RezNEWS Feature Article:
Off-Season Moneymakers
Unless your business is located in an area that draws tourists year round, there
are probably time periods when your occupancy is at a lower percentage than desired. To help stimulate rental activity during these slower times, this month’s RezNEWS feature article will focus on off-season moneymakers to help increase your property’s revenue.
Click here to download PDF version of article.
RezNEWS would also like to hear from you. Have you tried any clever marketing ideas that have been successful? We would love to be informed about your hits and misses, so please email any stories, successful or not, to sales@rezstream.com.
In a future RezNEWS issue, we will reveal the best of the bunch.
Tip: Create targeted marketing lists to direct your marketing efforts toward guests who are more likely to stay with you during the off-season.
Marketing efforts should be re-examined during the off-season. Businesses often need to shift their focus during this time to take advantage of potential customers who can more easily travel to your location. For example, Estes Park, Colorado draws over three million visitors to Rocky Mountain National Park each year. The vast majority of this traffic falls between the months of May and September with visitors traveling from all over the United States as well as from international locations. From October through April though, tourist numbers drop dramatically. As there are four large cities within two hours driving time of Estes Park, RezNEWS suggests focusing a marketing plan that would appeal to guests within this reasonable driving distance to the park. Estes Park businesses should market to previous guests who live in these cities. To make this task easier, it is helpful to utilize a property management software program that collects valuable marketing data each time a guest stays at your property. From that collected information, highly targeting marketing lists can be created. Key data collected could include guest addresses with city and state designated, number of stays and number of nights stayed, money spent, guest interests, annual occasions such as birthdays and anniversaries, and referral sources. Armed with this information, pinpoint-marketing lists can be utilized to offer timely specials that will yield more revenue than mass mailings that are only general in nature.
How do I access key marketing data within my property management software?
RezStream Professional, like other high quality PMS products, employs a very powerful marketing selection tool that can create unlimited marketing lists. For example, a business in Estes Park can compile a list of previous customers who live in cities nearby (Ft. Collins, Boulder, Denver, and Colorado Springs), who have stayed previously during the winter months, and who have spent more than $500 during their stay. The selection criteria can be as detailed as you specify. Once such a list is created, it can be exported to a simple CSV file and imported into any easy to use e-mail marketing program. Additionally, you may print marketing letters and generate mailing labels. For more information on creating marketing lists from within RezStream Professional, please view our online flash demonstration.
How do I create and evaluate effective marketing e-mails?
Make sure your offers are visually appealing and, if possible, create special tracking web pages for each of your e-mail offers. When potential guests then click on these web pages to learn more about the special, this action can be tracked and analyzed. Knowing how many people clicked on what you were offering helps refine future marketing efforts.
There are a variety of good programs currently available that allow you to create attractive e-mail offers. They also make it easy to import marketing lists from programs like RezStream Professional. A couple of the more popular programs are Constant Contact (www.constantcontact.com) and E-Campaign (http://www.lmhsoft.com). Run a Google search for “e-mail marketing programs” to find a program that is affordable and simple to use.
Tip: Make sure your special offers are truly special.
Once you have made a targeted list for marketing purposes, make sure your special offers will appeal to your targeted guests. Specials that offer significant price savings or appeal to the customer’s desire to stay in your nicest rooms are more effective than specials that just offer a small percentage discount. If you are trying to increase weekday business, try offering a free night on Thursday, Sunday, or Monday if the guest reserves both Friday and Saturday nights. Another effective strategy is to offer a free upgrade to a nicer room if a guest stays two or more nights. If you offer spa services or can partner with someone who does, it can be effective to offer massages and romance packages that include bundled products. If you have a major tourist destination or good restaurants in your area, partner with them to offer reduced ticket prices, dinner specials, and other appealing package items. Finally, if your area has local special events during the off-season, offer specials during those times to capitalize on traffic that may already be planning to come to the area. It may sound like simple advice, but we have seen many businesses fail to offer specials during the most obvious times.
Tip: Be flexible.
Many businesses turn away valuable revenue by not being flexible. Here are some moneymaking suggestions. If your property is able to accommodate pets, even in just a few rooms, attract the growing customer base that travels with pets. During the off-season, accept one-night reservations even if your normal policy is a two-night stay. Offer special corporate and AAA rates to attract the business traveler. Have a well designed website that allows guests to reserve rooms online. Just because you want to talk to a guest before they reserve a room doesn’t mean that guest wants to talk to you. More and more travelers prefer to reserve online and will only make a reservation at properties that allow them to do so. Even after an online booking, you can still make a follow-up phone call to review key policies or sell the guest additional services. It is a proven statistic that businesses that allow guests to book online will increase revenue potential over businesses that do not.
Tip: Sell gift certificates and gift cards online.
The vast majority of gift certificates are sold during November and December. Many businesses sell gift certificates by phone but do not offer them online. If you offer your previous guests an easy way to purchase gift certificates from your website, you can increase revenue during off-season months. See this month’s RezNEWS Hot Tip for more information about how to create and manage gift certificates from within RezStream Professional. Gift cards and loyalty cards are becoming more and more popular. These plastic cards can be sold in any desired dollar amount and later redeemed at your property. Gift cards have several advantages over paper gift certificates. First, they can be used like credit cards so a guest can use them to pay for their room or any other service you provide. Guests will often end up spending more than the face value of the cards. In addition, they are transferable and offer an extra security advantage, as they are harder to re-produce than paper gift certificates. Finally, gift cards and loyalty cards are an efficient way to introduce your branding (especially your logo) to potential guests. Run a Google search for “Gift Card Companies” to compare prices and options for creating and tracking gift card sales.
Tip: Encourage and foster repeat business, corporate travel, and other specialty travelers.
Repeat customers, frequent corporate travelers, and other specialty travelers such as seniors are often the groups most likely to visit your property during off-season. Encouraging guests to stay multiple times begins with how well you treat them on their first visit. This may sound like simple advice, but taking extra care to ensure that your guests are satisfied, comfortable, and feel cared for, is key in getting them to return. Make it a practice to offer VIP customers gift cards when they check out. RezStream Professional records how many times a guest has stayed at your property in addition to the number of nights they have stayed. These statistics are vital in tagging VIP customers. Once you have identified these clients, it is nice to let them know they are appreciated by sending gifts (mugs or other property branded items) during the holidays. Special offers, designed specifically for VIP customers, can also be effective revenue generators during the off-season.
Conclusion
Increasing business during the off-season is hard work but is worth the effort. Keep trying your targeted program, even if one or two offers do not generate immediate results. Remember to send in your success stories and even your not so successful attempts at off-season moneymakers. RezNEWS would love to hear from you. sales@rezstream.com
About the author
Bill Mitchell is co-owner and Chief Operating Officer for RezStream. Bill has
over 20 years experience in the hospitality industry with extensive knowledge in management and marketing for hotels, resorts, and bed and breakfasts. Bill is recognized nationally as a featured speaker and consultant for the hospitality industry.
Click here to contact the author with comments or questions.
