you can promote direct booking from your website by offering more flexibility on your reservation policy. For example, you can apply more flexible cancellation policy for reservation from your website. Although it might not be the main factor that attracts guest, but it might make them to consider to book from your website instead of OTA’s.

Read our article about ‘boosting direct booking from your hotel website’ here.

Attractive Guest Loyalty Program

While most hotels tend to acquire new customers from their hotel promotion strategy, maintaining repeated customer should also be your focus. Repeated guests are very important for your hotel business. As a regular customer, they will also be a good publication for your business from the word-of-mouth. Although today it is more difficult to attract customer through loyalty program, but there is still a chance to attract guest from this hotel promotion strategy.

So, what do you need to make your loyalty program attractive for your customers?

Easy and simple program should be the first thing that you should consider. Today, guest will not be interested for loyalty program that require them to collect points for long time to get benefit that actually can be immediately received. So it is important for you to make it easier for them to get and claim their benefit. For example, free one night stay after five nights stay at your hotel will not attract customer. Instead, you can use the idea to give 30% discount for second night stay. In addition, you should also give relevant benefit for your loyalty program, like special discount, free stay, or free meal at your hotel.

Read our article about ‘utilizing guest loyalty program’ here.

Create Unique Package

Another great way to attract guest to your hotel is by offering unique package. This package promotion will be a good hotel promotion strategy to attract specific segment of travelers. For instance, you can try to attract romantic travelers by offering romantic or honeymoon package. For other alternative, you can also offer cultural tour package for travelers that interested in learning local culture in your area.

The most important thing when creating package promotion is understanding the customers needs. In order to get understanding of your guest preference, you can regularly check and review your guest history. It will be easier for your to determine which market segment that mostly stay at your hotel and what are their preferences. For example, after reviewing your guest history you can see that most of them are young couples with age ranging from 25 to 35 years old. As this market segment mostly looking for romantic experience during their holiday, you can offer special package for them. It might be as simple as free late check out, special decorated room, or romantic dinner experience in your hotel restaurant. You can combine all these special services and offer it for them as unique package to give special experience for them.Read our article about ‘creating

Read our article about ‘creating romantic package for your hotel’ here.

Partnership with Local Business

When you plan to do hotel marketing campaign, partnership with others business will give you valuable benefit for you. Promotion partnership will not only effectively reduce your promotion cost, it will also make your promotion scheme more appealing and has wider coverage. Furthermore, it will also give you opportunity to get new market segment from your business partner market. This partnership will be beneficial not only for your hotel marketing but also contribute for better business environment in your local area.

Understanding your hotel market become crucial aspect when deciding to have partnership with other business. You should identify what they need during their travel trip . In addition, you also need to understand what possible service that you could give from the partnership. For example, you notice that most of your guest looking for car rental to go to tourism destination, then you could do partnership with car rental company to accommodate your guest need. Then promotion partnership scheme, could be discount for every car rental service that ordered by your hotel guest. In addition, you also could do promotion by give discount for guest who previously use service of the car rental company.

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