Tips to Boosting Hotel Revenue Despite the Pandemic 01

Ticketing and Online Booking 03

Contents Upgrade to Multipurpose NFC Based Form Factors
F&B Incentives
04
05
In-Room with QR Ordering 06
Rewarding Loyalty 07
Automated Upselling 09
Personalization 13
Cross-Selling 14
Update Your CRM 15
Investing In Local Partnerships 18
Optimize Occupancy 19
Leverage Ancillary Revenue Strategies 20
Leveraging Mobile Automation 22
Incorporating Segmentation Strategies 23
Digitizing Customer Experience By Using Contactless Technology 25
Key Points 27
Conclusion 28
Tips to Boosting Hotel Revenue
Despite the Pandemic
In the wake of the pandemic and the ensuing
lockdowns traveling for pleasure or work is a thing of
the past. And with national and international travel
shrinking during 2020, the hotel industry has been
among the worst hit. And as the pandemic evolved, the
repercussions continue in the form of intermittent
lockdowns, the closing of borders, and the ensuing
economic stress.

But all’s not lost. With vaccination drives in full swing

across the world, things are beginning to look up.
Internal tourism is slowly picking up in many countries
and local flights are going back to normal. Businesses
big and small have also started organizing in-person
meetings on a smaller scale and short travel itineraries
seem to be high on most people’s travel plans.

And though the times are still tough for both hotels and
event venues, rethinking and revamping strategies and
preparing to adapt will hold the industry in good stead.

01
At PouchNATION we work closely with the hotel
industry and after numerous interviews with
various clients,
we decided to create this
e-book to support the industry.
We’ve compiled tips and strategies that hotels and
event venues can use to increase the revenue and
recoup some of the losses you may have incurred
during the pandemic.

02
Tips#1

Ticketing and Online Booking

Now more than ever, an online reservation system is
critical for your hotel’s success, given that almost
57% of all hotel bookings are made online. And the
numbers are only expected to increase. While most
hotels these days offer online booking, what’s
important is ensuring that your booking process is
user-friendly and easy to navigate.

While online bookings are the norm these days,

hotels can go a step further and hold parties or
concerts at their venues, whether a bar, club or
ballroom and leverage on the event’s ticketing sales.
You can make bundle packages for tickets and a room
for your guests to stay for the night after the event, or
simply upsell room upgrades when guests buy a
certain amount of tickets. You can also add more
perks, vouchers for first drink at the event or free
breakfast if guests decide to stay at the hotel.

03
Tips#2

Upgrade to multipurpose
NFC based form factors
NFC technology is all the rage right now in the hospitality
industry. A study showed that contactless payment methods
significantly impacted spending with cashless payments
through NFC cards or wristbands increasing up to 30% of
customer spends. This is because customers are more likely
to commit to spending money that has been pre-loaded.

NFC-enabled payments also do away with the tap and sign

actions, thus reducing friction - the element of touch involved
in traditional payment methods and also reducing the amount
of time our mind lingers on any single payment.

It allows guests to open doors with a simple tap of the same

NFC cards or wristbands without having to download a mobile
app or change to another device.This is greatly convenient for
your guests. It’s also a cost-efficient option for hotel owners as
you do not have to spend money on replacing hotel door
locks. This greatly reduces the burden on your check-in
team, and allows for automatic check-ins.

04
Tips#3

F&B Incentives
Incentives in the form of vouchers and discounts
are a great way to lure in guests. By offering
exciting incentives, you’re not only enhancing their
customer experience but also giving them an
additional boost to increase their spending
during their stay.

Incentives can be in the form of a free beverage

during check-in, free credits that can be used for
meals or beverages at the hotel bar and
restaurant, or even a late check-out in exchange
for a meal or drink at the hotel bar.

05
Tips#4

In-Room with QR Ordering

Apart from a host of advantages, mobile ordering for in-room
dining allows your guest to be more in control of the dining
experience.

If you are a hotel, restaurant or an event venue, offering QR

or contactless ordering and payment solutions will allow you
to operate at less capacity while relieving guests who are
concerned about high-touch surfaces like menu cards for
example. All a guest needs to do is scan a QR code on their
mobile, go through the menu, and order via their smartphone
without downloading the menu. Their order can then be sent
to their room, minimizing contact successfully.

When it comes to contactless payment solutions, guests no

longer need to download multiple apps. Instead they can
just use a web-based platform that allows them to pay
using their credit card or e-wallets.

06
Tips#5 (1/2)

Rewarding Loyalty
Hotel sales can be challenging, even more so during
the pandemic. Studies show that the probability of
selling to a new customer is 5-20% while the probability
of selling to an existing customer is 60-70%.
In other words for hotel and venue owners, your
existing customers are your best bet to increase your
revenue while optimally utilizing your resources and
building deeper customer relationships.

But, how do you do that?

In the world of hospitality, rewards, upselling, and

cross-selling are the key drivers of profitability. The key
lies in making your customers feel valued. People
love to feel special, so offering your loyal customers
rewards in the form of points or free credits they can
exchange for special services like a spa treatment, a
bottle of wine, flowers, or cake will make them feel
valued and keep them coming back thus increasing the
average spend per guest.

07
Tips#5 (2/2)

Rewarding Loyalty
Rewards can also be in the form of a room upgrade, discounts on birthdays
and anniversaries, free stays on completion of certain levels etc.
Creating customized packages based on the data you have about your
customer will allow hotels and venues to increase revenue per user. By
creating different packages of amenities that target different guest segments
you are increasing the value for every guest.

When it comes to vouchers and discounts, the sky's the limit and your
imagination is key. Vouchers offering a discounted stay on anniversaries and
special occasions, a free cake while dining at the venue on a special occasion,
discounts on F&B services for group bookings, etc. can go a long way in
increasing the average value of a sales transaction.

No customer wants to feel that they’ve missed out on a great deal. So,
offer ‘limited time only’ discounts and promotions to create a sense of urgency
and induce spending.

08
Tips#6 (1/4)

Automated Upselling
Ask yourself - what would my bottom line be if I were
able to earn an additional one dollar from every guest
that visited my hotel or venue during the past year?

This should help you understand the potential of

upselling techniques in increasing your revenues. You
will find that most customers are open to buying a more
expensive product or service than what they’d initially
planned as long as they feel it adds better value, is
relevant, and convenient.

The check-in and checkout stages are the most

common upsell points and for very good reason given
that most customers are in a ‘buying mode’ and willing
to spend.

The best part about upselling is that it is a strategy

available to all types of properties and one that can be
offered to all your customers. Like we mentioned above,
the key is to propose products or services that offer
your guests personalized value.
09
Tips#6 (2/4)

Automated Upselling
So how do you include upsells in your hotel or
venue sales cycle? Some common examples of
upselling in hotels include:

Creating tailored packages for different guest

segments to increase the value of your offerings
for your guests. A one-size fits all approach will
never work here.
A classic example of upsell that very rarely fails
to convert is room upgrades. You can offer
upgrades to bigger rooms, rooms with special
amenities, rooms with a great view, etc at a
discounted rate.
Depending on the information you have about
your guest (are they on honeymoon, are they
celebrating an anniversary?) you can upsell
in-room extras like a bottle of champagne,
premium chocolates, premium minibar offerings,
etc. are all great options.

10
Tips#6 (3/4)

Automated Upselling

Add-ons when it comes to food and beverages – think premium

pizza, or toppings such as olives and avocados, a cocktail hour,
combining mains with sides/desserts to create a value deal, etc.
You can also have your wait staff suggest meal accompaniments to
guests dining at your hotel Like a draft beer to go with the pizza, or a
wine to pair with the meal, etc.
Tie-up with local businesses to offer additional activities like city
tours, adventure trips, a day at a wellness spa, etc. You can also
consider enlisting the services of a professional photographer, an
emcee, a florist, a band, etc.

While upselling is essential to increase average spends per guest, ensure

that you offer them a seamless and frictionless experience so that
they are encouraged to return. The silver lining is that many guests may
be local, seeking a change of scenery and by giving them good discounts
and deals, you’re making it easier for them to return to your property.

11
Tips#6 (4/4)

Automated Upselling
Automate Your Upselling
Consider investing in an upsell and guest
communication software that will allow you to
understand your customer needs and tailor your
offerings to increase the revenue of your hotel
while also enhancing engagement.

Such software will analyze your guests’ behavior and

send welcome emails and offers automatically. The
best part is that most software allow you to set up the
automation from your dashboard to NFC cards.

12
Tips#7

Personalization
Spamming customers with the same,
standard email is no longer a viable choice.
It’s important to personalize emails to
guests, before, during, and after their stay
with special food and beverage offers and/or
spa packages.

Other ways to personalize services include

promoting happy hours based on what your
guests consumed during their earlier stay.
This is where data collection and analysis
will prove helpful.

Finally, you may even feed your CRM with

data collected from the client’s transactions
and behavior during their stay to personalize
communication (and offers) in the future. This
will show that you not only noticed what the
guest liked but also took the time to
personalize your communication, ultimately
leading to customer retention.
13
Tips#8

Cross-Selling
By definition, cross-selling is the concept of selling an
additional service to complement the service that your
customer is already buying. In this case, it would mean,
in-room massage service, baby high-chairs and cribs,
special tours and activities (hiking, kayaking, nature
walks), and discounts for meals at the hotel restaurant.

An opportune time to cross-sell is when the guests are

checking in. You may even send an SMS or email to
your guests in advance once they confirm their
booking. But make sure that you don’t bombard them
with offers as that may lead to irate guests and
possible cancellations. The trick is to nudge them in the
right direction without seeming pushy.

Pro Tip: To successfully cross-sell, it’s important to

sell services that pair effortlessly and if possible,
customize the offers depending on the individual
clients and their needs.

14
Tips#9 (1/3)

Update Your CRM

Your CRM system likely needs an upgrade. Like
most companies, hotels can be hesitant about
updating their customer relationship
management system to fit the needs of an online
customer. But by improving your customer
service and by going digital, you can increase
your sales and save a ton of time and resources
required to convert leads.

How, you ask?

Customer Relationship Management is a group of

tools and techniques designed to collect, process,
and analyze customer information with the goal of
building customer loyalty.

15
Tips#9 (2/3)

Update Your CRM

In this case, CRM systems allow the hotel to identify

and define each customer’s profile in great detail
and, later, to create tailored and targeted
communication campaigns. Hotels and venues can
also also look to their CRM to understand new guest
behavior that evolved during the pandemic.

16
Tips#9 (3/3)

Update Your CRM

CRM systems also help optimize a hotel’s

profitability and customer satisfaction by
targeting specific groups of customers. For
instance, by learning about a guest’s purchase
history, their preferred means of
communication, preferred payment methods,
interests, and preferred services, you can build
a long-term relationship with your guest.

Wondering why?

Well, simply because having a satisfactory

experience will automatically result in
higher customer lifetime value (LTV).

17
Tips#10

Investing in Local Partnerships

Supporting local businesses is a trend that has been
gaining momentum in recent years. For hotels and
venues, supporting this moment is as necessary as it is
trendy. As more and more travelers look for unique and
local experiences, local communities will play an
important role in defining and differentiating your
brand.

Unless your hotel or venue is located in a secluded area,

you can partner with local businesses such as cafes,
restaurants, shops, theme parks, and museums, and have
your guests use a cashless NFC solution to not only make
purchases at your hotel but also at these local businesses.

This will increase the average spend of your guests, which

could bring in extra revenue for your hotel in the form
of commissions that you receive from your local
partners. It’s a win-win as you’re helping local businesses
improve their sales while earning revenue through
commissions.

18
Tips#11

Optimize Occupancy
Find ways to optimize occupancy especially during off
or lean seasons. Whether you are a B&B or an upscale
hotel, your occupancy rate is what matters most for
the health of your business.

While seasonal or event-based fluctuations in demand

are part and parcel of the industry, ensuring your hotel
is as full as possible will ensure that money keeps
coming in.

Daycations are getting increasingly popular with people

looking to get away for a day and hotels can tap into
this segment (which will usually be local) to ensure
occupancy even during the off-season.

Consider using day use and hourly rate functionality. A

Property Management System (PMS) equipped with
day use and hourly rate functionality will allow you to
redefine how you sell rooms. It will also help you
engage with your guests prior to their stay while
keeping you abreast of expected arrival time.
19
Tips#12 (1/2)

Leverage Ancillary Revenue Strategies

While guest bookings for hotel rooms is the primary
source of revenue for all hotels, you can also look at
leveraging ancillary revenue through add-on products,
services, or facilities.

An ancillary revenue strategy will help hotels and venues:

Generate new sources of revenue

Drive up your hotels average daily rate (ADR)
Create more opportunities for marketing
campaigns and promotions
Bring in diversity in their offerings which in turn
will act as a buffer during lean times
Attract new guests

20
Tips#12 (2/2)

Leverage Ancillary Revenue Strategies

Here are some ways hotels can diversify their revenue

streams through ancillary opportunities:

Convert empty spaces into co-working spaces

Use your hotel gift shop to also sell home
decor and merchandise like local art,
homemade soaps and shampoos, natural
essential oils, merchandise with your hotel
branding, etc.
Use large spaces in your property to host
local events like concerts, corporate events,
weddings, art shows, etc.
Launch add-on experiences that could lead to
impulse purchases like foot massage
services, cooking or fitness classes, gaming
arcade, etc.

21
Tips#13

Leveraging Mobile Automation

Mobile automation can be a game changer for those hotels
looking to put the controls of a stay in the hands of their guests,
while capitalizing on their impulse buying tendencies.
While this is still in the early stages, hotels are experimenting
with mobile sales that allows guests to place an order for
products or services, for example a glass of wine from
anywhere on the property.

22
Tips#14 (1/2)

Incorporating Segmentation
Strategies
One thing the pandemic has taught us is to be less rigid and
flexible and that applies to everything we do now. This is why it’s
important to combine different strategies to stand out and gain new
customers. If your hotel or venue is located in an area that sees a
surge in visitors at certain times of the year then you need to find
other ways to capitalize on that. Are there concerts, events and
special occasions that out of town visitors travel for? How prepared
are you for those?

Consider partnering with event managers to sell tickets to these

events. Tailor-make experiences for guests travelling for these
events. For instance, create options for shopping and sightseeing.
Team up with Hop on Hop off, and offer these experiences with
additional taxi, dinner or gift sets. As a result, the guest will enjoy the
city more while your hotel earns more revenue—a win-win for both.

23
Tips#14 (2/2)

Incorporating Segmentation Strategies

Remember to keep things quirky and fun. Travelers
today look for new experiences and studies show that
tourists place more emphasis on property’s sustainability
and its contribution to the local economy.

People are bored of things like romance packages. But

something like a bucket list package (with a list of must-see
attractions in your city/town) will make guests take notice.
Remember, you can always re-package an old experience
with new messaging. It’s all in the details!

24
Bonus (1/2)

Digitizing Customer Experience

by Investing in Contactless
Technology
The hospitality industry has in recent times begun
emphasizing a more guest-focused approach. This requires
hotels and venues to listen better, be aware and on top of
customers’ needs and adapt their products and services
accordingly.

Investing in an all-in-one cashless and guest management

solution with solutions tailored to meet the needs of your
customer is the way forward.

At PouchNATION we offer solutions that can help you with

everything from cashless payment and customized NFC to
live data reporting and easy guest check-in/ check out.

25
Bonus (2/2)

Digitizing Customer Experience by

Investing in Contactless Technology
Some of their contactless solutions include:
Contactless valet service at the hotel
Easy contact tracing for hotel staff and guests
Contactless check-in and check out for guests
Contactless purchases at the gift shop

Contactless services are the need of the hour

in today’s times and therefore, a much-needed
upgrade. They also help reduce service time,
which drives consumption and reduces staffing
needs. It also shows that you care about your
guests and their safety. Once your guests feel
safe and welcome, chances are that they will
visit again and/or recommend your hotel to
their friends and family.

26
Conclusion
The pandemic has forced us to change our ways, experiment, and
see what fits as the world continues to evolve. Change isn’t
necessarily a bad thing. It pushes us to take risks and try out
things that we were averse to in the past and that’s when growth
happens.

The hotel industry is evolving at a fast pace. New technology

allows us to innovate and give our patrons an even better
experience. Eye-catching promotions, exciting offers, and
tailor-made experiences will keep you in the forefront of your
customers’ minds and remind them why your property is a better
deal. Add to that the element of safety, and you have a winner!

27
Key Points
The pandemic has changed the way businesses function and rather than
sitting back and waiting for things to get back to normal, hotels and venues
should adapt and evolve to thrive in the new normal.

From creating better digital experiences for the discerning traveler to

thinking ahead and offering more than just a place to stay, you need to stop
being complacent about your hotel's revenue strategy. Instead, aggressively
look for ways to diversify your property’s sources of revenue to take you
through the bad times.

28
14 TIPS TO
MAXIMIZE
REVENUE
FOR YOUR
OTEL