10 Ways to Improve a Hotel’s Bottom Line

A few years ago, I met a General Manager at a struggling Resort who boasted about his ability to "use the scissors" because his "finger never trembled". Nowadays, turning around a hotel's performance is quite a challenge. Management and staff must be aligned when it comes to daily operations, cost controls and customer service. It is important to balance and control costs while working to increase revenue in order to remain profitable. Increasing revenue takes work (coffee :) ). The success of your team's efforts should be reflected in measurable increases in occupancy rates, ADR and RevPAR . Your efforts should target and attract individual travellers, corporate clients, and increase sales for events, banquets and groups in general. The following 10 ideas can help you increase sales and control costs:

1. Keep employees happy and encourage them to become salespeople. Your employees are your most important assets. It is important to keep them happy and focused on delivering unique guest experiences. Encourage your team to find ways to reduce costs, increase revenue and maximise customer service. Reward them for their ideas and efforts. Happy employees engage positively with guests.
2. Deliver exceptional service. Satisfied guests pay more. They will tell their friends and family about their experience. The internet has created a world of instant feedback, both positive and negative. An unhappy guest can lash out with negative reviews. Keep your guests happy by providing first-class service.
3. Use technology. Do not miss the opportunities technology offers to maximise sales, reduce distribution costs and improve resource-intensive internal processes.
4. Create high perceived value. Guests are willing to pay more if they feel they are receiving more value for their money. Actual value is less important than perceived value. If your guests feel that the service you are offering is worth 20 but actually costs you 5, that is a great profit. Also, try to improve your hotel's rating on online portals. This can make a major difference in how your hotel is perceived in the market, and guests will logically be willing to pay more.
5. Work to increase point-of-sale revenue opportunities. Partnering with local suppliers such as car rental companies, restaurants, theme parks and concert organisers allows you to sell additional services to guests. Use your reception desk, shop or another area to sell services or offer special discounts to guests. Develop a product line under your own brand, such as shampoo, soaps, T-shirts, bathrobes or bed linen, to sell to guests.
6. Market directly to your guests. Social media can help you stay in touch with former guests and engage with new prospects. Build relationships, create special offers for returning guests and develop a newsletter to keep your brand top of mind.
7. Audit everything Hotels can spend up to 50% of their operating budget on heating and cooling. Switching to LED lighting can save a great deal of money on electricity costs. Audit everything: energy costs, technology, telephone systems and supplies that may offer savings opportunities.
8. Encourage guest referrals. Encourage satisfied guests to share their opinion about their experience. Reward them for doing so with discounts on their next stay, a complimentary amenity, etc.
9. Make your hotel stand out from the competition. Give your guests a reason to choose your hotel.
10. Be optimistic. It is not easy, but neither is it impossible, which is why it is essential to believe in yourself and in what you can convey to your team in order to achieve it. If you have doubts, that same doubt will spread throughout the team.

Even in a competitive environment, it is possible to make changes that will increase your profitability. By using creative and proactive solutions, you can reduce operating costs and increase revenue without disrupting daily operations or making massive cuts.