How to Improve Hotel Sales for Small Properties?
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Small hotels need effective sales strategies to improve their revenue and competitiveness. Due to labor shortage problems, hotel sales managers face the challenge of meeting their sales targets and maintaining consistent occupancy with limited resources.
Therefore, the big problem is how to improve hotel sales for small properties. Read the blog post below to deeply understand how small hotels can attract more guests, increase direct bookings, and maximize revenue despite must-face challenges. Some methods include implementing essential sales strategies, enhancing online presence and visibility, offering unique experiences and personalized services, strategically leveraging online travel agencies (OTAs), etc.
This drives revenue and provides guests with the lively atmosphere they expect. It is important for small hotels to implement sales strategies that work best for their target market as well as for their local destination to drive the most room sales at their individual property.
Why Small Properties Need to Improve Their Hotel Sales Strategies
The hotel industry is highly competitive despite its profitability. There are countless hotels worldwide, and with a proper strategy for improvement, small properties can stay caught up and stay caught up. Before providing effective methods, let’s delve into the details and understand why small properties need to enhance their hotel sales strategies.
Increased competition from industry competitors
The world’s desire to travel is on the rise. According to a Statista study, global employment within the travel and tourism industry experienced a slight increase in 2022 compared to the previous year, after a significant decrease due to the COVID-19 pandemic. Predictably, this number is projected to reach 320 million by 2023.
The rise of digitalization has contributed to the online travel industry. Major online players like Booking and Expedia have emerged, creating a surge in travel demand. This has led to an increase in larger hotels and online travel agencies worldwide, resulting in heightened competition. Smaller hotels must enhance their sales strategies to stay competitive.
Limited marketing budgets and resources
It’s common for small hotels to have varying marketing budgets and resources. According to a Gartner study, marketing budgets typically comprise around 11% of total revenue. To determine the appropriate funding for their hotel, many hoteliers seek the expertise of a hospitality marketing agency.
As we can see, the budgets of smaller establishments are often much smaller when compared to those of larger establishments with more resources, making it highly challenging.
Therefore, smaller hotels need to adopt effective sales strategies to stay competitive. With an intelligent strategy, small hotels may be able to keep up and even face the risk of going out of business.
Example: A small boutique hotel faces challenges attracting guests due to limited brand recognition and marketing capabilities. Additionally, they may face budget constraints without significant investor backing or financial safety nets, leading to fewer staff members, quality service, etc. As a result, these hotels must implement effective sales strategies to attract guests and remain competitive in the market.
5 Challenges Small Hoteliers Face
Limited visibility and brand awareness
Due to various factors, small hotels often struggle with limited visibility and brand awareness. Among them is A limited marketing budget that hinders business promotion and differentiation in a crowded market.
These challenges can lead to several consequences, including difficulties attracting guests and remaining competitive. With effective sales strategies, small hotels may experience higher occupancy rates, decreased revenue, and ultimately, may even go out of business.
Difficulty in competing with larger hotels' pricing and promotions
Small hotels may not have the funds to invest in expensive and intricate revenue management software. Consequently, optimizing their pricing and staying competitive with larger hotels can be challenging for them
Lack of resources for marketing and advertising efforts
Insufficient funds can result from a company experiencing losses or ineffective marketing campaigns that don’t provide a return on investment. This can limit the potential of marketers and hinder a company’s growth
High commission fees from third-party booking channels
Third-party booking channels like online travel agencies (OTAs) can be helpful for small hotels looking to increase their exposure and attract more guests. These channels help small hotels reach a wider audience and increase bookings.
However, there is a downside to relying solely on third-party booking channels. High commission fees can make it difficult for small hotels to profit. Therefore, small hotels should consider balancing third-party booking channels with other sales strategies, such as direct bookings.
Limited knowledge of online sales and marketing
Small hotels may need more online sales and marketing knowledge for various reasons. Online sales and marketing can be intricate and requires specialized knowledge and skills. Small hotels may need this expertise to market their business online and attract guests.
Moreover, small hotels may have a small staff and limited resources, making it difficult for them to dedicate the necessary time and effort to learn about and implement successful online sales and marketing strategies.
Top 5 Cost-effective Ideas to Increase Hotel Online Sales
Enhance your online presence and visibility
Boosting your hotel’s online sales without breaking the bank, and enhancing your online presence and visibility, is a great place to start. Here are three effective strategies to help you achieve this goal:
When attracting potential guests, your hotel website is the initial point of contact.
- User-friendly, aesthetically pleasing, and contains all the necessary details for booking.
- Use high-quality images and videos to highlight your property and its amenities.
- Improve mobile-friendly, as many guests will access it from their smartphones.
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Enhancing your hotel’s online visibility in search engine results can be achieved through search engine optimization (SEO).
By using relevant keywords and meta tags on your website, search engines can better understand your hotel’s offerings and rank it higher in search results.
Research the keywords potential guests use to search for hotels in your area and incorporate them into your website’s content, meta tags, and URLs.
Social media platforms like Facebook, Instagram, and Twitter can effectively connect with potential guests and advertise your hotel. Posting pictures, videos, and updates about your property on social media can help you gain more guests and boost your online sales.
It’s essential to engage with potential guests by responding promptly to their comments and messages. Consider running social media contests or promotions to increase engagement and attract followers.
Offer unique experiences and personalized services
Some more unique selling points that hotels can have:
- Exceptional customer service
- Unique architecture or design
- Special amenities or services
- Environmental sustainability
- Local partnerships or experiences
- Historical significance
Identify what makes your hotel stand out and emphasize these distinctive features on your website, social media, and other promotional materials. It can draw in guests who are seeking a unique and unforgettable experience.
Use guest data and feedback to gain insight into their preferences and craft customized packages or experiences that cater to their needs.
For instance, you can provide a romantic package for couples, a family-friendly package for those traveling with children, or a wellness package for guests seeking relaxation and rejuvenation.
Implement a direct booking strategy
To encourage guests to book directly through your website, you can provide exclusive perks or discounts unavailable when booking through third-party channels.
For instance, you could offer guests who book directly through your website complimentary breakfast, room upgrades, or discounted spa services. Motivate more direct bookings by clearly communicating these perks and discounts on your website, social media, and other marketing materials.
Use a dependable and user-friendly booking engine that lets guests check room availability, select their preferred options, and complete their booking with just a few clicks.
Additionally, provide clear and transparent pricing information that includes all taxes and fees, so guests can easily understand what they’ll be paying.
Finally, use a secure payment gateway to process payments and safeguard guest data.
Leverage online travel agencies (OTAs) strategically
Small hotels can benefit from utilizing Online Travel Agencies (OTAs) to increase bookings and reach a wider audience. Using OTAs strategically is essential to attract guests who may have yet to discover your hotel.
Research the most popular OTAs (Booking.com/ Expedia/ Airbnb/ Hostelworld/ Agoda/ Vrbo/ Hotelbeds) and ensure your hotel is listed on these platforms. Monitoring your OTA listings is essential always to be up-to-date and accurate.
OTA listings can be achieved by using attractive descriptions highlighting your hotel’s unique selling points and amenities.
Additionally, including high-quality photos that showcase your property in the best light is crucial. To appeal to price-sensitive guests, ensure your pricing is competitive with other hotels in your area.
Focus on guest satisfaction and reviews
Ensuring guest satisfaction is crucial for generating repeat business and positive referrals. Offering exceptional customer service is essential to leave a lasting positive impression on guests and encourage them to revisit your hotel. Therefore, training your staff to consistently provide friendly, helpful, and professional service is vital.
Positive reviews and testimonials can help attract more guests to your hotel. It’s a good idea to ask happy customers to write reviews on well-known review sites like TripAdvisor, Google, and Yelp, as well as on social media platforms like Facebook and Instagram.
Conclusion
So, possessing a substantial budget or a sophisticated marketing team is unnecessary to enhance your hotel’s sales. What is required is a thorough understanding of your customers, your competitors, and your strengths.
It is feasible to transform your modest property into a prosperous enterprise that attracts loyal patronage with these tips we mention in the blog post. It supports augmenting direct bookings, elevating your online reputation, and delivering unforgettable experiences!
