Though average daily rate in U.S. hotels continues to grow year over year, hotel operators are not so eager to increase room prices these days.
STR and Oxford Economics forecast ADR will increase by 1.9 percent this year and 2.2 percent in 2020.
While an increase is usually viewed as a positive, the joy is muted in the hotel industry. STR noted in August that inflation coupled with increasing room supply are outpacing the rise in hotel revenue.
Hotel operators are experiencing what STR calls “an absence of pricing confidence.”
So, you don’t want to increase your room rate but you need to make more money.
How do you do that? You upsell. You offer additional products and services to guests who have already booked at your property.
Think you do not have anything to offer besides a clean room and free breakfast? Think again. Generating extra revenue by upselling is possible no matter the location, type and size of your hotel.
In today’s episode Lodging Leaders talks to experts in upselling in the hospitality industry.
You’ll hear from Geoffrey Toffetti, president and chief marketing officer of Frontline Performance Group, and Jason Bryant, founder and CEO of Nor1.
They talk about the art and science of selling upgrades and when to engage the guest with offers. And they give tips on ways to increase incremental revenue that goes straight to your bottom line.
Bijal Patel, 31, is CEO of Coast Redwood Hospitality and the youngest chair of the California Hotel & Lodging Association. He’s made even more history at CHLA by agreeing to serve an unprecedented second term as the lodging industry emerges from the coronavirus pandemic. Patel is a third-generation hotelier. Being so steeped in hospitality at such a young age is not new for members of the Indian American hotelier community, but Patel fears the pandemic has drained the industry of emerging talent. Lodging Leaders spotlights Patel, who represents a leadership demographic that is fighting for the life of the hospitality industry as they watch their peers veer toward other career paths.
Many hotels these days have made room for guests with disabilities. Hotel managers and staff should also know what the Americans with Disabilities Act says about accommodating guests with pets. During the pandemic lockdowns, a lot of people added a pet to their household and now they’re bringing Fido along on vacation. Hotel employees need to know how to cater to both consumers who are pet owners as well as guests who travel with a trained service animal. Episode 329 of Lodging Leaders podcast reports on how the ADA defines a service animal and how a hotel is legally obligated to serve a guest who comes with a dog or any other animal.