How did this Hotel in Amsterdam Boost ADR with Zero Incremental Cost?

Hello Everyone,

Welcome to the first post of this mini-series about The Teleport Hotel in Amsterdam.

The Teleport Hotel is a 143 bedroom leisure hotel in Amsterdam a run by David and Maikel. Like many hotels around the world, they achieve high occupancy year round, but they are still under pressure to increase revenue in this challenging climate of OTAs monopolising their booking traffic. So they began to think, how can they make better use of their existing asset?

However, they didn't have a huge budget for marketing so any solution had to drive revenue without an upfront cost. They started to brainstorm...

Early Arriving Guests

One problem they have always faced is early arriving guests. Amsterdam Airport, like all major airports around the world, experiences a lot of early arriving flights, due to long haul flights arriving from the US and Asia. As a result, a lot of their guests had been arriving at the hotel early from 9-10am onwards wanting to check-in early.

Early Arriving Flights into Amsterdam

How Had They Currently Been Managing This?

To date, David and Maikel had simply been offering the guests an early check-in on arrival if their room was ready. However, this wasn't ideal as it was done on a first come first served basis. Rather than on a needs basis. For example, a business traveller who really needed a shower and a rest before an important meeting would be denied access, just because another guest, who perhaps didn't need the room as much, arrived 5 minutes before them.

This esulted in Really Frustrated Guests

The Frustration of Not Getting an Early Check-in

Put yourself in their guest's shoes. They were arriving on a long haul international flight and had barely slept. All they wanted to was to have a shower, change and head to their important meeting. Only to be told, "sorry check-in isn't until 3pm". Not a great first impression. On one such occasion, the resulting argument left their front desk agent, Emily, visibly distressed. Was there an opportunity here?

Their Strategy

David and Maikel started very simply, they began emailing guests the night before they arrived to offer them early check-ins if they were arriving on the early morning flight at a price of €10. 

If the guests were interested they would simply reply confirming they were happy paying the €10. If they weren't interested, they would simply ignore the email.

It started off pretty well, in fact too well. 

They were selling more early check-ins then they could offer and their housekeeping team had to work overtime to get the rooms ready.

This frustrated guests as they arrived with the promise of an early check-in but their room wasn't ready. Moreover, it was adding a lot of manual work to their already stretched front desk team as they had to send out and monitor the replies of these emails each day. They also weren't sure how much to charge for each early check-in.

It started to become a little overwhelming for the whole team, but fortunately, they found answers to all these of problems and chanced upon some strategies that improved their revenue generation even more.

In the next post I'm going to take a deep dive into those strategies and why they were so effective.

Any ideas what they did? I would love to hear what you think. Or have you got an innovative revenue technique that you're proud of? Leave a comment below and you might be featured in the next series of posts!

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