We delivered over 1 million in room rate sales with just 2 strategies during the low season
With the right strategies, your hotel can increase turnover even during the low season.
The low season in hospitality is the period of time when the number of hotel room bookings is lower than normal. This can occur for various reasons, such as unfavorable weather, school vacations or a period of economic recession.
During the low season, hotels often offer lower rates to attract customers and increase room occupancy. In addition, they can also offer special promotions and packages to help attract customers during this time.
These are some of the strategies that the vast majority of hotels use during the low season, but as this is a period of high alert, we need to go beyond conventional strategies and use efficient methods to get through this period without the cash flow of the business suffering.
Have you ever heard of Hotel Rate Anchoring?
Hotel rate anchoring is a technique used by hotel sales professionals to influence customers’ perception of the value of an accommodation. This is done by presenting a higher rate first, so that a later rate looks more attractive in comparison.
For example, presenting a rate of R$200 per night, followed by a rate of R$150 per night, will make the latter appear more attractive due to comparative price anchoring.
Here are some tips for anchoring hotel rates:
- Highlight the higher rate: Present a higher rate first, so that a later rate looks more attractive in comparison.
Use technology resources: Use technology resources, such as online booking systems, to highlight the most attractive packages and rates to customers. - Offer special promotions: Offer special promotions, such as limited-time discounts, to help attract customers during the low season.
- Provide a clear presentation: Provide a clear and organized presentation of rates and packages to avoid confusion and increase customer confidence in the booking decision.
Remember that rate anchoring must be used ethically and transparently so as not to damage your customers’ trust.
Accompanying Fare Anchoring, we also use the Revenue Management strategy
The Revenue Management strategy is a technique used by companies to maximize profit by managing the supply and demand of their products or services.
Some tips for implementing a Revenue Management strategy include:
- Monitor demand: Continuously monitor demand for your products or services to understand market dynamics.
- Analyze historical data: Analyze historical sales, occupancy and price data to identify patterns and trends.
- Segment the target audience: Segment the target audience to understand the different needs and preferences of each group and customize your pricing strategy.
- Adjust prices frequently: Adjust prices frequently to maximize profit and respond to changes in demand.
- Offer strategic promotions and discounts: Offer strategic promotions and discounts to attract customers during periods of low demand and encourage early booking.
- Use Revenue Management technology: Use Revenue Management technology to automate data analysis, demand forecasting and price adjustments.
The Revenue Management strategy is a valuable tool for maximizing profit, but it is important to remember that it is necessary to balance increased revenue with customer satisfaction and long-term retention.
The Results of Increased Sales even during the Low Season
Planning is crucial to the success of low season hotel management, as it allows hotel companies to prepare for periods of lower demand and take advantage of them effectively.
During this period, it is important for hotel companies to focus on attracting customers who are willing to pay for the comfort and services offered by the hotel.
In addition, hotel companies must have an effective marketing plan to attract new customers and retain existing ones.
It was with this in mind that our team of experts devised the best strategies to maximize our client’s turnover during the low season (November, December 2022 and January 2023).
The Mobile Rate is a special discounted rate, visible only when someone uses our app or accesses the website via a mobile browser. We offered the Mobile Rate strategy in conjunction with Rate Anchoring and this was the result:
- Strategy used: Mobile Fare
- Discount offered: 10% exclusively for mobile bookings
- Period open for bookings: October 20, 2022 to January 20, 2023
- Bookings converted: 3,426
- Daily rates sold: 6,284
- Average daily rate: R$ 210.97
- Gross revenue: R$1,325,746.99
In addition to the Mobile Rate strategy, we also use another strategy. The “last minute” strategy in the hotel industry is a sales strategy that offers significant discounts on rooms available at the last minute.
- Strategy used: Last Minute
- Discount offered: 10% exclusively for last minute bookings, not cumulative
- Period open for bookings: October 20, 2022 to January 20, 2023
- Bookings converted: 875
- Daily rates sold: 1,223
- Average daily rate: R$218.57 (4% increase in the Mobile Phone Tariff)
Gross revenue: R$267,311.11
You may be wondering whether selling during the low season with discounts can be a good strategy. Yes, as long as it’s used intelligently and on the right sales channels, it can save your hotel’s turnover even during the low season.
PS: correcting the content, the result actually exceeded 1.5 million 😎