Secrets to improving accommodation business revenue
If you’re selling an accommodation business in the next couple of years, you will want your P&L sheet to look as healthy as possible. A good way to improve motel revenue – or revenue at your caravan park, guest house or Management Rights business – is to work at bringing in more guests midweek and outside school holidays.
Follow these essential tips to find out how to promote an accommodation property off season so you can create a successful revenue management strategy and prepare your accommodation business for sale.
Tip 1: Market to the season
If business is slow at certain times of the year, there are methods to increase revenue by making the season an asset. Look at the activities available in your area and promote them, such as winter sports, kids’ activities, Christmas parties or Easter egg hunts. Pay particular attention to any events taking place midweek – this is a great place to start if you want to know how to get more bookings.
Tip 2: Partner with local businesses for holiday packages
Other local businesses can hold the key to how you could create added value in your motel or holiday accommodation. Reach out to restaurants, spas and businesses offering sports, sightseeing tours and activities in your area, with a view to creating holiday packages.
This offers a great opportunity for you and other businesses working to improve the hospitality industry in your area. As the various offers are wrapped up in a package, you can improve your occupancy levels without needing to discount your nightly rate.
Tip 3: Promote ‘staycations’ and business travel
Many people like to take short breaks in places they don’t have to travel long distances to reach. Promoting your accommodation business to local people can help you access the growing ‘staycation’ market, especially if the deal is part of a special event package. Ideas include Valentines Day, music events and so on.
You also need to remember business travellers who need somewhere to stay midweek in your area. Knowing how to sell rooms to corporates is essential if you want to achieve what is a good occupancy rate outside of weekends and holidays. If you can guarantee decent and free wi-fi access alongside a table and chair in rooms, you’re halfway there.
Tip 4: Use social media to grow awareness
Lack of knowledge is one of the major reasons for low occupancy in accommodation, so you need to improve your social media marketing skills if you want to know how to make a management rights business more profitable. These days it is easier than ever to reach potential guests online, and it is extremely cost-effective.
Social media goals for Management Rights businesses, motels and holiday parks can include raising awareness of your accommodation business and growing your following by offering special packages to your social media followers and encouraging them to visit the area by sharing interesting local stories.
Tip 5: Consider a renovation
If you have an accommodation business for sale and you want to achieve the best price, whilst also improving your occupancy rates, it can make sense to renovate. Make sure you understand your market and what your customers are looking for before choosing your design ideas. Above all, it is essential to get professional advice from a business broker before renovating so you don’t overcapitalise.
Find out more about improving your revenue out of season
At Accommodation Business Brokers, we have all the experience and industry knowledge you need to make your hospitality business as profitable as possible. We can also advise on selling a motel, small hotel, guest house or caravan park, and selling management rights to accommodation businesses, ensuring you get maximum rewards from your business. Please contact us if you would like more information.