Your are locked in a tight price competition
One big difference between successful and average hotel brands is that successful ones are not locked in a tight price – location competition. Successful hotels and resorts can charge above average rates as potential guests perceive them above average.
If your hotel is unable to maintain demand above market average ADRs then it is a clear sign that your marketing is average, or below average.
In case you experience this, and would like to break out from this situation then it is time to reconsider your current marketing strategies. In case you didn’t yet have any strategies in place then the best is to involve an expert to create a plan for you.
Your marketing communication is full of cliches
White sand beaches, modern luxury, paradise, exceptional service, bla bla… This is what your guests see on all hotel and resort websites. Being stuck with these cliches in your marketing communication will make your hotel just one of the rest.
Put some effort into your product presentation and describe what makes your place the best in it’s category. In case you don’t have anything special then it’s time to refresh your product and bring in new concepts that are attractive to todays’ travelers.
You rely on outdated distribution channels
Classic. If you are still heavily relying on wholesalers, contracted agents and other non-retail channels then you are missing out on serious revenue potential, as well as on the opportunity to form meaningful relationships with your customers.
Marketing technology today allows you to manage direct guest relationships effortlessly with CRMs, email automations, integrating with a number of communication channels.
If you still think that this is expensive and doesn’t work then you are hopeless, keep paying your agents instead.
Huge ADR gap between retail and wholesale channels
This is the continuation of the previous topic. If your rate variance between contracted rates and direct rates is too high then you are sacrificing revenue in favor of your sales partners. To optimize your distribution between the security of wholesale and retail, maintain a steady variance that is no bigger than 25-30%.
The more you reduce variance between the two, the more increase you will see in direct and retail revenue which will increase your profitability, ADR and ultimately the GOP of your hotel.
Minimal engagement on social media
Your social media is among the first things your potential customers will check out when choosing between you and other hotels. Besides beautiful photos and videos they are looking for social proof – to see how popular your brand is.
Needless to say, social media pages with minimal engagement are quite off-putting even if the content is spot on. They will think that there is a problem that made your hotel unpopular so they won’t be able to develop trust and sympathy with your brand.