Acing the Revenue Game

Hotels are looking at new avenues to generate revenues that go beyond rooms and food.

- BINDU GOPAL RAO

Hotels traditionally generate revenue through a combination of sources. The core of their business lies in room stays, where guests pay for overnight accommodation and food and beverage services at restaurants, bars, in-room dining, and events.

NEW VISTAS

In today's dynamic hospitality landscape, hotels thrive on a diversified revenue generation strategy. While room rates remain the cornerstone, true success hinges on deploying effective pricing models. This necessitates a shift from static structures to dynamic ones that adapt seamlessly to fluctuating demand and seasonal trends. Furthermore, hotels can strategically target specific market segments to optimize their business mix. Accurate forecasting becomes the lynchpin of this strategy, empowering hotels to proactively adjust pricing and inventory management, ensuring they capture maximum revenue potential.

"Additionally, hotels can cater to long-term stays by providing special packages or discounts, which appeal to remote workers or digital nomads. Partnering with local businesses for tours, activities, or bundled packages can provide a unique selling proposition for guests. Loyalty programs and monthly or annual memberships for discounted stays, food and beverage offerings, or spa services can build guest loyalty and create recurring revenue streams," says Rayan Aranha, Vice President, Hospitality, Brigade Group.

MAKING A DIFFERENCE