4 Ways to Increase Profitability from Hotel Bookings
Businesses are constantly tackling the same questions: How can we acquire more customers? How can lower costs? How can we increase volume per each sale? This is no different in the hotel industry. Today, we would like to share with you 4 ways to increase your profitability from hotel bookings.
1. Multiple Suppliers
The hotel industry is like the stock market - prices are constantly changing. With so many players involved in reselling hotel inventory, it´s wise to connect to as many hotel suppliers as possible. Not only do certain suppliers have better negotiated agreements in certain regions, but prices are constantly fluctuating both on the same supplier´s platform and across various suppliers.
If you don´t have the IT capacity to hook up to many suppliers, you can consider connecting to an IT Hub such as TravelgateX, which connects you to hundreds of suppliers via one centralized API.
2. Re-shop Your Existing Hotel Reservations
There are 2 main problems with B2B hotel bookings. First, hotel prices tend to change AFTER you book - not once, not twice but 22 times between the moment you book a hotel until the last free cancellation date. Second, most travel companies don’t re-shop hotel reservations after they booked. By not re-shopping their hotel reservations, they are leaving A LOT of money on the table.
Though theoretically, travel companies can re-shop their reservations manually, this incurs 24/7 labor costs and time to monitor the prices for all your reservations on all your suppliers. In addition, there are the dreaded room mapping obstacles, due to the lack of standardization in the industry.
Luckily, Pruvo offers a zero risk, AI-driven solution that can automatically track hotel bookings you made on any provider, monitor their price 24/7 and help you increase your profitability by automatically re-shopping those reservations when their net price drops.
3. Join a Travel Network Alliance
In order to increase your negotiation status when dealing with suppliers, consider joining a travel network alliance, such as Lálianxa in Latin America or MAST Travel Network in North America. Not only will this give you access to possible better rates, but also access to the network´s technological tools that benefit all members.
4. Post Booking Upgrades
Imagine tickling two tummies with one finger - upgrading your customer´s room and finding that room for a lower price than the original room (thus increasing your profit margin).
Thanks to our advanced AI-driven Mapping algorithm, Pruvo Revenue Maker is capable of not only comparing and re-shopping the same room over the different providers but ALSO finds upgraded rooms (at a lower cost) for your customer!
When finding an upgraded room for a lower price, you can even ask your customer to add a nominal fee for the upgrade, thus increasing also the sales price.
In such a competitive landscape, it´s important to gain an edge. Pruvo Revenue Maker can be that exact competitive edge you need to increase profitability and generate new sales. Reach out to book your free demo TODAY!