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5 Easy Ways Small Hotels Can Boost Revenue

BY Rebecca | 10 March, 2015 | no comments

Running your own small hotel is incredibly rewarding. However, it does not come without its challenges. For starters, getting any small business up and running and ensuring that it is as profitable as possible, is no easy task.

A myth that has been going around the hotel industry for years is that if you lower your room rates you can boost your growth. But, sadly, this does not work and can cause all sorts of problems for the long-term success of your business. But are there other ways you can boost your revenue?

For small hotels, the best way to boost your income is to increase your room occupancy and reduce the cost of your expenses. Of course, this is easier said than done.

To help you to boost your small hotel’s revenue, we have put together five handy tips below:

  1. Up-Sell

Up-sell at every opportunity. Tempt your hotel guests into spending a little more by offering them the chance to add on some well thought out extras to their stay. Things such as a luxury breakfast or a romantic package are popular with guests. You could also offer your guests the chance to upgrade to a nicer room for a slightly higher rate.

Make sure to let your guests know about all the extras you have on offered to them. At the reception desk advertise the extras you offer, such as a car rental service or tickets to events or outings. Offering these type of extras to guests, will not only increase your revenue but will also give your guests a better experience.


(Photo source)

  1. Offer holiday products

Guests love it when hotels provide guests with mini soaps and shampoos to use, especially ones that are small enough to take home. A recent study has shown that when guests take your shampoos and other products home with them, it shows that you have done a good job choosing the right products.

To increase your revenue, why not consider selling some of your products at the front desk? Bottles or shampoo, conditioner, soaps and moisturisers, are good choices. You could also sell the towels and bed linen you use in your rooms, read more information here.

  1. Swap to LED light bulbs

LED light bulbs last ten times longer than regular light bulbs, save energy and help to reduce your carbon footprint. Plus, they are fantastic for helping you to reduce your expenses.

Have a look at the LED options available to you, and choose the type that works best for your business.

  1. Have an energy assessment.

Having an energy assessment will allow you to identify areas where you are overspending, allowing you to find ways to cut costs.

Make sure that everything that uses energy or gas is checked for efficiency, and you will soon find ways to save and reduce your costs.

  1. Put a customer referral scheme in place

Satisfied guests should be encouraged to refer their friends and family to your hotel. Offer guests who refer a friend or family member, a small discount on their next stay. This will encourage your guests to refer new customers to you and return to stay with you again, boosting your revenue.

Send each a guest a post-stay email. Thank them for visiting and put all the details of how the referral scheme works and how they can access their discount code in the email.


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