Last week, we gave you a brief introduction to yield management for small accommodation providers.
A quick refresh – yield management is based on the theory of supply and demand: guests will pay different prices for the same thing, depending on a variety of factors. Therefore, you change your rates accordingly to get more incremental revenue.
Now, we’re going to dive deeper into the strategies you can use to increase your revenue using the same resources.
Use different rates to drive revenue.
Increase your pricing when there is high demand, and offer valuable discounts to entice deal seekers when demand is low.
You can do this according to:
Another way to drive incremental revenue is to up-sell and cross-sell every guest. As long as you offer them relevant extras, it’s a win-win situation: you’re enhancing their experience staying with you, and also making it worth your while.
Do this before their stay and during their stay. If you’re working with other operators, you will likely get a good commission for your referral!
Your booking engine should have the ability to offer extras even before the reservation is made, and be able to easily add extras to the guests’ stay.
Would you like to learn more about driving revenue? Watch our on-demand revenue webinar to get all the tips:
You can also download our free ebook:
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