Every hotel experiences shoulder days and lower occupancy periods where there is simply not enough demand to sell every room.
However, the key differentiator between the good and the great revenue managers is what they do next. How do they ensure these rooms don’t sit empty?
Some revenue managers turn to discounting platforms like Hotel Tonight, but are getting increasingly worried about the brand implications of such platforms, read more on that here.
As an alternative, some of the more innovative revenue managers are realising that there are other ways of generating revenue from a room, aside from simply selling an overnight stay.
What if, for example, you used that empty room to allow a guest leaving that day to stay longer in their room? Or, to allow a guest arriving the next day to check-in earlier?
As you can see above, room 102 was empty on Tuesday night, why not allow Charlotte Fisher to extend her stay through an early check-in? Equally, room 105 is empty on Thursday night allowing John Watson to extend his stay through a late check-out.
More and more guests are now willing to pay for early check-ins and late check-outs due to the irregularities of global flight patterns (read more here). And as such, it can be a welcome revenue stream for hotels, and a very profitable one at that. As the room is already clean and empty no re-cleaning is required as all you’re doing is letting your existing guests stay a little longer (read more here).
After all, it’s better than your room just sitting empty.
Want to calculate how much your hotel could generate from using this technique to sell distressed inventory? Click here and scroll to the bottom of the page.