5 Alternative Revenue Sources for Hotels and Restaurants to Consider
More than ever, revenue management is critical for running a successful, profitable hotel and restaurant. With time, there has been an increase in the amount of data available to track revenue and analyze it. For some people, this has complicated the industry. But the truth is, it has provided more opportunities for businesses to turn a profit.
Large hotels and restaurants continually look for innovative ways of improving their operations and learning. However, only a few understand the value of revenue management strategies, limiting the revenue-generating potential.
Statistics have shown that the major revenue sources for hotels and restaurants have been fluctuating dramatically. Fortunately, there are several ways of boosting revenue. Read on to get more ideas.
Sell Branded Products in Gift Shops and Online
Hoteliers and restauranteurs are starting to understand the potential of direct-to-consumer retail as an added source of revenue. Whether it’s t-shirts, bathrobes, coffee mugs, or bottles of signature barbecue sauce, these and other items can fetch a decent price when sold to consumers.
How much does it cost to launch an online gift shop? The costs will vary depending on several factors, including location, size of your store, and the products you intend to sell. However, it’s safe to say the markup on items will compensate for the upfront costs.
With a hotel or restaurant gift shop, you must constantly look for ideas for increasing your sales revenue. This doesn’t have to be an impossible task. First, you need to know your customers. Understand your customer base. Secondly, engage your shoppers.
Why should you sell branded products? The primary goal of starting any business is to make profits. Branded products are cost-effective ways to promote your hotel and restaurant business. Every marketer should focus on building brand awareness. If people can recognize your brand, chances are they will buy from the same brand.
You can do this by selling branded products that patrons can use daily or keep for long periods to get maximum exposure. By doing so, clients are likely to remember your business for a longer period or the rest of their lives.
Offer Event Organization Services
Another creative way of boosting your hotel or restaurant revenue is organizing events such as exhibitions and festivals. Use the events to attract more customers to your business. If you have event halls or rooms to cater to large events, you can talk to corporate clients and encourage them to host their events in your hotel. You can make your work easier by using event management software.
Offer Recreational Activities and Transportation
If your customers favor certain activities, ensure you add them to your list even if you don’t have facilities that can support them. For example, if patrons want golf lessons, you don’t need to own a golf course. You can make extra income by signing a deal with a nearby facility and get a portion of the sales revenue.
Additionally, consider offering transportation services to and from your restaurant. Nowadays, many guests are opting for air travel. Therefore, you can offer a shuttle directly to your establishment. Other than improving customer satisfaction, this is likely to ensure customer loyalty.
Offer Parking Services
Traditionally, mentioning parking lots as a revenue source for a hospitality business was a source of ridicule. However, many companies have started offering services. Many towns have become automobile-heavy with time, which has resulted in parking issues. Restaurants can use their parking lots in several ways to generate extra income.
Establish Health and Fitness Outlets
For example, you can have a gym, a spa, and a swimming pool. Don’t freak out. This doesn’t have to be a huge investment, and you don’t need to take actions such as hiring world-class fitness trainers or sell your property to acquire expensive gym equipment. Also, you don’t have to offer all of them. However, you need to ensure you offer something unique.