Your property’s Average Daily Rate, or ADR, plays an important role in increasing your overall revenue. This metric can help you understand the average realized room rate per day over a period of a month, a quarter, or a year. There are many ways to improve your ADR but here are a few of our top tips to help you get started this year.
Packages and promotions
Offering packages and promotions for your guests is a great way to improve your ADR and help keep your property fully booked. Seasonal promotions are always beneficial. Adjusting rates based on your high and low season will ensure you are maximizing your revenue based on demand. To top that off, consider offering a discount for additional nights. This brings in revenue that might otherwise be missed.
We’ve talked before about the benefits of creating personalized and more thoughtful vacation packages as a general revenue generator. The key here is understanding who your customers are and what they are looking for when they come to visit. For example, maybe your property brings in more couples for romantic weekend getaways so offering several romantic packages would be ideal.
Upsell with property extras
Consider offering extras your guests can add to their reservation. These products can range from small items like a branded travel mug to larger items like a bottle of wine or food packages. Really the possibilities are endless when it comes to what product you choose to offer. Branded items are a great way to also self-promote your property once the guest has left. These extras can help make your guests’ experience feel special and memorable, which will keep them coming back.
Personalization is key to gaining new guests and maintaining loyal ones. But the key to implementing personalization is knowing who your guest is and that starts with understanding your data. Knowing specifics such as demographics, the average length of stay, booking times etc. will help you personalize your outreach to your guest. Personalization will help increase conversions, thus helping to drive an improved ADR.
If a guest has expressed a positive experience during their stay, encourage them to share their opinions with their friends and family. Social media is the best platform to get the word out - quickly. So, encourage them to recommend your property on Facebook or share tagged photos during their stay. This referral will help increase brand awareness and ultimately drive more bookings.
Speak to flexible travelers
As one of the many travel trends on the rise in 2019, millennials are not only seeking out jobs with travel perks, they are looking to extend their business trips into personal trips. Knowing this, be sure to accommodate these “bleisure travelers” with incentives to stay an additional night.
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