Blogmas Day 8: 10 Ways to Increase Revenue Per Room (RevPar) in 2016

The Ultimate Goal

In order to remain competitive in the hospitality industry, companies must be able to compete on price, service, amenities, and location in order to improve overall profitability. The goal of any company is to maximize revenue, while decreasing operating costs associated with the business. Here are 10 ways to increase your companies revenue per available room in 2016!

1. Free Wi-Fi

According to JD Powers, 77% of hotel guests view free Wi-Fi as the most important amenity when choosing a place to stay. In the same study, over 50% of potential guests wouldn’t even consider a hotel or motel that didn’t offer free Wi-Fi. If offering free Wi-Fi hurts the financial books, simply offering a freemium service can keep all internet users happy.

free wifi
#1 Amenity Guests Look For

2. Length of Stay Restrictions

Michels & Taylor, a respected hotel asset management and consultant business, notes that length of stay is the most effective way to increase revenue per available room (RevPar). Having minimum stay requirements with various rate levels can be an alluring strategy if done correctly. In order to be effective, customer patterns and trends need to be consistently evaluated.

3. Rate Changesincreasing rate

Based on time of year and location, rates should be changed. Furthermore, figuring out what the best rate to attract the most customers with will lead to the highest revenue gains. “Should I charge $180 and attract 100 customers per day, or charge $150 and attract 150 customers?” This example isn’t always true, dropping your price lower will not necessarily draw more attention.

4. Different Room Types

Having different room types allows for evaluating volume and frequency changes based on features and amenities. What attracts customers to the different types of rooms? What works? What needs to be rethought?

5. Welcome Pets

siberian husky
You Mean I Can Come?

Being able to advertise as a pet friendly business will attract vacationers looking to bring their four legged friend along for the ride. Simply limit the number of rooms that are designated as “pet” rooms and charge a small fee of $15-20 per day for the pet to cover any cleaning or damage expenses. Many hotels prefer to have pet rooms located on the end of wings, enabling installation of vinyl strip flooring as opposed to carpet.

6. Importance of a Good Front Desk Associate

Who is the first person a guest interacts with at your hotel, motel, and B&B? The front desk associate needs to be proficient, confident, and friendly with all arriving and departing guests. The associate can be a source of knowledge within the hotel and also make specific recommendations for entertainment and dinning.

7. Enhance In-Room Offerings

In order to eliminate online reviews that state the hotel is old or rundown, enhancing your existing furnishing will give your hotel the respect you want it to have. Key things to replace include furniture, flooring, bath accessories, and updating TVs. See our latest furniture offerings, here.

Click to view our newest furniture!

8. Online Reviews/Social Presence

Travelers look to online reviews and customer comments in order to gauge differences between competing hotels. As stated by Hospitality Technology, most complaints listed on hotel reviews are poor housekeeping, service quality, and general maintenance. Ensure your establishment has a positive rapport with the community by being active on social media, and taking customer comments online as constructive criticism.

9. Improve the Breakfast Bar

Breakfast is the most important meal of the day, therefore your guests should be looking forward to fresh fruit, pastries, yogurts, and other offerings. No matter how big or small your establishment, a quality, fresh breakfast will send positive vibes all around. Make sure the breakfast bar is clean, organized, and restocked as supplies vary by hour.

continental breakfast - food with background
A fresh breakfast will make your guests happy!

10. Benchmark from the Industry

The best way to get ideas and improve upon proven industry practices is to view what other establishments are doing. You can gain access to the positives and negatives of particular business approaches and generate solutions based off observations. This can be done by simply looking at their social media pages, website, or visiting the establishment itself if the business is local.

Resources Used:


Happy Friday! Blogmas Day 9 coming soon!

faecbook xmas
Click to Like Us on Facebook!




One thought on “Blogmas Day 8: 10 Ways to Increase Revenue Per Room (RevPar) in 2016

  1. I was very happy to discover this site. I need to to thank you for your
    time for this fantastic read!! I definitely liked every bit of it and I have you saved to fav to see new information on your site.

Leave a Reply