Is your hotel generating cost overruns lately? Do you think you have room for improvement when it comes to increasing your hotel profitability? Would you like to know some strategies and technologies that can make your hotel more profitable? In this post we give you some keys to optimize the management of small hotels.
What is hotel profitability and how is it calculated?
Hotel profitability is the ability of an establishment to take advantage of its resources, maintain itself, grow and generate income or new profits. In the hotel sector, the indicator that helps to measure whether a hotel is profitable is RevPAR (revenue per available room).
What strategies to follow to improve hotel profitability?
Compared to hotel chains, independent hotels have the advantage of maintaining greater autonomy and freedom in decision-making. In addition, their special operating and management characteristics give them a Greater flexibility to adapt to changes that are being introduced in the sector and that affect all areas: technology, logistics, organization, market situation, etc.
But there is one issue on which all hotel establishments agree, whether they are independent or belong to a chain: the need to improve their profitability.
Do you want to get some tips on how to manage your hotel to improve its profitability? To achieve this goal, you must follow a strategy that combines cost control with actions focused on increasing revenue, which can be achieved with a correct pricing policy and the offer of interesting services for your guests.
A good infrastructure investment plan and the implementation of an adequate revenue management strategy, added to an exhaustive knowledge of your guests and their needs, can give you the result you expect: an improvement in hotel profitability.
Next, we are going to break down the main aspects on which you should focus your efforts to get more economic performance from your hotel, improving the quality of service and the experience of your guests.
1. Prioritize investments
Investments are a key factor in hotel management, so they must be prioritized and determined based on various factors, including: market trends, the state of our most direct competitors and, of course, the needs and demands of our customers. actual and potential customers.
In addition to the reforms in order to improve the aesthetics and the operation of the basic facilities, currently the needs and requirements of the guests make it more necessary than ever to have a quality network infrastructure and tailored to your present and future needs.
In any case, you must analyze and assess the costs of these investments and what their ROI, be aware of your possibilities and try not to incur extra costs associated with a poor supplier selection. Here it is of vital importance that the technology providers you work with are specialized and have extensive experience in the hotel sector.
2. Network infrastructure optimization
Did you know that the implementation of the right technology can significantly improve hotel profitability? For example, the implementation of fiber optics GPON (Gigabit capable Passive Optical Network), service in which we are experts in Cerium, It will give you the following advantages:
- Improving the guest experience by providing quality Internet connection in their own rooms. This will clearly favor us, since we will be able to retain them and make them recommend us.
- Thanks to the GPON system we can promote and sell additional services: IPTV television system. , video on demand (VOD), launch of a corporate channel with hotel information: restaurants, spa, beauty treatments, etc.
It may interest you: GPON fiber optics: what is it and benefits for your hotel
But there is still more: Did you know that GPON helps you reduce energy consumption in your hotel? This is possible because fiber optics allows data to be transmitted over much greater distances than conventional copper wiring systems, eliminating the need for repetition points through switches, which consume electricity.
Various studies put at least 14% of the costs of a hotel derived directly from energy consumption and that, with the appropriate measures, this important expense can be reduced by up to 40%. It is clear that improving Energy Efficiency in your independent hotel is a great opportunity to improve your profit margin.
3. Know the client and their preferences
Thorough knowledge of your hotel's guests and clients, especially their needs and preferences, is one of the most effective ways to increase hotel profitability. On the one hand, it will help you retain them, that is, that they repeat with us when they need accommodation again and, in addition, that they contract additional services during their stays.
Through a captive portal, such as the one offered by Cerium, you will be able to control and manage access to the hotel's Wi-Fi networks through an authentication or login process that will also provide you with valuable information about users. This is especially relevant for any reservations made through OTAs.
Maybe you are interested: What is a Captive Portal hotspot and why do I need one at my hotel?
4. Apply efforts in revenue management
Renewal management consists of the use of computer tools that automatically analyze the history of requests, the market situation and other factors to optimize the hotel's pricing policy.
The false belief that revenue management is only practical for hotel chains is widespread in the hotel sector. However, it has been shown that independent hotels can also improve profitability by focusing on this strategy, since it allows them to know the hotel's inventory with total accuracy and, therefore, what is the appropriate and most profitable value for each room. in every moment.
Cerium, your ally to improve hotel profitability
En Cerium we can advise you and start the best technological solutions to improve hotel profitability. We are totally specialized in GPON solutions, which will allow you to bring fiber optics and all kinds of associated services to each room and also in the application of solutions that improve the knowledge of your customers to improve your marketing actions and increase sales.
In addition, we offer an authentic suite of Cybersecurity solutions, adapted to the particularities of your business that, without a doubt, will help you not to worry about these issues that, if not taken into account, can cause significant economic damage, in the event of a possible attack or theft. of data.
Contact Cerium, leading technology integrator in the hotel sector
