How does technology increases revenue of hotel?
There is a lot to talk about in the industry about ways hotels can increases revenue through technologies.
Technology trends are speeding up exponentially. It is because new technologies are better than the previous ones.
But how do better technologies improve the hotel revenue? They directly don’t do it, they simplify the guest’s journey
And deliver personalized experiences. Hence, customers will feel good and will be reluctant to visit again.
Moreover, they share their wonderful stay experiences with their friends and family through word of mouth or on social media platforms.
Thus, leading to an increase in bookings.
Likewise, people in the hotel industry is preferring newer and better technologies to maximize the revenue of both small hotels and global brands.
Let’s understand how technology indirectly increases revenue of hotels:
Streamlines booking process
Technologies like cloud hotel PMS, mobile apps, booking engines, and channel managers simplify the booking process.
The chances of errors and ultimately loss in bookings reduce significantly.
A hotel PMS automates tasks, allowing staff to quickly take reservations and increasing the efficiency of the front desk.
The hotel mobile app manages operations of the hotel from smartphones.
Lastly, the channel manager sells your rooms on multiple OTAs at the same time it updates inventories on all the channels in real-time.
Hence, reduces the risk of overbooking.
Improving employee productivity increases revenue
Install online booking solutions to improve staff productivity.
The solutions are easily understandable and highly accessible in the market.
Using technology in hotels will improve the staff/employees’ productivity.
The staff’s efficiency increases because they get free from performing tasks manually.
Now, they don’t have to do the cumbersome day-to-day tasks of the front desk which are quite time-consuming.
Thus, employees can dedicate more time to serving guests’ needs which will improve client servicing.
Ultimately, it leads to the hotel’s profitability.
Help in decision making
Use technology for managing revenue in hotels. Without appropriate tools, decision-making of room rates will be quite difficult.
And the success of a business also relies on it.
Hence, use a revenue management system to estimate demand and make rate recommendations based on demand trends and inventory levels.
To understand the demand trends, it analyzes competitor rates, historical rates, and market dynamics.
A strong revenue management system will automate the process and generate rates that maximize revenue and profit.
Through this data, easily determine the rates currently offered at competitor hotels.
Thus, we can say hospitality solution tools help in making wise decisions.
Better upsell and cross-sell opportunity
Upselling and cross-selling both can use interchangeably but offer distinct benefits.
In upselling, you encourage customers/guests to purchase a higher-end product than the one he/she is purchasing.
Whereas in cross-selling, you invite guests/customers to book/buy related or complementary items.
For instance, in upselling, you may ask guests to switch their booking from a general room to a luxury room.
While in cross-selling, you may ask guests to add more amenities.
By going through their definition and example, you must have understood they are crucial for increasing hotel revenue.
Hence, you need data to know guests’ preferences and on that basis pitch them products that they are most likely to buy.
Certain technologies enable you to collect the correct data in the proper format, evaluate it, and target customers accordingly.
So, integrate those tools into your hotel’s infrastructure to improve sales, customer satisfaction, and revenue.
Effective marketing increases revenue
Marketing is crucial for every business. You cannot deliver more if your metrics are not right.
Hence, use technology to do so.
How technology is useful?
- It allows you to collect and store huge data in the appropriate form through genuine resources.
- By using that data you can understand your target audience.
- You can run campaigns by sending marketing emails, text messages, or advertising on the social media feed of customers.
- Give a glimpse of your hotel through virtual reality. Post these on your social media platforms to attract customers.
- Google Ads and Facebook Ads are two platforms that can help you increase your digital marketing efforts. You can target your adverts based on your knowledge of your target audience, their tastes, and their geography.
- There’s WhatsApp marketing, which is quite popular recently. You can send personalized text messages directly to the WhatsApp inboxes of your previous/current/potential guests.
- Furthermore, using beacon technology, you may deliver customized advertisements to people based on how close they are to your hotel location.
Increase the concierge’s efficiency
Concierge services are for people who don’t want to spend time in research and need someone to help them plan things to enjoy life.
Moreover, it is also for people who want to enjoy exclusive services and events and gain insider insights and receive great service.
Hence, using it is helpful in developing a good bond with the hotel guests by understanding their needs and preferences.
Thus, it will enhance their experience.
But it is not possible if booking methods are inefficient and unavailability of hotel concierge software.
All activity bookings are made with the press of a button with hotel concierge software, giving your concierge more time to become closer to your guests.
They are able to engage with customers actively and gain a greater understanding of their requirements.
They also have the opportunity to sell them more auxiliary services while making pertinent recommendations.
Conclusion
Travelers want services that are technology-driven, it is not only convenient to use but also provide a better experience.
And due to their changing demands and preferences, hotels are switching to advance technologies.
Using advanced technologies will turn out to be useful for both guests and hoteliers.
It will streamline the booking process and improves the productivity of employees.
One can use tools to make effective decisions regarding charging rates.
Moreover, you can have the opportunity to upsell and cross-sell, and you can brand your hotel among customers effectively.
Ultimately, it increases revenue.
If you want to learn about the functionality of QloApps then you can visit this link: QLO Reservation System – Free Open-Source Hotel Booking & Reservation System
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Moreover, you can raise a ticket to connect with our experts for any assistance.