Empty rooms are an issue at every hotel.
There are very few hotels around the world that can claim to achieve 100% occupancy every night of the year. It’s the very nature of our business that despite our best efforts marketing the room through our own direct website, through the OTAs and through the tour operators. Sometimes there's just not enough demand to sell every room.
So what do you do now? As a revenue manager you're under pressure to generate as much revenue as possible.
Some hoteliers turn to the discounters. Hotel Tonight and the alike. Offering the room for a substantial discount. A 10%, 20% or even 50% discount in some situations. It’s better than the room sitting empty, right?
However, some hoteliers are starting to worry about the long-term impact of this technique, both to their brand, being seen as a discounter, and its impact on their guest booking behaviour. If guest's realise that they can get the same room for half price if they just wait, they will do exactly that.
We think there’s another way.
Due to more and more of your guests traveling in from overseas, more and more are arriving and leaving at awkward hours. As a result, the demand from guests wanting to extend their stay by a few hours through early check-ins and late check-outs to accommodate early arriving or late leaving flights, is rising substantially.
So instead of discounting your rooms, try using these same empty rooms to upsell early check-ins and late check-outs to other guests arriving on early morning flights or leaving on late afternoon flights.
Not only is it a great opportunity to drive revenue, but it also increases guest satisfaction as they no longer have to wait until 3 pm to check into their room after a long flight.
Discounting rooms vs. early check-ins - a revenue comparison.
Below we have compared the revenue potential of this technique in comparison to discounting. This is assuming a $200 a night hotel room.
As you can see, once the costs are factored in, the revenue potential of this technique is actually substantially higher.
And not only is this a great opportunity to drive revenue from empty rooms, it also allows you to avoid the brand implications of discounting and increase guest satisfaction as you’re catering to your guest's individual needs.
Want to know how much money you can make from this technique? Head to www.hotelflex.io and fill out our free revenue calculator.