Small improvements can be decisive in a strategy and offer great results in reducing costs.
Ensuring that current operations are as simple as possible and that all spaces are being used to their maximum capacity is the first step you should take when considering how you can be more successful in your business.
Here are 9 areas where you can focus on maximizing your LA profits.
1. Adjust the price
Supply and demand. Keep an eye on the market to see when demand is highest in order to increase revenue. When demand is low or none, you should lower the price.
2. Special package offers
How to make the stay at your LA even more attractive? Partnerships. Partner with local guided tour companies, offer special meals at a nearby restaurant? Thus it will offer a complete experience.
3. Up-selling and cross-selling
Up-selling and cross-selling are increasingly popular marketing techniques for maximizing profits. When you have different types of rooms, you can use the up-selling technique (eg, when a guest marks the basic room, you can ask if you want an upgrade for a small fee). Cross selling is about small extras, such as a bottle of Portuguese wine, an extra bed or a taxi to the airport, and with that an extra profit.
4. Extend your stay
Sunday nights are often the most difficult to sell. Try to make these evenings more attractive by, for example, offering a discount or a special package. Increasing the length of your stay will help increase your profit.
5. Optimize the requirements for each role
This brings us back to efficiency. It should be clear to the cleaning service team what is expected of them. If a room has only been used for one night, it won't need to be cleaned or prepared as deeply as a room that has been occupied for a week. The same principle applies to the number of people in a room. By setting standards, your team can do more and faster.
6. Go to the small details
Taking an interest in energy efficiency can have significant long-term benefits for your LA. Consider installing occupancy-sensitive heating and cooling systems that adapt to when people are present in the room. Low-energy lights, such as LEDs, are another great option, as are motion-sensitive lights. Reducing energy costs is an easy solution and can have a positive impact on the final result.
7. Save on accessories and furniture
Many interior decorating providers have packages and bulk offers that you can take advantage of. While it may be tempting to get unique and personalized designs, the costs may outweigh the benefits. It is something that you should carefully consider and that may depend on your target market. For example, business travelers are less concerned with a different design.
8. Find a purpose for underused spaces
If there is space in your AL that has no function other than breathing space, consider using it to generate profits. It doesn't have to be something permanent. For example, from time to time there could be a masseuse, an exercise class or even a cooking class in that space. This will encourage guests who are already in your LA to spend more time at your establishment than they had anticipated.
9. Organize events and activities
Similar to the one discussed in the previous point, if you have space to organize special events, you must do so. Get in touch with potential partners who can hold seminars, workshops or whatever you think is relevant to your establishment. Thus, you will have a source of revenue that does not come directly from the guests staying in your LA.
To know how to stay still tips for your Local Accommodation read our Recuperation plan.
