Destination properties are staying afloat amidst the pandemic. Why? They offer premium space.
Resorts with beachfront cabanas and ski properties that offer self-contained chalets provide premium leisurely space for families that want to get away and relax while still practicing social distancing. This is why they still earn amidst the pandemic and such is the reason why 2021 looks bright for their industry.
Diego Fernandez Perez De Ponga of Palladium Hotel Group shared that people now fear big buildings and enclosed spaces. Resorts are the complete opposite because they are spacious and airy, that guests can be fully spaced out and separate from each other. Resorts should go all out in selling those following factors. Caribbean resorts are doing well because they boost their marketing materials with such factors.
Revenue management can be complicated if you run a resort with multiple room types and varying seasons. It becomes all the more complicated now, now that demand is very short-term and inconsistent.
But you need not worry, as there are solid and effective ways to ensure that your resorts continue to earn even amidst the pandemic. It can simply be achieved if you’re going to deploy tactics and strategies that we are going to share. To remain profitable and earning during and after the pandemic, you must ensure that you achieve these two important things:
- You must ensure that you remain profitable and stable.
- You must make your operations ready for the new market that is to emerge after the pandemic.
After reading this post, you will be better equipped in achieving the two goals.
6 Powerful Resort Revenue Strategies for 2021: Tactics That Will Make Your Hotel More Profitable
1. Focus on Your Ancillary Revenue
Room revenue is still everyone’s gauge in determining revenue success for resorts and hotels. But considering the pandemic, your revenue management must be more aggressive. You must now also put dedicated attention to other sources of revenue. You must proceed with a strong vision and control of your resort’s total revenue.
You should now also zone in on your earnings from other resort properties and amenities like food, spa treatment, and revenue streams like lift tickets and ski passes. You could maybe give discounts on additional hotel stays because that will equate to more expenditure on your resort amenities, like tickets, passes, and food.
To stay afloat amidst the pandemic, hoteliers must maximize and build-up all revenue streams.
2. Rethink Shifting Seasonality
Most hotels and resorts still operate with only two seasons in mind: the low season and the high season. This should not be the case anymore as the pandemic made demand more volatile and complex to track. Resorts should now be looking for more markets to engage and attract.
A good example is Helios Hotels in Majorca, Spain. Helios Hotels opened last February not just because of the carnival but because of the country’s cycling season. Such a season have cyclers from all over the world going to Majorca and the hotel grabbed that ripe chance.
Resorts should now look to the future and optimize an open pricing structure. With one, more demand signals can be accommodated to come up with confident price plans all-year. All hotels and resorts must now have the ability to run short-term forecasts to effectively prepare for quickly-changing market demands.
For more dynamic revenue management, you should be ensuring that you’re fully insured across all endpoints. If you’re looking for Australian hotel and pub insurance, you should reach out to experts in the field like The Matrix Insurance Group.
3. Solidify Guest Loyalty
COVID changed businesses forever. Now more than ever, trust is at its peak premium. Hotels and resorts now need to make guests feel safe and secure. Hotels and resorts should robustly market on their new cleaning protocols and policies that ensure supreme safety for all guests. The more safe and secure a guest feels with you, the more loyal they will become. Once loyalty is solidified, they will only choose to trust you with their needs and the needs of their family and friends.
A solid way to do this is to have user-generated reviews readily available on your site. Such trusted reviews and recommendations will be effective in proving that you indeed provide a safe and secure stay for all your guests. Find ways to capitalize on people’s trust by providing incentives and discounts.
4. Have Rooming Strategy
Offer rooms that allow for exclusive group sharing and access. Chalets, villas, cabanas, and suites that allow guest to check-in and enjoy as a sole family unit is most wanted by the market. The more sure your guests can feel that their get-away is exclusive, the more safe and secure they will feel. For offered pricing plans, start offering rooms from the higher category to achieve this.
5. Per Person Rate
Hotels and resorts should now apply universal per person pricing. This will be more beneficial especially to resorts that offer all-inclusive or full board and half-board deals. Hotels and resorts should be able to fully take advantage of the perks that lie in the difference between the consumption of a single occupancy room as opposed to a family room that has four guests.
The pandemic gave businesses the tricky demand of being able to do more with less. With limited operational teams, hotels and resorts must now focus on automating tasks with generic applications. Through this, teams with limited numbers can focus on more important and pressing operational concerns. This should be sustainable and realistic as the pandemic is still upon us and there is still a significantly long haul ahead of us.
The Sun Will Come Out
Now is the time to be positive. With vaccines slowly being rolled-out across the globe, studies show clear data that shows pent-up demand to travel. As you read this, consumers are now planning their next vacation. This is evident with the peak traffic visits on different travel and hotel platforms. Deploy the following strategies to ensure that you remain profitable and ready for the big travel bubble that is ahead.