How to build an Empire with Hotel Occupancy Rate?

 How to build an Empire with Hotel Occupancy Rates?

Hotel occupancy rate varies and never remain the same throughout the year. It increases during on-season, weekends whereas decreases during the off-season, other days. The good occupancy rate is very vital as hotel rooms are perishable. Guestroom also contributes to more than 50% of the total revenue generated in a hotel. 

The occupancy rate is a ratio of occupied rooms to total rooms. i.e number of rooms that are occupied in the hotel are divided by the total number of rooms and expressed in percentage.

The average Occupancy rate in a hotel is usually between 50-80% and above 90% during on-season. However, hotels in the middle east have an occupancy rate of less than 50% due to political instability.

The occupancy rate was decreased to less than 20% due to covid-19 in the world which is now healing and getting back to normal.

To increase occupancy rate certain things should be considered in mind. If you are struggling to maintain an average occupancy rate then, it's time for you to think with a cool head. Any problems causing it should be identified as soon as possible or else, the business will suffer furthermore causing it to sink.

Keeping the record of occupancy percentage also helps to predict the future. It will determine how our property is running and will suggest e change to make with time. Usually, hotel managers and owners compare their occupancy rate with competitors and decrease the price for a room. Reducing price strategy won't progress revenue though it might put your property near to break-even point. 

If your hotel occupancy rate is far from average/struggling and you are wondering how to increase it? this article will help you 100%.

You can build an Empire with good Occupancy rate. 'Rome' was not built in a single day so, first, you must have patience and passion. 

Satisfaction and experience of guest create a very important factor in increasing occupancy rate. Our priority should be the satisfaction of guests and for that, you should make a guest feel "Home away from Home"

Similarly, there are more ways to increase the occupancy rate of the hotel. The common practice to be followed are :-

1) offer online reservation/booking :

More than 80% of bookings in hotel are made through the reservation. Online reservation is very crucial and will boost up the occupancy rate. If your hotel has no website you can enlist your website in trip advisor, Oyo, booking.com 

2) Discount and tempting loyalty programmes :

Discount and loyalty programmes help to retain the customer. Discounts can be awarded based on regular visits, types of guests. Family guest prefers discounts while business travellers prefer loyalty programmes.

3) partnership with travel agents :

Partnership with travel agents will help you in increasing the occupancy rate during the offseason. Travel agents provide package tours and if you tie relationship with travel agents, your hotel will be the first choice for them. 

4) social media marketing :

Everyone uses social media so, proper marketing in social media will help in the branding of your property and creating an image of your property in customer perceptions.

5) promotion offers :

Various promotion offers can also be used to increase the occupancy rate. For instance, free lunch/ dinner with rooms, 50% discount on the third night if staying for more than two consecutive nights e.t.c

6) Marketing : 

There is a separate department called marketing in the hotel which implies how valuable this department is. Marketing helps to create a link with business and corporate house. Proper marketing of property in local areas will also help you to remain number one choice & one step ahead among competitors. It also helps in increasing revenue through the meeting, seminar and to create various packages during festivals.

7) use circumstance and local events :

Local events and circumstances should be used as an opportunity to boost and strengthen the occupancy rate with aim of maintaining 100℅ occupancy rate. We have to use various local exhibitions and events.

8) offer free drinks and breakfast :

Most people look for free breakfast with the room rate and some may look for free drinks. So, this will directly improve the occupancy rate. It is also best to offer free drinks and breakfast rather than lowering the rate because lowering rate don't create demands but it sets the wrong expectation for guests. 

9) advertisement :

Create a brand of your property and image. Advertise only what you have and do not advertise what you don't have. This will help you in attracting thousands of visitor every year. Advertise wisely.

10) organize  functions :

Organizing the functions will help you in further improving the occupancy rate so, conduct seminars, meeting, wedding. 

11) engage with customers on the Internet :

Engage on the internet with customers, solve their problems/queries and reply to their feedback. 

12) offer price value for money :

Do not overprice your rooms and services. Offer more services. Ensure to create a positive impact on their stay which they remember for a lifetime. 

13) infrastructure development : 

Infrastructure is base for maintaining occupancy rate. Most people like to visit a developed place with all infrastructure present. Due to development of infrastructure hotels in Europe have more than 80% average occupancy rate.

No matter how big or small is the property this tips will surely help you in increasing your occupancy rate of the hotel. Moreover, this will also help you in maintaining the occupancy rate during the off-season/off-weekends. You can easily create your business empire over time by achieving success day by day. Remember- hard work, patience and passion.