Hotels at their core are time-based assets with hoteliers in the business of maximising the amount of time each room is sold for. The more time the room is occupied at the best possible rate, faster is the returns on asset investment.
However, due to guest arrival and departure times hotel rooms sit empty for large quantities of the day. The average hotel room actually sits empty for 7 hours between the previous guest departing and the next guest arriving, costing the hotel considerable lost potential revenue. Over the last couple of years, hoteliers have been plugging these gaps with day-use bookings – selling the room for a couple of hours to new guests. However, a much more profitable technique is to plug these gaps by upselling existing guests with early check-ins and late check-outs. With more flights operating across and between destinations, flights are now arriving at different times on the given day from early morning and the guests now have a departure time from late in the afternoon till the evening. The guests do not want to pay the full price of the room to use partially, wouldn’t it make sense to target these guests effectively and earn revenues by selling more of the early check-in and late check-out packages. Why are Hotels trying to capture new guests when they can easily target their current guests and increase the occupancy of their property thereby generating incremental revenue.
Currently, hotels will wait for guests to request early check-ins or late check-outs which Hotels can persuade guests to do. From our experience, Hotels can expect 16% of guests to convert each paying on average 13% on top of their room rate for earlier check-in flexibility. And, because the room doesn’t need to be re-cleaned, any revenue generated is pure profit and goes straight to the hotel’s bottom line.
Still wondering How Hotels can generate incremental revenues from early check-in and late check-out, connect with us and we would be happy to engage, Click to connect or alternatively click this link: http://hotelxsell.com/contact/