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A Bulletproof Way To Increase Hotel Revenue

2024-03-11 07:44
The hotel industry is facing many new challenges. One of them is the high cost of marketing. Competition is increasing. Booking.com commissions are high. The old marketing approaches do not bring high returns. Hotels are therefore looking for ways to increase sales without reducing their profit margin.

Hoteliers are looking for tools to attract guests back to the hotel and increase revenue. Let us talk about the most important of these tools – inbound marketing.


What is internal marketing, and why is it needed?

Internal marketing in the hotel industry is a form of marketing aimed at the hotel's employees. It is the introduction of a special system of work for employees, in which they do everything to make the guests' stay as pleasant as possible.

In internal marketing, customers are the top priority. Employees focus on meeting their needs instead of serving management or following instructions.

Many examples of such marketing can be found in the book “Marketing. Hospitality. Tourism” by Barry Urquhart, a hospitality industry management consultant, said that one day when he went to the balcony of his hotel room, he heard cries for help. A guest had accidentally locked himself on the balcony. Barry called the staff, they helped the guest, and sent him a bottle of champagne afterwards. This represents internal marketing, where hotel staff go beyond instructions to meet customer needs and solve their problems.

When internal marketing is well-organised, the customer gets more attention. It is easier and cheaper for a hotel to work with existing guests and motivate them to pay more than to attract new guests.

Below you will find the facts that prove this:

- Attracting customers to a hotel is five times more expensive than keeping them.
- If you increase customer return by even 5%, you can achieve a 95% increase in revenue.
- It is 60-70% likely to sell something to an existing customer, but only 5-20% likely to sell something to a new customer.
- Brand loyal customers are 5 times more likely to forgive mistakes, 4 times more likely to recommend the brand and 7 times more likely to try something new that the company offers.


What conditions must be met for inbound marketing to work?

Internal marketing is effective when employees focus on taking the habits and wishes of guests into account. To do this, employees must create an environment in which they can quickly obtain information about customers and learn what to offer them.


Internal marketing must be adapted to the current trends that determine the style of interaction between the customer and the hotel. Here are some of these trends:

Communicate and order online. Since the pandemic, many people have become used to getting information, ordering goods and using services online. Room bookings should also be made online, preferably via an app. This also applies to the hotel's internal services – ordering food and room cleaning. It's also important for employees to have a service that helps them to interact quickly and conveniently with customers, keep track of them and anticipate their wishes.

A personalised customer loyalty programme. It's important for customers to be offered things they are interested in and help them save money. And employees need a service that helps them track the status of cashback and offers with each customer.

WhatsApp marketing and chatbots. SMS and phone calls are a thing of the past – people spend a lot of time on messengers. It's a great way to build relationships with new customers and keep in touch with old ones by involving them in promotions and informing them about discounts. Employees need to learn how to communicate with customers through channels they're familiar with.

Virtual reality. The pandemic has made it possible, for example, to try on clothes or make-up online – the same can and should be implemented in a hotel. For example, virtual tours of a hotel can help a potential customer make a booking decision.

Big Data. Hotels receive hundreds of guests every month, creating a huge database. By analysing it, you can learn a lot about the customers and their needs and thus increase the hotel's turnover. For hotel employees, such data is a great way to analyse trends in the use of hotel services and offer customers what they really need.

Automation of all processes. In a hotel, hundreds of processes take place every day, involving dozens of employees – in order not to miss anything, everything needs to be captured and automated. In this way, the management process becomes clearer and the hotel employees themselves are effectively assigned to the currently relevant areas of activity.


All these trends can no longer be taken into account when marketing your hotel using outdated methods – you need fundamentally new solutions.


How to increase hotel revenue with an IT solution for internal marketing

To increase revenue and retain customers, you can now use intelligent digital solutions: a loyalty programme, a task tracker that improves service quality, a digital room service.

Implementing these tools can be time-consuming and requires staff training, but it pays off: It lowers the cost of operations and increases the average cheque of each customer.

The good news is that there are comprehensive solutions that make it possible to quickly connect and customise digital services to the needs of a particular hotel. The same loyalty programme can be customised easily.



Hoop is one of such solutions. It can be quickly integrated into hotel operations and fulfils its tasks from day one:

- Increases turnover

- Improves service quality

- Increases the loyalty of the hotel's existing customers

Task tracker for hotel employees

Hoop is a task tracker for hotels that can be connected to CRM. It helps with the automation of hotel processes.

The tracker helps to save labour time and staff, efficiently load employees with work and track customer complaints and requests. All reports and statistics on the hotel employees and operations are visible at a glance, which allows you to efficiently distribute the workload and reduce the number of staff without harming the business.

Product to increase sales of hotel services

Hoop is an add-on to CRM, a tool required by hotels that offer room service, such as food delivery and housekeeping. With this service, the average order value per customer can be increased.

Hoop works as follows: The hotel prints out QR codes and hangs them in the lift and in the rooms. The customer scans the code and accesses an electronic menu containing all the hotel's services.

Personalised suggestions are made to the guest based on their preferences. Instead of ordering food from the delivery service or by phone, they can order it via the hotel's own app. That's extra money for the hotel.

Customer loyalty programme

The loyalty programme is also an addition to the CRM, which works via the app using a QR code. This service incentivises customers to return to the hotel.

It works as follows: The customer scans a QR code and receives bonus points as a gift, which they can spend on additional services provided by the hotel. The customer receives points for payments (the percentage of points depends on the settings). The customer saves these points and spends them later at the hotel.


Conclusion

Now you know what internal marketing is, how it works and how you can increase its effectiveness with the help of a comprehensive IT solution.

It's time to attract customers to your hotel – choose Hoop to do it easier, faster and more efficiently.

Book a product demo right now.