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Increased occupancy and ADR at your B&B

The 6 Best Ways To Drive Occupancy And Increase ADR At Your B&B

Wednesday, September 20th, 2017

High occupancy rates are key to ensuring good financial performance for your B&B.

This may feel like a unscalable task when both time and money are limited, but there are very simple and affordable steps hoteliers can take that will help you take a big leap towards increasing ADR(Average Daily Rate) at your property.

Here are our 6 favourite tactics…

1. Know Where You Sit With The Competition

Work on ensuring your pricing is on par with your competitors by using your property management software to draw up essential hotel reports.

Keeping on top of what the competition are charging will give you more context when setting your own rates.

You can also look at extra services your competitors are offering, these ‘in-demand’ upgrades could contribute to increasing ADR at your B&B.

2. Monitor Your Occupancy Levels And Local Events

Use reporting to monitor when your occupancy rates have been particularity high, then replicate what you did during this time for periods of expected low occupancy.

During peak times remember to follow revenue management best practice; as occupancy rates increase your rates should as well.

During low occupancy, know what is going on in your area and prepare a market strategy in advance. This will allow you to advertise to guests already looking for accommodation. For example:

3. Be Smart About Room Rates And Advertising

Rather than charging more for a certain room that automatically comes with dinner and a car park, sell these as extras that can be added onto any room.

Placing your features as extras will mean guests can spend more on things they’d prefer without feeling like they have to book a ‘more expensive’ room.

Remember, last minute arrivals and walk in guests should always be charged at a higher rate.

4. Train Your Staff To Upsell

If a customer has booked a basic room advise your staff to encourage guests to spend more on arrival!

Up-sell packages that really cater to the individual, for example; “I see it’s your anniversary! Would you like upgrade to the honeymoon suite?”.

5. Audit Your Booking Channels

You should regularly monitor your connected OTAs to ensure you’re getting the best performance from the channels you partner with.

If one site is performing better than another make note of why that is, and improve your remaining connections accordingly.  Sometimes it can be as simple as updating property images.

6. Implement Length Of Stay Restrictions And Offer Discounts For Extended Stays

The adoption of length of stay restrictions is the still the most effective way to increase revenue per room.

It is best to implement minimum LOS restrictions when you are expecting a period of high occupancy so that the period after remains lucrative. This means busy periods will spill over into quieter times.

Maximum LOS should be implemented when you plan to sell rooms at higher rates. You shouldn’t accept discounted rates for multiple night stays during this time, and guests who want to stay beyond max stay can be charged a high rate.

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